Suppose I have already maxed out my 2017 ISA, and I now have a further £20k that I would like to invest. The financial year will end in 4 months (April 2018), at which point my ISA will be open for a further £20k allowance.
I have two options:
- Invest this £20k now into fund X
- Wait until April to invest the £20k into fund X wrapped by the ISA
If we assume fund X has an arbitrary fixed interest rate (say 0.5% or 1% per month for easy math), and considering the tax-free advantage of the ISA vs the 4 months headstart of investing now, which option will net me more money?