Ersel offers the possibility of investing in Individual Savings Plans (PIR), a form of investment introduced in 2017 which not only guarantees tax concessions for participants but represents a form of long-term support for small and medium Italian enterprises and stimulates the country’s economic growth.
What are individual savings plans
Individual savings plans (PIR) are “tax containers”, accounts which can contain different financial instruments (mutual funds, securities, insurance policies, liquid cash), which must be subject to certain investment constraints.
Individual savings plans allow exemption from income taxes deriving from financial instruments included in the container (equal to 26%) and the exclusion of said instruments from inheritance taxes.
The tax benefit is augmented by the potential upside of the Italian equity market thanks to positive flows stemming from the initiative, with the possibility of bridging the valuation difference with respect to other European markets.
The beneficiaries are normally natural persons residing in Italy.
With the Ersel PIR account, the customer can:
- Invest in Ersel’s PIR-compliant funds, Fondersel PMI and Leadersel PMI HD. The first one is Ersel’s historic ‘Italia’ (Italy) equity fund, among the best products in its category and the recipient of a number of awards over the years for its consistent results. Leadersel PMI HD is a flexible programme that invests in Italy shares with variable exposure of between 0 and 100% and that, at the moment in which the market conditions call for it, activates coverage through futures that reduce the risk of significant losses and mitigate volatility.
- Access a broader investible universe with respect to the single subscription to a PIR fund, allocating up to 30% of the investment to non-PIR funds that can invest in different asset classes, strategies and markets. The maximum investible amount per individual fund is equal to 10% of the capital.
The benefit of exemption from capital gains tax and inheritance tax extends to the entire portfolio held in the PIR account, and is not limited to the PIR fund.
Restrictions on investments
- Each natural person can invest a maximum of Euro 30,000 per year in PIRs, up to a total limit of Euro 150,000.
- A necessary condition for exemption from tax is that the instruments in which the plan is invested are held for at least 5 years.
- Each natural person can hold only one savings plan.
- In each calendar year of duration of the PIR, for at least two thirds of said year, at least 70% of the sums or securities intended for the PIR must be invested in financial instruments (also unlisted) issued by companies residing in Italy that carry out non-real estate activities.
- A total of 70% must be invested for at least 30% of the total value in financial instruments of companies other than those included in the FTSE MIB index.