How it works

How do stock market investments work?

Our UK FTSE All-Share ISA invests your money in shares of the 600+ companies that make up the FTSE All-Share Index. If these companies are profitable their share prices tend to rise. Many companies also pay out regular dividends to shareholders. These two factors can both increase the value of your investment. However, you should remember that if the value of the shares goes down, so will the value of your investment and you could get back less than you invested.

How it works

How do we invest in the stock market?

The great appeal of index tracking is that it’s one of the simplest ways to benefit from the stock market, making the most of its historic long-term growth. It works on the principle that when share prices move, you automatically ‘keep track’.

With our tracker fund your investment gets spread across the shares of every one of the 600+ companies listed on the FTSE All-Share Index, ensuring that your investment keeps track with it every step of the way.

As you can see from the graph below, the performance of the All-Share Index has fluctuated over time, affecting the value of any investment. You therefore need to be prepared to experience these ups and downs in the future, and to think about the timing of when you choose to invest or withdraw your money.

To help illustrate the long term potential of the fund, the graph also shows you that an investment of £3,000, made in March 1995, would have increased in value to £10,729 on 30/09/15.

Graph illustrating how £3000 invested in March 1995 would have increased in value to £10,729 on 30 September 2015

Source: Morningstar Direct, 03.03.95 - 30.09.15, calculation based on bid to bid unit prices, net of basic rate tax with income reinvested.

Remember, past performance is not a reliable guide to the future. The value of investments can go down as well as up and you may get back less than you invest.

How has the fund performed over each of the last five years?

If you had invested £3,000 on 1 October 2010 in the Virgin UK FTSE All-Share ISA, it would be worth £3,948 after charges on 30 September 2015. Here is a table showing the returns you would have got from this fund in each of the last five years.

Virgin UK Index Tracking Trust performance over the last 5 years
01/10/2010 to 30/09/201101/10/2011 to 30/09/201201/10/2012 to 30/09/201301/10/2013 to 30/09/201401/10/2014 to 30/09/2015

Source: Morningstar Direct, 01.10.10 to 30.09.15, calculation based on figures in £’s, on a bid to bid basis, net of basic rate tax with income reinvested.

How it works

Dividend payments and how they benefit you:

There are two ways you can potentially get a return on your investment with the Virgin UK FTSE All-Share Fund. One is through an increase in the overall value of the funds it invests in and the other is through income the fund receives from the shares it holds.

Twice a year, the fund also collects income on your behalf from company shares it holds. If you’re aiming to grow your money, you can opt to have this income reinvested when you apply for the fund. If you’re investing for income, you can choose to have it paid out to you.

You can switch between reinvesting and receiving income whenever you like.

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