Managed Fund Sipps - Sipps Pension Guide

Managed Funds Sipp

Using Managed Funds as a vehicle for your SIPPs pension means that you are allocating part or your entire pension fund to a collective fund in turn invests in various stocks and shares, properties or whatever.

Managed funds are normally run by the larger life assurance companies and are nearly always associated with Unit Trusts, Investment Trusts, Companies (OEICS), Life Funds and the many different types of Pension Funds.

The point of a managed fund and the reason that there are generally good for Pension Funds is that they invest in a wide range of assets that include Bonds, Property, Cash and Stocks and Shares. This together with the expertise of the Fund Manager means that generally the Managed Fund is low risk with the aim of maximizing returns to investors whilst at the same time mimicking risk.

Using a Managed Fund as a vehicle for your SIPPS Pension almost seems like a contradiction but you could allocate part of your plan, the lower risk element into a Managed Fund.

Also by using your SIPP Pension it is much easier to change Fund Mangers than if you held the Managed Fund within a normal Personal Pension Plan. If you already have money wrapped up in a Managed Fund or make regular contributions to one then it may well be worth transferring this into a Sipps Pension.

By bringing the assets within the Sipps Pension Fund you are protecting your fund from Capital Gains Tax and if you are a higher rate taxpayer you will be entitled to 40% tax relief on any contributions that you make