Question 1

What is a Stocks and Shares ISA?

Accepted Answer

An ISA (Individual Savings Account) is a tax-free account for holding cash and/or investments. You can deposit up to a maximum of £20,000 across your ISAs per tax year.

Question 2

What funds can I invest in with a Stocks and Shares ISA?

Accepted Answer

Plum has a range of funds you can invest in, matched to your interests or risk appetite such as the Core US S&P, A Balanced Bundle, Or Emerging Markets. A professional manager takes your money and combines it with other investors' to buy into a wide range of assets, like property, stocks. Because they’re managing the whole pot, they can curate a diverse mix of investments that would be hard to build on your own. You choose the fund that fits your goals; they handle the day-to-day trading. By diversifying your assets, it can help to balance out any market volatility. Keep in mind, as with any investment, the value of funds can go down as well as up, so you might get back less than you put in. If you’re ever unsure if investing is right for you, it’s always a good idea to seek independent financial advice.

Question 3

Who is eligible to open a Stocks and Shares ISA?

Accepted Answer

A person should be 18+ and an UK resident to open an investment ISA.

Question 4

Can I lose money investing in a Stocks and Shares ISA?

Accepted Answer

It is important to understand that investing comes with some risks. Your capital is at risk, which means that it is possible that the amount you invest (your "capital"), will not increase in value, or even that you get back less money than you put in. Keep in mind that historic performance is not a reliable indicator of future performance. And it’s impossible to predict the future, so your return might be different than what you expect.

Question 5

When is a good time to start investing?

Accepted Answer

Investing is all about giving your money the time it needs to grow. While investing doesn't come with guarantees, starting earlier can help your money work harder over time. It's generally good practice to only put away money that you don't need for the next 5 years. Before you dive in, it’s also a smart move to have a "just in case" pot—usually 3–6 months of expenses to handle life’s surprises. If you’re ever unsure, seek independent advice.

Question 6

Where is my money held when I invest in funds?

Accepted Answer

When you invest in a fund using the Plum app (whether for a General Investment Account, Stocks and Shares ISA or Self Invested Personal Pension), you’re buying part of a fund made available to Plum by an FCA-authorised and regulated fund provider. Your investment in a fund (client asset) is segregated from any assets held by the fund provider (their own assets) and the respective regulated custodian. This custodian helps ensure your share of any Plum investment funds are not stolen or lost. As a result, a high level of protection is available in the unlikely event of a firm’s insolvency. If the appointed custodian or fund provider were to fail, you would benefit from the FSCS. Investments are held within the fund itself, so a high level of protection is already in place in the unlikely event that a fund provider is insolvent.

Question 7

How much does it cost to open a Stocks and Shares ISA?

Accepted Answer

In addition to the subscription charge, there are platform fees and fund management fees that depend on the specific fund you choose. Read more about our fees here.

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