Prudential Investment Plan

The Prudential Investment Plan is an Investment Bond where you can invest your money in a range of different funds that aims to increase the value of your investment over the medium to long term.

Benefits
  • Start your plan with a single payment and make additional payments at any time.
  • Access Prudential's multi-asset fund range including the PruFund range of funds.
  • Tax efficient withdrawals of up to 5% of your investment each year for up to 20 years.
  • Currently able to switch funds free of charge.
  • Flexible access to your investment.
Risks and considerations
  • This product is only available through a financial adviser.
  • The value of your investment can go down as well as up and you may not get back the amount you put in.
  • Making withdrawals and/or the application of charges will also reduce the value of your investment.
  • You can withdraw over 5% per year but anything over the 5% may incur a tax liability. This may also be the case if you cash in your plan.
  • Tax relief will depend on your individual circumstances and is subject to change in the future.

This is a single premium investment bond that lets you invest your money from a wide range of funds. This plan is aimed at those investors looking for a medium to long term investment, so anywhere between five to 10 years.

• You can start investing – with a minimum of £10,000  and make additional investments of at least £10,000.
• Flexible options for withdrawing your money – you can take regular or partial withdrawals from your bond at any time. You can set the amount of regular withdrawals and choose how often it is taken, within certain minimum and maximum levels.
• There’s also tax benefits – if you pay tax, the Prudential Investment Plan has a valuable built-in tax benefit that allows you to take out up to 5% of your investment each year without having to pay any tax immediately. You can do this for up to 20 years, although if you decide to cash in your plan or exceed the 5% in a year, you may be subject to an immediate tax liability.
• There is a wide range of investments to choose from - you'll have access to our:

• Our core multi-asset funds, including the PruFund range of funds and our With-Profits fund. The PruFund range of funds are unique investment funds.  They include a smoothing process that aims to give you some protection against fluctuations in the market, in particular, some of the short-term ups and downs associated with investing directly in the Stock Market.
• PruSelect range, over 60 funds chosen by independent investment research company, Morningstar and managed by a mix of some of the UK’s leading fund managers.
• Five Dynamic Portfolios and two Dynamic Focused Portfolios which target different levels of risk and potential return and provide access to a combination of investment experts - Prudential's Portfolio Management Group for asset allocation and Morningstar for fund recommendations and selection.
• An additional fund range to complement the Multi-Asset funds which are managed by Prudential and other external fund managers who have been chosen for their investment expertise.

As you can see, there are many fund to choose from and if you decide to change your fund investment, you can currently switch between funds free of charge (this could change in the future) and there’s no Capital Gains Tax to pay. Please bear in mind though that there may be certain restrictions applied to certain funds, details of which you can find in the Key Features Document.

Please note that each fund has its own level of risk and potential growth and the charges for each can vary.

Tax rules require careful consideration and may not reflect your individual circumstances.  The above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice.

An important point to also remember is that the value of your investment can go down as well as up and you may not get back the amount you put in. In addition, if any income or withdrawals taken are more than any overall growth achieved the value of your investment will reduce below the level the amount of original capital you invested.

You can read our investment guides for more information on investing.

What you may get back from your investment

This will depend on many things such as the investment performance, any withdrawals you make, additional features you choose, charges applied to your investment and any tax liability that may apply. You can also read more about this in the Key Features Document.

• Find out more about our multi-asset fund range as well as information on our Dynamic Portfolio and Dynamic Focused options.

• You can see the latest expected growth rates for the PruFund range of funds available through our Prudential Investment Plan. 

• If you are looking for the latest fund details, you can see this on the prices and information page which lists all of the funds available.

Before you decide whether this investment product is right for you, you should read the following documents and then speak to a financial adviser for further information.

Key Features Document                                                                                                                          
Fund Guide
Taxation of Bonds
Guernsey supplement
Jersey supplement
The PruFund Range of Funds: Guarantee Options
Your With-Profits Plan (Unitised With-Profits)                                                                                                                                                                                                                                      With Profits Plan - A Guide to how we manage the fund (PruFund)    

Are you an existing customer?

If you are an existing customer and looking to make changes to your investment, please visit our dedicated Prudential Investment Plan page in the existing customer Investment section of our website.

Advice from The Man from the Pru

Meet with a Prudential financial adviser in your area. We can review your retirement plans, advise on where to save your money and help make your finances more tax efficient. We can recommend options for you from a range of carefully selected products from Prudential and other providers.

Meet with The Man from the Pru

You make a 'capital gain' if you sell assets such as shares or property for more than they cost you. Each tax year you are allowed to make gains up to a certain amount without paying any tax.

For the 2016/17 tax year this figure is £11,100. Everyone has their own individual allowance so it may be possible for couples to make a combined gain of £22,200 before they have to pay the tax - although each individual's circumstances are considered separately. Some gains you make are exempt from capital gains tax. These include gains from the sale of your car and Individual Savings Accounts. Also, you do not have to pay capital gains tax when you sell your home provided certain conditions are met.

Important information

We are not recommending one product option over another. We recommend you seek financial advice if you're unsure about what product could be right for you. The information above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. For more information please visit  www.hmrc.gov.uk.