Posted by Clara Matty on 04/30/2019

How do IFISAs stack up as an investment opportunity?

Godwin Capital, the fundraising and investment arm of Godwin Developments, has announced the launch of Godwin Finance: A new investment platform that provides the opportunity for individual investors to commit a minimum £1,000 investment into a 3-year Fixed Interest Bond. 

Eligible for cash and IFISA investment, the Fixed Interest Bonds are forecast to provide a 7-11% annual return. 
But what are IFISAs? And what are the benefits and capital risks associated with the product? Andrew Mitchell, Group Investment Director for the Godwin Group explains: 

What is an IFISA?

“Unlike Cash or Stocks and Shares ISAs, an IFISA will pool your money into a specific borrowers’ fund in return for an agreed or set amount of interest, which is generally based on the specific time period.” 

“You can currently invest up to £20,000 per tax year tax free across all ISA types, including IFISAs, enabling non-sophisticated investors to potentially benefit from the tax-free allowance together with the potential for competiative returns on an annual or biannual basis.” 

What are the risks and regulations?

“You can only pay into one IFISA per year, however you can still divide your annual ISA allowance across different ISA products, as long as you don’t exceed the £20,000 allowance.” 

“However, when transferring IFISA investments into Fixed Interest Bonds, individual investors can exceed this annual £20,000 limit, if they are choosing to transfer in or utilise investments accumulated in previous years.” 

“It’s important to note that investing in IFISAs does put your capital at risk, and the borrower could fall short on the forecast interest amount. It is, therefore, vital to take the time to understand exactly what your money will be used for when investing into an IFISA.” 

“For example, the funds raised via the new Godwin Finance Fixed Interest Bonds will be pooled into a £7.2 Million fund for the acquisition of property and land, managed by Godwin Developments – the property development arm of the Godwin Group, which has an established and diversified property portfolio including sites developed for a number of prestigious high-street and retail brands.” 

Investing with Godwin Finance Ltd puts your capital at risk and investment returns are not guaranteed. Investments are not covered by the Financial Services Compensation Scheme (FSCS). Tax status is subject to individual circumstances and you should speak with a qualified tax advisor if you are unsure of your eligibility to invest. Please read the full risk warning on deciding to invest. Godwin Finance Ltd (FRN 819778 is an appointed representative of Share In Ltd (FRN 603332), which is authorised and regulated by the Financial Conduct Authority.