As we enter the Chinese Year of the Dragon, we look at the characteristics of this auspicious and extraordinary creature. It symbolizes power, nobility, honour, luck, and success. It suggests that 2024 is forecast to bring about opportunities, changes - and challenges.
One challenge is the tax burden in the UK, which is the highest faced since the Second World War. That’s why annual tax allowances are highly valuable. So, if you are looking for ideas for your tax-efficient investments, take a look at emerging markets.
Emerging markets are a group of 24 countries that currently account for 65% of global growth – and that is forecast to grow even higher. It includes global giants like India, China and Brazil as well as others in Europe, Asia, the Middle East and Latin America.
They are home to some of the world’s most innovative and exciting corporations, pioneers in e-commerce, semiconductors, fintech and artificial intelligence (AI) and are recognised as hotbeds of global innovation.
Many of us use the products and services generated in emerging markets everyday - when we watch TV, use mobile phones or drive our cars. And at the moment there could be some indicators that point to a ‘double discount’ opportunity.
REASONS TO INVEST
TEMIT offers investors a simple way to invest in the dynamic growth potential of new economies around the world.
TEMIT offers you an easy way to invest in a portfolio of 60-80 quality companies handpicked by our team of investment specialists. It’s the original emerging markets investment trust delivering returns for shareholders for 35 years and also the largest, growing to over £1.8 billion of assets under management (as at end January 2024).
It offers a host of features and benefits for shareholders that you could enjoy too. 5 reasons investors choose TEMIT
And investing through a range of tax-efficient wrappers available, it means you can enjoy the full returns generated without giving anything to the taxman. But remember, the current tax year ends on 5 April 2024 – and if you don’t use this year’s allowance before the deadline, you will lose it.
Individual Savings Accounts (ISAs) and Self invested personal Pensions (SIPPs) are still a great way to invest in the stock market thanks to their flexibility and the tax benefits they offer.
Source: HM Government
Allowances for 2023/24 – deadline 5 April 2024
(or 100% of earnings if lower)
Allowances for 2023/24 – deadline 5 April 2024
Allowances for 2023/24 – deadline 5 April 2024
There are a host of tax-efficient wrapper products you can use.
Individual Savings Accounts (ISAs) and Self Invested Personal Pensions (SIPPs) are still a great way to invest in the stockmarket thanks to their flexibility and the tax benefits they offer. Your annual ISA allowance is £20,000 and you won’t have to pay anything to the taxman or even declare it on a tax return.
The annual allowance for SIPPs is currently £60,000 and they offer a range of advantages including tax relief and the ability to take some tax-free cash. As they are more complicated, we recommend seeking financial advice before making any decisions.
Children have annual tax allowances too. The Junior ISA allowance is £9,000 and the Junior SIPPs allowance is £3,600. They offer the same benefits and tax advantages and are easy way to take the first steps of an important investment journey. It’s an easy way for parents, grandparents, family members and friends to give children a helping hand in their financial future.
One key point is that the money in Junior ISA can’t be accessed until the age of 18 when it becomes an ‘normal’ ISA and money in a Junior SIPP is safely locked away until retirement.
Lifetime ISAs can also help first time buyers. A Lifetime ISA is a flexible, affordable way to save and invest for your first home or later life. You can open one if you’re between 18 and 39 years old.
The information on this page is correct as at 22 February 2024 and relates to the 2023/2024 tax year. If you’re a Scottish taxpayer, tax rates and bands are different. Tax rules can change and benefits depend on personal circumstances.
Shares in TEMIT qualify as an investment which can be held through an ISA. TEMIT is available through a stocks and shares ISA from a number of different companies. As individuals’ financial circumstances will differ, we recommend you talk with a qualified financial adviser regarding the options available to you before making investment decisions.
Important Legal Information
This website is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Templeton Emerging Markets Investment Trust (TEMIT). Nothing in this website should be construed as investment advice. Opinions expressed are the author's at publication date and they are subject to change without prior notice. Subscriptions to TEMIT can only be made on the basis of the latest available audited TEMIT annual report and TEMIT half-yearly report if published thereafter.
The value of shares in TEMIT and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. An investment in TEMIT entails risks which are described in the TEMIT annual report. In emerging markets, the risks can be greater than in developed markets. Investments in derivative instruments entail specific risks more fully described in the TEMIT annual report.
US Persons are not eligible to invest in TEMIT. Shares of the TEMIT are available for sale and distribution in the UK. Any research and analysis contained in this website has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally.
References to particular industries, sectors or companies are for general information and are not necessarily indicative of TEMIT's holding at any one time.
References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
There is no guarantee that TEMIT will achieve its objective. Please consult your financial adviser before deciding to invest. You can download a copy of the latest TEMIT annual report and TEMIT half-yearly report, or request one, free of charge, from Franklin Templeton Investment Management Limited, Cannon Place, 78 Cannon Street, London EC4N 6HL. Authorised and regulated by the Financial Conduct Authority. Telephone: 0800 305 306, Email: [email protected].
