First Mortgage

ISA or Individual Saving account is a financial product to help the masses save and invest their money and also save taxes. Especially with the introduction of even lower isa rates.

The ISA’s are mainly made of two main components: cash and stocks. The cash component of the ISA is similar to that one deposits in any savings account except the fact that this is tax free. The second component comprises of shares and stocks. Here the money is invested in a wide range of financial instruments like public debt securities, government or corporate bonds. In short money can be invested in any equity investments of the stock market. Apart from these the amount can also be invested in derivatives like options and also property funds. As the money is invested in the stock market and other areas where the risk involved can be high, the risk involved in the ISA can be either high or low. The account holder has the option to invest this money himself or he can also use the services of a stockbroker. In spite of the options available mostly the money is invested in collective unit schemes like unit trust or investment trust. An insurance component was also available till 2005-06 but was discontinued then.

Thus, because of the cash and stock options available, there is a wide range of options available for the account holder to invest in and save their money.