How do ISAs work?
An ISA shelters your investments from personal income tax and capital gains tax.
Please note that any losses made in an ISA cannot be used to offset gains elsewhere. You can subscribe to an ISA if you are:
- Aged 18 or over (16 or over for a cash ISA)
- Resident and ordinarily resident in the UK for tax purposes
There are four main types of ISAs; investing in either stocks and shares ISA, cash ISA, Innovative Finance ISA or a Lifetime ISA
- You can invest up to £20,000 in your ISA during the 2021/2022 tax year
- You can transfer money held in an ISA from stocks and shares into cash and vice versa, without affecting your annual allowance
- You can choose how to split your tax-efficient savings yourself. For example, you can save the full amount in stocks and shares or the full amount in cash – or you can invest in a combination of the two depending on your individual investment needs
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.
The views expressed on this page should not be taken as a recommendation, advice or forecast.
The M&G ISA
The M&G ISA is a stocks and shares ISA only. Due to our focus on long-term investing, The M&G ISA is not a Flexible ISA, Innovative Finance ISA or a Lifetime ISA.
Only income shares are available for the majority of funds offered within The M&G ISA. Income shares entitle the holder to be paid the income attributed to those shares on the payment date. This is usually paid twice a year but may be paid annually, quarterly or monthly depending on the fund. This income can be reinvested in further shares of the same fund if you so choose.
The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
Funds available
You can invest in any of the following funds in The M&G ISA. Click on the fund names to find out more about each fund.
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. Please be aware, your investment may increase or decrease as a result of currency fluctuations.
Share classes and charges
Available share classes
- Sterling Class A Shares
- Sterling Class X Shares are no longer available for new investments in The M&G ISA from investors who are not dealing via a financial adviser
- Sterling Class R Shares are only available to private investors when you invest via our new online investing service myM&G or through a financial adviser
On our Fund availability and fund types table (on pages 4-6 of the attached document) you will find information about the specific share classes available in your choice of fund(s).
Charges
Entry and exit charges do not apply to investments in M&G funds Sterling Class shares. However, please note that an ongoing charge will apply. The ongoing charge is made up of the Annual Charge which may be discounted depending on the size of the fund, and extraordinary expenses. For property funds, the ongoing charge does not take into account the property operating expenses, also known as PER. For information on all our charges, please refer to our Fund Charges page.
Most funds offer the choice of two share types – Income or Accumulation. Only income shares are available for the majority of funds offered within The M&G ISA.
Investment Limits (per fund)
The table below shows the minimum investment limits in The M&G ISA. From 6 April 2021 to 5 April 2022 the maximum you can invest in an ISA is £20,000. Please note that M&G only offer a stocks and shares ISA.
| Investment minimums (per fund) | |
|---|---|
By monthly Direct Debit |
By lump sum investment |
Initial amount of £10 |
Initial amount of £500 |
Top-up amount of £10 |
Top-up amount of £100 |
Invest now
Before investing, please make sure you have read the Prospectus, Key Investor Information Documents (KIIDs) and Costs and charges illustration for the fund(s) in which you wish to invest. Here you will find more information about your investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration.
You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions.
We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you.
Once you’ve chosen the fund(s) in which you’d like to invest and have read the relevant KIID and the Important Information for Investors document, you can:
- Invest by phone
- Invest by post
- Contact the Investment Helpline to request application forms or download application forms
You can also transfer your existing ISAs with other providers to M&G.
Please note, your current provider may apply a charge when you transfer your investment. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.
Additional Permitted Subscription (APS) ISA
An APS ISA allowance is an additional allowance which you are granted on the death of your spouse or civil partner. You can either use your allowance by transferring the cash to us so you can buy M&G funds or, where you have inherited the deceased's assets, instruct an in-specie transfer. Further information can be found in our APS section.
