Prudential Investment Plan

The Prudential Investment Plan is an investment bond where you can invest your money in a range of different funds that aim to increase the value of your investment over the medium- to long-term, so 5 to 10 years or more.

Benefits

  • Start your plan with a single payment and make additional payments at any time.
  • Access to Prudential's Multi-Asset fund range including the PruFund range of funds.
  • Tax-efficient withdrawals of up to 5% of your investment each year for up to 20 years.
  • Currently able to switch funds free of charge.
  • Flexible access to your investment.

Risks and considerations

  • This product is only available through a financial adviser.
  • If you take more money from the plan than the amount your investment has grown by, the value of your investment will be less than you’ve put in.
  • Making withdrawals or the application of charges will also reduce the value of your investment.
  • Cashing in your plan or taking out more than 5% (in any policy year) of the amount you have invested may result in an income tax charge.

This is a single premium investment bond that lets you invest your money in a wide range of funds. This could be right for you if you’re looking for a medium to long-term investment, of between five and 10 years.

  • You can start investing – with a minimum of £10,000 and make additional investments of at least £10,000.
  • Flexible options for withdrawing your money – you can take regular or partial withdrawals from your bond at any time. You can set the amount of regular withdrawals and choose how often it is taken, within certain minimum and maximum levels.
  • There’s also tax benefits – if you pay tax, the Prudential Investment Plan has a valuable built-in tax benefit that allows you to take out up to 5% of your investment each year without having to pay any tax immediately. You can do this for up to 20 years, although if you decide to cash in your plan or take out more than 5% (in any policy year) of the amount you have invested, you may be subject to an income tax charge.
  • There is a wide range of investments to choose from - you'll have access to our:
  • Five Risk Managed Active and five Risk Managed Passive funds which target different levels of risk and potential return and provide access to a combination of investment experts - M&G Treasury and Investment Office (T&IO) for asset allocation.
  • Core Multi-Asset funds and the PruFund range of funds. The PruFund range of funds are investment funds. They include a smoothing process that aims to give you some protection against fluctuations in the market, in particular, some of the short-term ups and downs associated with investing directly in the Stock Market.
  • There is a range of PruFund funds designed to suit different attitudes to risk and reward. They are designed for those wishing to invest for 5 to 10 years or more. There are the five Risk Managed PruFund funds and also the PruFund Growth and Cautious Funds, the latter two include some guarantee options* (at an additional charge). These use our established smoothing process and give you a choice of funds that target a limit of the amount of volatility (the fluctuations in the value of your investments) a fund will experience. We aim to achieve the best return we can over the medium to long-term (5 to 10 years or more), for the level of risk you are willing to take. *The Prufund Protected Funds are currently unavailable to new investments.
  • An additional fund range to complement the Multi-Asset funds which are managed by Prudential and other external fund managers who have been chosen for their investment expertise.

As you can see, there are various funds to choose from and if you decide to change your fund investment, you can currently switch between funds free of charge (this could change in the future) and there’s no Capital Gains Tax to pay. Please bear in mind though that there may be certain restrictions applied to certain funds, details of which you can find in the Key Features Document.

Please note that each fund has its own level of risk and potential growth and the charges for each can vary.

Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in the Prudential Investment Plan on or after 11/09/2017.

However, if you are an existing customer pre 11/09/2017, you will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund.

Reference to With-Profits on this page is only applicable to policyholders pre 11/09/17.

This will depend on many things such as the investment performance, any withdrawals you make, additional features you choose, charges applied to your investment and any tax liability that may apply. You can also read more about this in the Key Features Document.

You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future. The above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice.

The value of your investment can go down as well as up so you might get back less than you put in. If you take more money from the plan than the amount your investment has grown by, the value of your investment will be less than you’ve put in.

You can read our investment guides for more information on investing.

  • You can see the latest expected growth rates for the PruFund range of funds available through our Prudential Investment Plan.
  • If you are looking for the latest fund details, you can see this on the prices and information page which lists all of the funds available.

Before you decide whether this investment product is right for you, you should read the following documents and then speak to a financial adviser for further information.

Key Information Documents

These documents are provided for the products listed below and the funds that are available to new investors through these products.

If you are an existing customer and looking to make changes to your investment, please visit our dedicated Prudential Investment Plan page in the existing customer Investment section of our website.

Looking for help?

Whether you’re facing some tough financial decisions now or you want to think about your future plans, financial advice can make a real difference .
So, if you don’t already have an adviser, arrange a chat with one of our advisers. We offer a restricted advice service.

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