Should I invest in UCITS or insurance-based funds?
There are two main routes to investing in funds in Ireland. You can invest through an insurance company, or directly into UCITS funds.
Each route has pros and cons – we’ll advise on what’s right for you when we make our recommendation.
Investments ‘wrapped’ in an insurance policy are simpler, and better at handling smaller investments, such as regular monthly direct debits. Insurance companies will also handle all the tax aspects for you, and you can buy and sell funds within an insurance policy without triggering a tax liability on your gains.
Investing directly into UCITS funds can offer cheaper fund management charges. You are not required to pay the 1% government levy which applies to investments through an insurance policy. On the other hand, UCITS fund managers won’t handle tax matters, and you’ll become liable to self-assessment for tax when you invest directly in these funds.
Moneycube will advise on the most appropriate route for you as part of our investment recommendation.