These are lump sum investments, which attract regular bonuses. It is a method of investing in equity markets whilst smoothing out the peaks and troughs normally associated with an equity investment. They can be used to provide an immediate income, a deferred income, or capital growth. For Guernsey residents there are some interesting tax allowances, which offer reduced taxation on monies withdrawn from the investment to provide income. Alternatively, if the investment is left for 10 years without withdrawals, it may be possible to withdraw an income totally tax-free!, even when the fund continues to accumulate income in the form of interest, bonuses, or unit price increases.

These types of investment represent a truly worthwhile tax break for the Guernsey resident.

As with all types of investments there are costs, and returns will differ with each provider and each type of Fund. Ross Gower can provide full details of costs, and the sort of returns that can be expected.

For an appointment, please call Ross Gower on 722222 or email us.