F: Future – 7 “good” reasons to invest in a sustainable Stocks & Shares ISA

Written by Abi Sater on 22nd Mar 2023

This article is from our new guide The ABCs of ISAs – a Good Guide, which is available to download for free here.

Here’s what 3.5 million people in the UK know that you don’t…

Alas, we would love to say that ALL 3.5 million people in the UK who opened a Stocks and Shares ISA last year were investing sustainably, but that figure is really around one in eight based on data covering all investments (at The Big Exchange we’re working hard on increasing that!).

So, taking those stats – we could assume just under half a million people in the UK are currently investing sustainably through their ISA for themselves and future generations (there could be greater or fewer!) What do they possibly know that you don’t, you ask?

Well, we want to let you know that it’s not rocket science! It’s an understanding that your ISA has power – power to have the possibility of financial growth as well as positive change for our planet at the same time.

So, here are our top seven reasons why investing sustainably through your ISA on The Big Exchange is accessible, empowering, and really could be for you.

1. ISAs have universal tax benefits

An ISA is a great way for you to hold onto more of what you might make because any earnings or profits are TAX FREE! You don’t pay any Capital Gains Tax or Income Tax on your eligible contributions (up to £20,000 across your different ISA products). This could help make your tax situation much more straightforward.

Please remember that tax treatment depends on an individual’s circumstances and may be subject to change.

2. You can aim to beat inflation

Prices are rising fast and even though interest rates are going up in cash accounts, they still lag far behind inflation. This means any savings in cash are effectively losing value. If you want to give your money a fighting chance of beating inflation in the long run then investing could help you achieve that.

3.  It’s not scary when you know what to expect

We’re not guaranteeing that you’ll make any money, and you should always plan to invest for the long term – at least five years. Over that time your money may go up and down in value but the longer you leave it invested, the more chance your money has to try and grow.

That being said, your money is not locked away on The Big Exchange and in normal market conditions you can get access to it and have your investments sold to cash and back in your bank account within a week*. What’s more – we care: we begin with the basics on The Big Exchange and try to make sure everyone has a good understanding before investing.

4  Companies can profit from building solutions

The good thing about investing is that you can do good. If you want to try to make a difference, you can aim to grow your money by investing in funds which back companies delivering solutions to some of the world’s biggest challenges.

We need companies to deliver solutions through their products and services to areas where we need it most. If that’s renewable energy, we can back innovative energy providers, if you care about biodiversity there are companies leading the way in making alternative materials to wood and plastic, for example. There are ways for companies to make money and do good.

5  It keeps you thinking about future generations

Investing is for the long term – it’s about making sure your money is helping you work towards your future goals: retirement, to leave to your children, a special occasion. Whatever it may be, you have a choice. To try and reach those goals by benefitting from funds destroying our world, OR by investing sustainably and aiming to make money from those companies thinking about people, planet, and future generations.

6. It’s not more expensive

For investors with under £250,000, investing in the same funds on The Big Exchange as you might do on Hargreaves Lansdown (HL) is nearly half the cost! That’s more left in your investments!

To invest £10,000 in Triodos Pioneer Impact on TBE you’ll pay Triodos £110 per

year for managing the fund and pay The Big Exchange £25 per year for our service. And there are no extra fees. On HL, you’d be paying Triodos the same and then pay £45 per year to HL – that’s nearly double!

7. You can join a new wave of investors

Investing has mostly been seen as something for wealthy people – mainly men. We want to break that stereotype. Half of our customers are women and 40 per cent are first time investors.** The Big Exchange is showing that putting social and environmental objectives and purpose alongside financial motivations is encouraging more people to get involved and breaking down barriers to entry.

Visit The Big Exchange for more.

* Normal market conditions refer to when funds are open and trading daily. In some rare market conditions, funds can close to protect investors and restrict liquidity.

** The Big Exchange Customer Data December 2022

This is information provided by The Big Exchange and it should not be seen as investment advice. Please remember that when investing, making money is not guaranteed and your capital is at risk. The value of your fund can go down as well as up. Tax treatment depends on an individual’s circumstances and may be subject to change.

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