IFISA season is well underway, and investors are busy deciding on where to place their hard capital to get their money working for them. The annual ISA allowance is £20,000, and you have many options available in terms of how to invest that sum. You can either grow your capital by opening a single account per tax year or investing across ISA wrappers, from cash to stocks and shares or innovative finance. The addition of an Invest & Fund ISA could be a valuable addition to your portfolio, helping to achieve your long term investment and savings goals, offering the potential for stable returns and very low volatility.
In 2016, the UK Government launched Innovative Finance ISAs (IFISAs) to allow lenders to earn tax-free interest on peer-to-peer lending by investing in property schemes. An IFISA provides the midway alternative for investors wanting their capital to outperform a traditional cash ISA without exposure to the stock market’s volatility.
Invest & Fund offer an IFISA that serves dual purposes. Firstly, it exposes our investors to the UK property market as an asset class, with all the benefits of a secured physical asset, in the most tax-efficient way possible. Secondly, our IFISA allows for risk-adjusted returns without additional direct investment costs traditionally associated with the property market.
When considering the products available within the ISA wrapper, it is worth looking at the performance of products over the last few years during some of the most challenging credit conditions in living memory. Invest & Fund's IFSA has proven to be extraordinarily resilient and desirable in recent times, continuing to deliver attractive returns for investors during unprecedented economic shocks and instability
There are some excellent benefits on offer by making the best use of the tax-free element of your ISA. Invest & Fund provide gross interest rates from 6.75% backed by the security of the property projects you will fund; it’s a fantastic opportunity to grow your wealth over time.
It's worth remembering that Invest & Fund's IFSA has consistently delivered:
- A consistent return of 6.75%
- Stable low volatility return
- Strong security headroom protection (typically 35% GDV)
If you were to maximise your £20,000 IFSA pot investment even at our lowest level of return each year, compounding year on year over ten years, you would see over £100,000 in interest alone. Moreover, these returns can grow as you re-invest your principle with the flexibility and security of our asset class.
The asset class has shown extremely low volatility over the last few years and stable returns. For the sophisticated investor, it is worth considering whether now is the time to rebalance your portfolio and make full use of the 2022/23 tax allowance in your Invest & Fund IFSA.
Research from Peer2Peer Finance News has revealed that the IFISA even outperformed the stock market in the UK – namely the FTSE All-Share Index – over the four years from 2018 to 2021, whilst also demonstrating far more stable returns.
IFISA has seen strong growth since its inception; in 2019/2020, £438m was invested into the IFISA alone, taking the total invested past £1 billion; this does not include the amount invested in last year’s IFISA for 2021/22 season. If the increase in volume that Invest & Fund has seen is reflected across the whole IFISA market it will be a bumper year!
Invest & Fund has returned over £110 million of capital and interest to lenders with zero losses, showing the rigour that governs our business.