PruFund Investment Plan
The PruFund Investment Plan is a single premium investment plan that uses a unique smoothing formula that aims to protect the value of your fund against some of the fluctuations in the stock market.
The investment plan is no longer open to new or top up business but if you have an existing plan, it still has the following benefits.
Benefits
- Access to Prudential's fund management expertise through the PruFund Growth Fund and PruFund Growth & Income Fund.
- A unique smoothing formula that aims to provide stable returns.
Note that the value of your investment may fluctuate and you may not get back your original investment. - Rolling Guarantee Option - (note this was only available on plans taken out from 13 October 2008 onwards). The option allowed you to guarantee a minimum fund value on each fifth anniversary. Note that there is a charge for this guarantee.
- 5-Year Capital Guarantee Option - (note that this was only available on plans taken out before 13 October 2008). There is a charge for this guarantee.
- Tax benefits - if you pay tax your bond has a valuable tax benefit. This allows you to take out up to 5% of your investment each year from your plan for up to 20 years - free from any immediate income tax liability. There may however be additional tax liability when you cash in your plan.
This is based on our understanding, as at November 2011, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.
- Flexible options for withdrawing your money.
- Limited amount of life cover.
For more information about your plan read your brochure or read your key features.
What will I get back?
This depends on many things including investment performance, which can go down as well as up, any withdrawals, features you choose, charges and any tax liability that may apply.
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PruFund Investment Plan - PruFund Expected Growth Rates
You can see the latest expected growth rates for PruFund Growth Fund and PruFund Growth & Income Fund available through our PruFund Investment Plan in the table below. ShowPlease note the following about the current rates:- The rates are effective from 25 November 2011 to 26 February 2012.
- The Expected Growth Rates quoted below are shown gross of product charges.
- They are the annualised rates which will be applied daily to increase the unit price of each fund and are set quarterly by the Prudential Directors having regard to the expected long term investment return on the assets of each fund.
- The Expected Growth Rates set at future quarter dates are not guaranteed and may be higher, the same or lower than those applying at the start of your investment.
- The unit price may be adjusted at the start of each quarter or, occasionally (subject to the underlying asset performance), during the quarter, which will affect any growth you receive.
Fund Expected Growth Rates before charges PruFund Growth Fund 6.60% p.a. PruFund Growth & Income Fund 6.30% p.a. Suspension of smoothing
The smoothing formula aims to deliver more stable growth. However, in order to protect the fund and its investors, there may be circumstances where we temporarily suspend smoothing.
If smoothing is suspended, it will be for a minimum of 30 days, and the unit price of your investment will change daily in line with the value of the underlying fund rather than in line with the Expected Growth Rate.
Review your PruFund Investment Plan
- To find out more about your plan call 0845 640 1000 (Monday-Friday 8am-6pm).
- We send you a statement twice a year but you can also request a fund valuation online.
Read more
Taxation of Bonds (pdf 300k)
PruFund Investment Plan Key Features (pdf 120k)
