Established 1863

Mon-Fri 9:00-16:30

01254 222 700

info@redroseassurance.co.uk

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Stocks and Shares Shariah ISA
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Stocks and Shares Shariah ISA

Our Shariah ISA gives you a way to save, compliant with your Shariah beliefs, in a flexible way to potentially outperform a Cash ISA over the longer term.

You can invest in our Shariah ISA in addition to your Cash ISA each year as long as you don’t exceed the annual ISA limit set by the government (£20,000 in the 2018/19 tax year).


Main Product Features

  • Flexible

    There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more)

    There is no set premium – you can pay in regularly by direct debit of £25 or more and / or invest lump sums at any time up to the annual ISA limit. If you pay by Direct Debit you can alter the amount whenever you want or even stop paying for a period of time.

    You can make withdrawals at any time, although this will obviously affect the total return

    You can transfer ISAs from other providers to us or transfer your Red Rose ISA to another provider

  • Tax free

    Our ISA provides a tax free return when you cash in, transfer to another provider, or on your death

  • Shariah compliant fund

    An investment fund which meets all of the requirements of Shariah law and the principles of Islamic Finance. The Fund will only invest in Shariah-compliant companies and approved financial instruments. The Fund is prohibited from investing in financial derivatives or other non-Shariah compliant instruments.

    We are aware of the importance of the Fund complying with Shariah law. The Fund is overseen by an independent Shariah Committee that is responsible for:

    Agreeing the investment objectives and policies

    Advising the fund managers regarding compliance with Shariah principles

    Establishing the principles for calculating an appropriate percentage of ‘non Halal’ income

    Approving suitable charities for the donation of ‘non Halal’ income

    Preparing an annual certificate of the Fund’s compliance with Shariah principles

  • Where does the Fund invest?

    The Fund is managed by a specialist team at HSBC. The HSBC Islamic Global Equity Index Fund (the Fund) aims to create long term appreciation of capital through investment in a diversified portfolio of securities. It aims to track the Dow Jones Islamic Market Global Titans 100 Index which is Shariah compliant – all companies included in the Index are screened by the Shariah Supervisory Board which is a committee of 4 Islamic Scholars.

    The Index does not include companies in the following sectors: Weapons and Defence, Pork related products, Tobacco, Alcohol, Financial Services or Entertainment sectors.

    The Fund invests in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.

Things to consider

You will find more information about the ISA in the Key Information Documents and Key Features Document. Below are some important points that we want you to be aware of:

This is a medium to long term investment (5 years or more) and although it is flexible so that you can withdraw some or all of the money (with a £100 minimum) at any time, you could get back less than you have invested

Please note that this is a risk investment – there is no guarantee that you will get your money back. The value of your Shariah ISA can go down in value as well as up, and is based upon the performance of the underlying investments in the Shariah Fund

Inflation will have an effect on the future purchasing value of your investment

HMRC could change the tax status of ISAs in the future

Stocks and Shares Shariah ISA
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Product Comparison Table

Product
Tax Exempt Savings Plan

ISAs

Investment Bond
Min prem £10 £25 pm
or £500 initial
£500
Max Prem £25
(a taxable version is available if a higher premium is required)
£20,000
for 2018/19 tax year
Unlimited
Min age at outset 17 18 Birth
Max age at outset 74 None 90
Min term (years) 10 None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30
(but must mature before 85th birthday)
Unlimited Unlimited
Fixed term Yes No No
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
No
Life cover Sum assured plus all bonuses added to date of death 101% of the ISA value at date of death 101% of the Bond value at date of death
Transferable No Yes
can be transferred from or to another provider
No