| | | Unit Trusts Sipp
It is perfectly feasible and possible to invest your SIPP Pension Fund or at least part of it into a Unit Trust. Of course it is possible to currently invest your personal pension fund into Unit Trusts but the problems typically lie in the fact that you are obliged to choose a fund that is managed by your pension provider and it is difficult and expensive to change Pension providers over the life of your pension. In contrast, investing in Unit Trusts with a SIPP pension gives you access to a much wider range of funds through a broader selection of fund managers. If you were unhappy with the companys performance with a traditional personal pension you would need to change the whole pension. With a SIPP Pension invested in Unit Trusts you only have to change the Unit Trust provider. The other advantage over typical Unit Trust and Pension providers is that these companies have policies and strategies in place that can inhibit the growth of your fund. This of course is a nessacary step that these large companies have to have in place as they are looking after 1000s of clients needs and each one of these clients have different risk expectations. By administering your own Unit Trust Sipp Pension you are able to adopt a policy that suits your own specific needs. You may for example want to adopt an aggressive, high-risk policy for a number of years. Sipps give you the freedom to switch out of poorly performing Unit Trusts. They also offer the potential for much higher returns. But SIPP Pension Unit Trusts still receive the same tax relief as normal personal pensions. Many people who are currently running their own SIPP Pension normally allocate a portion to Unit Trusts in addition to the many other investment options on offer with a SIPP Pension. |
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