What you can put into a
SIPPS pension
The full list
Equities
Exchange Traded Funds
Fixed interest
Property
Direct property investment
There is an entire array of investments
which qualify for inclusion within a pension structure.
However to gain access to the majority, savers will need
either a Self Invested Personal Pension (SIPP) or a Small
Self Administered Scheme (SSAS) .
Pension rule changes, which came into effect in April 2006,
mean it is possible to include any of the following list
within a pension, provided of course the pension provider
you choose, chooses to offer them.
The Full list
Equities
If you have a personal or stakeholder pension, it is likely that your investment
choice will be restricted to a handful of funds (usually
those of your pension provider).
This can have the disadvantage for those who want to invest
in a particular area/sector, but know the fund managed in
that area/sector, by their provider, is a poor performer.
Even when a personal pension provider offers what is known in financial
jargon as “open-architecture” the fund of your choice may
not be on offer.
Using a SIPP provider will dramatically increase the number
of investment funds on offer.
To find a good SIPP provider ask
an IFA
Some pension providers allow investors to incorporate exposure
to commodities with in their pension fund, via exchange
traded funds.
Exchange traded funds
These basically track an index - in much the same way as
a unit trust but as shares rather than units.
There is a cost saving for investors to
using ETFs.
The average UK tracker fund has an annual management fee
of around 1% compared to just 0.3% for the equivalent ETFs.
Of course, private bankers and discretionary fund managers
have long used commodities within client portfolios for
protection, because they are believed to be negatively correlated
to equities.
The arrival of exchange traded commodity funds into the
UK in recent years, means that now retail investors can
get exposure to these assets themselves.
It is possible to track, gold, oil, wheat and much more
through these funds. More information on ETFs and your general
pension requirements are best obtained through a reputable
IFA. To link to one via us please
click here
Read on
What else you can put into
a SIPPS pension
Fixed interest
Property
Direct property investment
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