The return you earn will be determined by the underlying investment funds you select, the fees charged and the tax on the investment return, rather than the type of investment vehicle.
To determine the most appropriate investment vehicle, you need to take into account your tax situation and whether or not you require access to the investment. Endowments are typically appropriate for investors with marginal tax rates higher than 30%, and access to an endowment is restricted by legislation. Alternative options to consider are linked investments and unit trusts.
Most investment vehicles offer a wide range of underlying investment funds that one can choose from. You need to take into account your planned investment term and your tolerance for financial risk when determining an appropriate investment portfolio. You also need to consider diversification over asset classes and fund managers, and the relative asset management fees of the available funds.
A registered financial adviser specialising in investment will be able to determine the most appropriate investment vehicle and underlying portfolio taking into account your specific situation.
What you earn will be determined by the underlying investment funds you select, the fees charged and the tax on the investment return, rather than the type of investment vehicle.
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