Boost Potential investment ISA performance by up to £743(1)

Boost Potential investment ISA performance by up to £743(1)
Shop around to avoid initial charges, Citi suggests
Many stocks and shares ISA investors are unaware of the impact that initial charges may have on the overall return of their investment, according to Citi, which has highlighted the detrimental effect initial charges can have on overall ISA returns.

Based on an initial investment of £7,200 in an investment (stocks and shares) ISA, the findings show that investors could be losing out on improved investment returns as a direct result of up front charges being deducted from their capital.

Fund houses typically levy up-front charges of between 3%-5.25% on new ISA investments, and Citi’s calculations show that over a period of ten years the returns on a £7,200 investment would be diminished by as much as £743(1), or almost 10% of the overall return, if an initial charge of 5.25%, or £378(2), is levied.

Jonathan Gains, Head of Investments, Citi, said: “Consumers who do not need personalised investment advice should shop around for the best deal on initial charges to help boost their investment ISA performance. The new Citi Investment ISA, for example, has currently eliminated upfront fees, saving up to £378(2) in initial charges, which is instead invested directly in the ISA.”

The Citi Investment ISA no initial charges offer is open to new and existing customers and runs until 30 April 2008. The no initial charges offer applies to all Citi Investment ISAs opened without investment advice. If customers require personalised investment advice, an initial charge may apply. The minimum monthly investment in a Citi Investment ISA is £100 and the minimum lump sum investment £1000. Applications can be made online at http://www.citibank.co.uk/isa?merchant=citi, by telephone on 0800 00 88 00 or in any Citi branch.

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