Tracker Funds

Index Tracker Funds 0% initial charge - 100% hassle free

If you're looking for a straightforward, low-cost way to invest in the stock market this is it. Our low cost FTSE 100TM Tracker Fund allow you to take advantage of the full growth potential of the 100 largest companies listed on the London Stock Exchange, without having to manage your own investment. You can choose to invest directly, or tax-efficiently through an ISA - and because your money will be invested in a wide variety of shares, you'll be spreading your risk (compared to holding single company shares). 

Take advantage of market growth

Your investment aims to track the FTSE 100tm, a major stock market index including household names such as Tesco, BP and Vodafone, so you’ll be investing in companies you are likely to know. So when share prices go up, your investment should follow. Historically, the stock market has outperformed most other types of investment over the long term. Please remember that past performance is not a guide to future performance and the value of your investment can fall as well as rise.

Low-cost and flexible

Our FTSE 100TM Tracker Fund is a very low-cost way to share in the potential of the market. There is no initial charge and the annual management charge is very competitive. You can also make withdrawals at any time or move your investment to another provider.

Invest tax-efficiently via an ISA

The fund allows you to invest using an ISA wrapper, which protects your returns from Capital Gains Tax and Income Tax.

You can start your tax-efficient investment with just £500.

You can top up with lump sums of £200 or more, or invest regularly from £30 a month. If you have an existing Stocks and Shares ISA that's worth £500 or more with another provider, you can transfer it into a FTSE 100TM Tracker Fund.

Invest Directly - if you have already used this years ISA Allowance or for larger sums

If you've already used your ISA allowance for this year, or would like to pay in larger sums, you can invest directly into the Funds. You can invest lump sums from £1,000 or regularly from £30 per month.

Direct investments are not liable for Income Tax. You may have to pay Capital Gains Tax on any gains that you have made when you cash in your shares. This might be payable if you sell your investment and make a profit (a gain), however, you could minimise any Capital Gains Tax liability by using your Capital Gains annual exemption in the year that you wish to cash in your investment.

Start your investment

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Show me common questions about the Index Tracker Funds

• Can I invest via an ISA?
• Can I transfer in an existing ISA?
• How much can I invest?
• Does the investment grow tax-free?
• Do I have to invest for a set length of time?
• Is my capital protected?
• Are there any charges?
• How will I know how my investment is performing?
• How do I know whether this investment is right for me?
• When will my money be invested?
• What if I change my mind after applying?

Can I invest via an ISA?
Yes. You can invest tax-efficiently via a Stocks and Shares ISA up to your annual ISA limit. If you do this, your investment will be in an ISA wrapper and you will not pay tax on any returns. If you have already used your ISA allowance for the year, or want to invest more than this amount, you can invest directly.

Can I transfer in an existing ISA?  
Yes. If you have an existing ISA worth £500 or more with another provider, you can simply transfer the full amount directly into the FTSE 100TM Tracker Fund. Our Financial Planning Direct team will be able to guide you through this simple process.

How much can I invest?
If you are investing directly (not via an ISA) there is no maximum limit to your investment. You can start your Index Tracker Fund with any amount from £1,000. Then you can pay in regular monthly amounts of £30 or more, or top up your investment with lump sums of £1000 or more.

If you are investing via an ISA, you can pay in up to your Stocks and Shares ISA limit. You can start your Index Tracker Fund with any amount from £500 or regular payments from £30 per month. You can also top up your investment with lump sums of £200 or more.

Does the investment grow tax-free?
If you have invested via an ISA, or transferred in an existing ISA, any growth and withdrawals will be free from Income Tax and Capital Gains Tax and you can transfer your whole ISA to another manager at any time without losing any relief.

If you are investing direct (not via an ISA) you may have to pay Capital Gains Tax on any gains that you have made when you cash in your shares. This might be payable if you sell your investment and make a profit (a gain), however, you could minimise any Capital Gains Tax liability by using your Capital Gains annual exemption in the year that you wish to cash in your investment.

Do I have to invest for a set length of time?
No. You can take out your money whenever you want to, as this is a stock market investment, this is best viewed as a medium to long term investment so you should be prepared to invest for a minimum of five years. If you do want to withdraw some or all your money, there is normally* no charge and it is simple to arrange. To make a withdrawal and keep your investment open, you just need to keep a minimum balance of £50 in the Funds.

* We may in exceptional circumstances apply a Dilution Levy - see the RBS Index Tracker Funds Key Features Document for full information. This is available from Financial Planning Direct.

Is my capital protected?
The RBS Index Tracker Funds do not protect your capital. Your money will be invested in the stock market and the value of your investment will rise and fall broadly in line with the Index you have chosen. This means that you may get back less than you have paid in. If you want an investment that protects your capital and offers you the opportunity to share in stock market growth our Financial Planning Managers will be able to discuss options with you. Just call us and we will make an appointment at a convenient time for you.

Are there any charges?
This is a low-cost investment, with no initial charge, no charge for withdrawals and no charge for switching to another provider. There is simply a 1% annual management charge, which is worked out daily at the close of business.

How will I know how my investment is performing?
We will send you a statement and valuation for your investment every six months, in January and July. You can also get an up-to-date valuation at any time by calling us on 0845 300 2585. Our Fund prices are also quoted daily in the Financial Times and The Daily Telegraph.

How do I know whether this investment is right for me?
The FTSE 100 Tracker invests in a selection of the largest 100 companies listed on the London Stock Exchange, including household names such as Tesco, BP and Vodafone. This fund may be suitable for investors who want to invest in the UK's leading blue-chip companies.

The RBS Index Tracker Funds are suitable for new or experienced investors who want to take advantage of stock market performance, while spreading their risk by investing in a wide range of stocks (compared to holding single company shares) . As with all stock market investments, you need to be prepared to invest for a minimum of five years. You need to be 18 or over to invest in these Funds, but can invest for a child if you wish. Your capital is not protected so, if stock markets fall, you may get back less that you paid in.

To help you decide whether the RBS Index Tracker Fund is right for your needs, please make sure that you have read the Key Features and Terms and Conditions (PDF, 256kb) before applying. If you are unsure about whether this investment is suitable for you Financial Planning Direct can book an appointment with one of our financial advisers who can look at other investments for you and provide advice (they cannot give advice on these funds).

When will my money be invested?
It will be invested on the day we receive your cheque, or on the following working day if your cheque arrives on a Saturday, Sunday or after 2pm.

What if I change my mind after applying?
There is no 'cooling off' period with this investment. This means that, if you have sent us a cheque and then change your mind, the amount of money you will get back will depend on the value of your holding on the day we receive your instruction to sell.

Provided by RBS Collective Investment Funds Limited.

Registered in Scotland No. SC46694. Registered Office: 24/25 St Andrew Square, Edinburgh, EH2 1AF.

Authorised and Regulated by the Financial Services Authority.

FTSE and Footsie are registered trademarks of the London Stock Exchange Limited and the Financial Times Limited ("FT") and are used by FTSE International Limited ("FTSE") under license. The shares in the RBS FTSE 100TM Tracker Fund are not in any way sponsored, endorsed, sold or promoted by FTSE or by the London Stock Exchange or by the FT and neither the FTSE nor Exchange nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE 100TM Index and the figure at which the said Indexes stand at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Indexes and neither FTSE or Exchange or FT shall be under any obligation to advise any person of any error therein.

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