ISAs

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3. ISA investments: the 'Components'

You can't put any investment you choose into a ISA. There are strict rules about what you can put in and what you cannot, and the permitted investments fall into two categories which are often referred to as 'components'.

1. Stocks and shares component
   • Shares listed on recognised exchanges excluding the Alternative Investment Market (AIM)
   • Most unit trusts and OEICS
   • Most UCITS - collective funds which can be sold across national borders within the EU in accordance with the 'Undertakings for Collective Investment in Tradable Securities' Directive
   • Most investment trusts and exchange traded funds
   • Private sector corporate bonds with at least 5 years to maturity
   • European Economic Area (EEA) government bonds with at least 5 years to maturity
   • Cash balances held on a temporary basis before being invested
   • Stakeholder medium-term products and life insurance

2. Cash component
   • Bank and building society deposits
   • Money market funds
   • Two dedicated National Savings ISA products
   • Stakeholder deposit account

1. What is an ISA? 2. Who can take out an ISA? 3. ISA investments: the 'Components' 4. The different kinds of ISA: Maxi, Mini and Tessa-only 5. How many ISAs can you have? 6. How much can you put in an ISA? 7. Maxi or Mini? 8. Tax rules on ISAs 9. Practical significance of ISA tax rules 10. Cash ISAs 11. Stocks & Shares ISAs 12. Choosing an ISA fund 13. Buying an ISA 14. Charges and CAT standards 15. Where to find an IFA 16. Switching ISA investments 17. Transferring shares into an ISA 18. Withdrawing funds from an ISA 19. Conclusion