How do you choose? Comparing four investment products
Compare Kupat Gemel LeHashkaa, savings policies, managed portfolios and self-managed investment portfolios.
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- 3 minutes
- Last updated
How should you read the table?
The table brings together the differences among several investment products. Remember that no single product wins in every situation; the right product depends on your goal, needs and character as an investor.
- Your level of control: Notice the difference between self-management, which gives you complete control, and a 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., where an external professional body manages the money.
- The tax line: This is one of the most significant considerations. Products that allow tax deferralThe ability to pay capital gains tax only when money is withdrawn from the plan, rather than when the gain is generated.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 a transfer between providers without tax keep your money invested in the market over time instead of sending part of it to the tax authority whenever you make a change.
- The fine print: Pay attention to contribution ceilings and fees. A product that appears attractive because of the way it is managed may be less worthwhile because of trading costs or a limit on the amount you can deposit.
Comparing four investment products
| Feature | Kupat Gemel LeHashkaa | Savings policy | Managed portfolio | Self-management |
|---|---|---|---|---|
| Who manages the money? | A professional body | An insuranceA contract under which an insurance company undertakes to compensate the insured in the event of damage in exchange for a periodic payment. company | A portfolio manager | The investor |
| Investor control | Moderate | Moderate | High | Full |
| Liquidity | Full | Full | Full, subject to selling assets | Full, subject to selling assets |
| Tax deferral | Yes | Yes | No | No |
| Tax events | Only upon withdrawal | Only upon withdrawal | Upon sale | Upon sale |
| Retirement tax benefit | Yes, when withdrawn as a tax-exempt pensionA monthly payment made to a person after retirement from work in order to help maintain their standard of living. | No | No | No |
| Moving between providers | Yes, without tax | Requires realizing the investment | Requires realization or transfer | Free |
| Contribution ceiling | An annual ceiling applies | None | None | None |
| Costs | Moderate | Moderate or high | Moderate or high | Low |
| Who may find it suitable? | Someone seeking a flexible medium- or long-term investment | Someone seeking a flexible managed investment with no ceiling | Someone seeking personal customization | Someone who wants complete control |
Compare and choose carefully
Before choosing a savings policy or Kupat Gemel LeHashkaa, examine the products, costs, performance and investment tracks offered by different providers.
Comparing offers—Kupat Gemel LeHashkaa
Before choosing a Kupat Gemel LeHashkaa, compare the offers from different providers, including management fees, investment tracks, joining terms and additional services.
Comparing offers—savings policy
Before choosing a savings policy, compare the offers from different providers, including management fees, investment tracks, joining terms and additional services.
Comparing offers—managed investment portfolio
Before choosing a managed investment portfolio, compare the offers from different providers, including management fees, minimum investment amounts, investment tracks, joining terms and additional services.
Comparing offers—self-managed investment portfolio
Before opening an investment portfolio, compare the offers from banks and investment houses, including trading commissions, management fees, minimum deposits, available markets, trading systems and additional services.