Investors advised to choose ISA’s over endowment policies

Investors advised to choose ISA’s over endowment policies March 13

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Investors may be better off putting their money into ISA’s rather than endowment policies if they are looking for certainty of return, one investment manager has said.

According to Ben Yearsley of Hargreaves Lansdown investment managers, ISA’s will offer better returns for those looking for a medium-risk investment.

“At the end of the day they were supposed to get certainty about reaching a certain level,” Mr Yearsley said, referring to the recent problems with endowment policy investments.

“I think that the lack of transparency is an issue with endowment policies in terms of charging and performance and, in a lot of cases, you are probably better off with a normal regular savings plan into an ISA.”

He was speaking following research by Money Management magazine which showed that around one in ten endowment firms were expecting returns below initial expectations.

Written Exclusively by AdFero for ISA Guides

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