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NISA tricks for long term savers

27th June 2014 Print

With only a few days until the New ISA (NISA) increased allowance of £15,000 kicks in on 1st July, savers will be thinking about where to invest their extra savings.

Maike Currie, Associate Director of Fidelity Personal Investing, highlights some tools and tips to build a long term NISA while the clock is ticking.
 
1 Don’t have time to scan the investment universe to build your fund portfolio? Savers can opt for ready-made solutions
 
There are literally thousands of funds to choose from when it comes to building up your NISA pot. But if you’re in a hurry and don’t want to select funds individually, you could opt for a ready-made ‘fund of funds’ portfolio. Fidelity’s PathFinder range gives savers exposure to a range of funds according to their appetite for risk. Once you know the level of risk you’re willing to take, you can choose the right fund to suit you, and our investment experts will do the rest. Savers can pick whether they’d like access to index funds, non-Fidelity funds or Fidelity-only options, and their PathFinder fund can give instant exposure to a range of these investments.
 
2 Baffled by information overload? Use the free tools available to streamline your choices
 
There are plenty of tools available to help savers make the right decisions for them when it comes to investing in their NISAs, so make the most of them. Fidelity’s Select List presents 140 funds hand-picked by Fidelity’s investment professionals from a range of sectors and asset classes, designed to aid the decision-making process for ISA savers. Likewise, our tool People Like Me can show you how your peers are using their ISA savings this year, which could give you inspiration for your own portfolio. Once you’ve set up your NISA pot, you can monitor it on the move with Fidelity’s Investment Explorer app – which gives you real-life forecasts and insight into the investments you’ve chosen.
 
But whichever tools you use, make sure you use them properly. Be realistic when thinking about your goals and risk appetite, so that the investments you make are based squarely around you.
 
3 Make the most of the new flexibility
 
Still not sure where you want to put your NISA investments? Don’t panic – you can consider holding your money in Fidelity’s ISA Cash Park while you make up your mind.
 
In the past, legislation stipulated that the cash element of a stocks and shares ISA was not meant to be used for tax-sheltering purposes. This meant that cash could not be left in the account indefinitely and that it was subject to a 20% HMRC tax charge
 
Under the new rules the ISA Cash Park no longer needs to be seen as a temporary home for your cash and you can earn tax-free interest on cash held in a stocks and shares ISA. This is a welcome simplification as it means you can quickly and simply move in and out of cash within a stocks and shares ISA without losing time in the market.