Understanding What You Hold in an ISA, SIPP or Portfolio
People hold investments in different places: a Stocks and Shares ISA, a Self-Invested Personal Pension (SIPP), a workplace scheme or a general investment account. The account is simply the wrapper. What matters for understanding is what sits inside it. This guide explains, in educational terms, the things investors commonly look at.
Wrappers and holdings
An ISA, a SIPP and a general account each have their own tax rules and access rules. Inside each one you may hold funds, investment trusts, exchange-traded funds (ETFs), individual shares, bonds or cash. Two accounts can hold very similar things, or very different things.
Common fund types
- Index funds and ETFs aim to track a market index.
- Actively managed funds have a manager who selects investments.
- Multi-asset funds hold a mix of shares, bonds and other assets in one fund.
- Lifestyle or target-date funds change their mix over time according to a set plan.
Diversification
Investors often want to know how their money is spread across regions, sectors and asset types. Holding several funds does not always mean holding different things; funds can overlap.
Costs
Charges can include the fund's ongoing charge, platform fees and dealing costs. Understanding how these are structured helps you know what you are paying for.
Risk
Every investment carries risk. Common types include market risk, currency risk, concentration risk and inflation risk. The value of investments can fall as well as rise.
How the Free Portfolio Review fits in
If you would like an educational description of your own holdings, you can tell us what you hold through the Free Portfolio Review form. The review explains how your portfolio is put together. It does not tell you what to do with your pension or any other account, and it is not advice.
Important information
Investor education only, not financial advice. Alpesh Patel is not a pension adviser. Investments can go down as well as up. Past performance is not a guide to future returns. For advice on your pension, speak to an adviser authorised by the FCA.
Request your Free Portfolio Review or book a 20-minute call.
Important: this article is education and information only. It is not financial advice or a personal recommendation, and it does not take your circumstances into account. The value of investments and pensions can fall as well as rise, and you may get back less than you put in. Past performance is not a reliable indicator of future results. Figures were correct when the article was written and may have changed. If you are unsure what is right for you, speak to a regulated financial adviser.
