| Before you select any saving scheme or investment, you may wish to consider the following points: | |
| Aims | What are the stated aims and benefits of the investment? Do these fit in with your own aims and objectives? |
| Returns | Compare the potential net returns of the investment with after-tax returns on very low risk products such as short term gilts and National Savings. Is the potential outperformance of the investment really worth the additional risk? |
| Alternatives | Which other investments share similar characteristics? Are they simpler, cheaper, or less risky? |
| Investment period | Can you tie up your money for the full term? Are there any penalties if you withdraw early? |
| Risk | What is the risk that the investment will not achieve either its own stated aims or your private objectives? What is the most you can lose? |
| Cost | Look at the fixed costs (e.g. buying and selling) and ongoing charges. How do these affect the return? |
| Tax | The way the investment and you, the investor, are taxed is important because it will affect your ultimate return. Check the impact of income and capital gains tax. |
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