Poor wrapper choice can hit fund returns by over 60%

Returns from a capital growth investment could vary by up to 67% depending on the tax wrapper select...

Returns from a capital growth investment could vary by up to 67% depending on the tax wrapper selected, research from FundsNetwork has revealed. The group's head of trusts and tax planning solutions Paul Kennedy has warned using a blanket approach to tax wrappers is shaving value off returns. "Simple decisions such as whether to use a collective investment or an insurance bond can have a substantial effect on the client's return," he added. For investments producing capital growth, the worst tax wrapper is an offshore bond, while collective investments are best in light of recent chan...