LISP…Your one stop investment shop

A linked investment service provider (LISP) is probably one of the lessor understood investment vehicles. Most investment houses have them and have been around for a while.

What are they?

They are investment platforms which offer access to a universe of investment options from shares, to ETF’s and Unit Trusts. They provide all the investment policies such as endowments, retirement annuities and preservation funds. So you can invest in, say, an endowment with a LISP provided by Momentum and choose from a variety of funds from Old Mutual, Sanlam and Liberty Life.

The advantages of a LISP

1. One administration

You have one application and one statement for a variety of investments providing a ‘one stop shop’ without placing all your eggs in one basket.

2. Switching funds

You can easily change your funds with having to change your policy. Policies have terms and conditions in their contract which affect the payment. If you change your policy prematurely then you could lose benefits. You can keep the policy at the LISP and simply change to funds with another company maintaining the benefits.

3. Fees

Most LISPs offer a discounted fee structure based on the value of your investments on their platform. This may save you a sizeable amount over time compared to saving directly with a number of different companies.

The financial services world is complex and it pays to simplify. A LISP provides an easy and simplistic solution. Speak to your advisor.

Hear more from the audio below...

Read more from Paul Roelofse at www.investforlife.co.za


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