The value of the investment can go down as well as up and you may not get back as much as you put in.

Strictly speaking an ISA is not actually an investment product, although it often gets confused with one. It is just a tax-free wrapper that sits around a fund like a unit or investment trust.

Like you, we quite like paying less tax. So there’s a good chance that whatever we decide makes a good first investment, we’ll want to protect it in an ISA.

Unit Trusts, OEICs, ETFs and Investment Trusts

These are all types of funds that predominantly invest in shares. Some of them may invest in a particular industry, country or region whilst others will invest in the whole market. They are also responsible for most of the colourful adverts in the weekend papers. These are the most flexible type of product, allowing you to get your money out at any time.