How to Choose: A Comparison of 4 Investment Products
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How do you read the table?
The table below summarizes the differences between the various investment products. It is important to remember that no single product is best in every situation; rather, the right product depends on your goals, needs, and investor profile.
- Your level of control: Note the difference between self-management, which gives you full control, and Kupat Gemel LeHashkaa (קופת גמל להשקעה)A flexible savings vehicle that allows withdrawal at any time, or receipt of a tax-exempt pension after age 60., in which the money is managed by an external professional entity.
- The tax line: This is one of the most significant components. Products that allow Tax deferralThe ability to pay capital gains tax only when money is withdrawn from the plan, rather than when the gain is generated. or transfers between entities without tax keep your money invested in the market over time, rather than having part of it transferred to the tax authority with every change.
- The fine print: Pay attention to Contribution limitsThe maximum amounts that may be deposited into certain savings products in order to receive tax benefits. and fees. Sometimes, a product that appears attractive in terms of how it is managed may be less worthwhile because of buying and selling costs or a limit on the amount that can be deposited.
Comparison of Four Investment Products
| Feature | Kupat Gemel LeHashkaa (קופת גמל להשקעה) | Polisat Hisachon (פוליסת חיסכון) | Managed Portfolio | Self-Management |
|---|---|---|---|---|
| Who manages the money | Professional entity | InsuranceA contract under which an insurance company undertakes to compensate the insured in the event of damage in exchange for a periodic payment. company | Investment manager | The investor |
| Investor control | Moderate | Moderate | High | Full |
| Liquidity | Full | Full | Full, subject to sale | Full, subject to sale |
| Tax deferral | Yes | Yes | No | No |
| Tax events | Only upon withdrawal | Only upon withdrawal | Upon sale | Upon sale |
| Tax benefit at retirement age | Yes, when withdrawn as an exempt pensionA monthly payment made to a person after retirement from work in order to help maintain their standard of living. | No | No | No |
| Transfers between entities | Yes, without tax | Requires liquidation | Requires liquidation or transfer | Freely |
| Contribution limit | An annual limit applies | None | None | None |
| Costs | Moderate | Moderate or high | Moderate or high | Low |
| Who it is suitable for | Those seeking a flexible medium- or long-term investment | For those seeking a flexible, managed investment with no contribution limit | For those seeking a personalized solution | For those who want full control |
Compare and choose wisely
Before choosing a Polisat Hisachon (פוליסת חיסכון)An investment product managed by insurance companies, offering full liquidity and the ability to switch between investment tracks without creating a taxable event. or Kupat Gemel LeHashkaa (קופת גמל להשקעה), it is worth reviewing the table we created for you, based on Capital Market Authority data, and comparing which provider offered the highest returns and the lowest management fees.
Comparing offers — Kupat Gemel LeHashkaa (קופת גמל להשקעה)
Before choosing a Kupat Gemel LeHashkaa (קופת גמל להשקעה), it is worth comparing offers from different providers. In the table we created for you, we compiled the management fees, investment tracks, joining terms, and additional services offered by each provider to help you choose the offer best suited to your needs.
Comparing offers — Polisat Hisachon (פוליסת חיסכון)
Before choosing a Polisat Hisachon (פוליסת חיסכון), it is worth comparing offers from different providers. In the table we created for you, we compiled the management fees, investment tracks, joining terms, and additional services offered by each provider to help you choose the offer best suited to your needs.
Comparing offers — Managed investment portfolio
Before choosing a managed investment portfolio, it is worth comparing offers from different providers. In the table we created for you, we compiled the management fees, minimum investment amount, investment tracks, joining terms, and additional services offered by each provider to help you choose the offer best suited to your needs.
Comparing offers — Self-managed investment portfolio
Before opening an investment portfolio, it is worth comparing offers from different banks and investment houses. In the table we created for you, we compiled the trading commissions, management fees, minimum deposit amount, available markets, trading platforms, and additional services offered by each provider to help you choose the trading account best suited to your needs.