ISA Rule Changes
ISAs will no longer come in maxi and mini versions, the rules change on the 6th of April 2008. Instead of having prescribed limits on the cash an equity splits in a maxi ISA, the new ISA will allow you to invest whatever percentage in cash you wish. If you do want to invest solely in cash be careful – you may get a better return from a taxed bank account than you do from some ISAs – always compare your options to see what the charges are. If you wish to invest in equities there are literally hundreds of funds to choose from. Some people like to keep it simple and only invest in one fund, but successful investors usually compare funds and divide their monies over a number of them to reduce the risk. Have a look at the Heritage Portfolios page to see examples of effective portfolio diversification. The new ISA rules will also allow you to invest a further £200 per annum - that's £7,200 - in equities and in cash or cash-like investments in any proportion you choose.
