- Managed funds - designed to provide steady rather than spectacular growth by investing in a range of different asset classes, including property, cash, fixed interest and different types of equities.
- With profits funds - also invest in a broad range of asset classes, but the fund value does not go up and down in line with the underlying investments. Instead, returns are smoothed by adding bonuses, with some of the surpluses from good years being held back to subsidise bad years.
The range of funds available can run into the hundreds, allowing you to create a widely spread portfolio within a MIP.
Once you have chosen your MIP funds, you can switch between them when you feel it is appropriate and alter where future contributions will be invested. Most providers permit such changes to be made at minimal or nil cost.Last Updated
