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  • FIRST POST
    • Yanling
    • By Yanling 10th Feb 18, 10:20 PM
    • 45Posts
    • 5Thanks
    Yanling
    Pension and Isa planning
    • #1
    • 10th Feb 18, 10:20 PM
    Pension and Isa planning 10th Feb 18 at 10:20 PM
    Hi, Thanks for you guys again, helping me pension plan.
    I am going to invest Isa in April. I can only invest pension and Isa. I am trying to plan ahead before I invest sipp.
    The question is that if i invest sipp with Cavendish at hsbc global strategy portfolio, should I invest isa with cavendish too? If yes, which portfolio could be better for me? Vanguard lifestrategy? Fundsmith equity fund? or?
    Cheers !
    Last edited by Yanling; 11-02-2018 at 3:29 PM.
Page 1
    • MallyGirl
    • By MallyGirl 11th Feb 18, 2:32 PM
    • 2,436 Posts
    • 7,433 Thanks
    MallyGirl
    • #2
    • 11th Feb 18, 2:32 PM
    • #2
    • 11th Feb 18, 2:32 PM
    Why not choose the same HSBC fund in both if you are happy with it?
    • Yanling
    • By Yanling 11th Feb 18, 2:58 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    • #3
    • 11th Feb 18, 2:58 PM
    • #3
    • 11th Feb 18, 2:58 PM
    Why not choose the same HSBC fund in both if you are happy with it?
    Originally posted by MallyGirl
    Hi,
    will it reduce the cost( fund manage fee and annual management fees) if I invest in the same portfolio with my pension and Isa?
    https://www.cavendishonline.co.uk/investments/fund-research/
    Last edited by Yanling; 11-02-2018 at 3:31 PM.
    • Linton
    • By Linton 11th Feb 18, 3:56 PM
    • 9,010 Posts
    • 9,088 Thanks
    Linton
    • #4
    • 11th Feb 18, 3:56 PM
    • #4
    • 11th Feb 18, 3:56 PM
    Hi,
    will it reduce the cost( fund manage fee and annual management fees) if I invest in the same portfolio with my pension and Isa?
    https://www.cavendishonline.co.uk/investments/fund-research/
    Originally posted by Yanling
    No - Pensions and ISAs are different "people". And fund charges are based on a % of value. So it doesnt matter whether the funds are held in several small tranches or one large one.

    The advantage of having common funds across both ISAs and pensions is purely to minimise the effort required to manage them. If your ISAs and pensions are both intended for long term investment presumably a sensible portfolio for one would also meet the needs of the other.
    • Yanling
    • By Yanling 11th Feb 18, 5:16 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    • #5
    • 11th Feb 18, 5:16 PM
    • #5
    • 11th Feb 18, 5:16 PM
    No - Pensions and ISAs are different "people". And fund charges are based on a % of value. So it doesnt matter whether the funds are held in several small tranches or one large one.

    The advantage of having common funds across both ISAs and pensions is purely to minimise the effort required to manage them. If your ISAs and pensions are both intended for long term investment presumably a sensible portfolio for one would also meet the needs of the other.
    Originally posted by Linton
    Hi, I thought it could reduce the risks if I choose not the same portfolio for person and Isa. Does that make sense?
    If yes, I am looking at Hsbc Global strategy balance portfolio Acc, VLS 60% Equity Acc, Fundsmith Equity Fund I Class Accumulation for person and isa, which means one of them will not be used.
    What would you think of Fundsmith Equity Fund I Class Accumulation ?
    Many thanks
    Last edited by Yanling; 11-02-2018 at 5:20 PM.
    • Linton
    • By Linton 11th Feb 18, 6:12 PM
    • 9,010 Posts
    • 9,088 Thanks
    Linton
    • #6
    • 11th Feb 18, 6:12 PM
    • #6
    • 11th Feb 18, 6:12 PM
    If you are investing in broadly based fund like the HSBC or VLS ones there really isnt any risk that would seriously affect one and not the other. Other than marginal effects which ever one you chose wouldnt matter much.

