UK Expatriate Savings Plans.
If you live and work abroad, you might be able to benefit from significant
tax advantages when it comes to making investments. Some offshore investment
funds are able to grow tax free, greatly enhancing the value of the fund
at maturity. Many plans will give you the option of lump sum contribution
or a more regular commitment, subject to a minimum amount.
It is important to understand the charging structure of your savings plan
or investment fund. Fund charges can vary enourmously depending on the
type of plan taken, for example charges may be taken in the first few
years or spread more evenly over the investment term. There might be penalties
which could have a dramatic effect on the funds surrender value if contributions
are stopped or if you need to get at your money earlier than the minimum
One of the most important factors when considering an offshore investment
product is how much risk you want to take. You have to ask yourself the
Are you a cautious or adventurous investor?
Do you want to protect your initial investment?
Are you willing to take a greater risk with the potential of more substantial
Expat Investment Funds are graded to help you with the fund selection.
These funds typically fall into one of the following categories: Category
1 is the lowest risk, Category 5 is the highest risk.
- Funds offering conservative return similar to money market rates.
- Low risk investment funds offering security and potential growth.
- Funds that have a fairly balanced approach to investment by holding
a diverse portfolio of assets.
- Focused equity exposure providing good growth potential with the risk
of short term volatility.
- Aggressive funds balancing the risk of high volatility with the potential
of high capital growth.