    Fundsmith Equity is very different. It is equity (shares) only and deliberately invests in a relatively small number of mainly US and UK companies in a restricted range of industries that the fund manager particularly likes. Each constraint adds to the risk that some economic event could affect the fund particularly adversely. Plus you are completely dependent on the choices made by the manager. On the other hand it has performed well since it started. So I think it would be fair to categorise it as higher risk/higher return compared with the other two and certainly not an alternative.
    • Audaxer
    • By Audaxer 11th Feb 18, 9:42 PM
    • 898 Posts
    • 495 Thanks
    Audaxer
    • #7
    • 11th Feb 18, 9:42 PM
    • #7
    • 11th Feb 18, 9:42 PM
    I don't think there is anything wrong with having both VLS60 and HSBC Global Strategy Balanced, especially if it is a large amount you are investing. Both have had similar returns since launched. VLS60 has a fixed allocation, more UK equity, more Treasury bonds than corporate bonds whereas HSBC GS Balanced had a lot less UK equity, more corporate bonds, some property and has an actively managed allocation. I don't think one is better than the other, so no harm to have both funds rather than all your eggs in the one basket.

    I don't see the point of also having Fundsmith which is 100% equity and fits more in a diversified single sector portfolio, whereas both the above are multi asset funds.
    • Yanling
    • By Yanling 11th Feb 18, 9:59 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    • #8
    • 11th Feb 18, 9:59 PM
    • #8
    • 11th Feb 18, 9:59 PM
    Can I invest some Isa money to one portfolio and the rest of Isa money to another portfolio?
    I see fundsmith runs quite well, would like to take a little risk to it.
    Thanks
    • MallyGirl
    • By MallyGirl 11th Feb 18, 10:07 PM
    • 2,436 Posts
    • 7,433 Thanks
    MallyGirl
    • #9
    • 11th Feb 18, 10:07 PM
    • #9
    • 11th Feb 18, 10:07 PM
    You can hold multiple funds (Id avoid use of the word portfolio when referring to a single fund) in an ISA
    • Yanling
    • By Yanling 11th Feb 18, 10:13 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    You can hold multiple funds (Id avoid use of the word portfolio when referring to a single fund) in an ISA
    Originally posted by MallyGirl
    why? a bit more cost?
    • Yanling
    • By Yanling 11th Feb 18, 10:21 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    Is it legal or Government allows me to invest Isa into two portfolios ( such as VLS and Fundsmith) up to Isa allowance?
    • Alexland
    • By Alexland 11th Feb 18, 10:21 PM
    • 1,576 Posts
    • 1,083 Thanks
    Alexland
    To keep fees low I would suggest you consider Vanguard Investor for the ISA as the platform fee is only 0.15% (they don't do SIPPs yet) and Cavendish/HSBC for the SIPP.

    Fundsmith has done well but you might have missed the boat on that small set of shares.
    Last edited by Alexland; 11-02-2018 at 10:24 PM.
    • MallyGirl
    • By MallyGirl 11th Feb 18, 10:21 PM
    • 2,436 Posts
    • 7,433 Thanks
    MallyGirl
    I think you need to be very careful to get your terms right. You can only contribute to one ISA in a year so if you want to buy 2 different funds in the same year then they need to be in the same ISA.
    • MallyGirl
    • By MallyGirl 11th Feb 18, 10:23 PM
    • 2,436 Posts
    • 7,433 Thanks
    MallyGirl
    Is it legal or Government allows me to invest Isa into two portfolios ( such as VLS and Fundsmith) up to Isa allowance?
    Originally posted by Yanling
    Up to the 20,000 limit in a year you can buy any combination of funds that the chosen platform offers.
    • Yanling
    • By Yanling 11th Feb 18, 10:46 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    To keep fees low I would suggest you consider Vanguard Investor for the ISA as the platform fee is only 0.15% (they don't do SIPPs yet) and Cavendish/HSBC for the SIPP.

    Fundsmith has done well but you might have missed the boat on that small set of shares.
    Originally posted by Alexland
    Good idea.
    Thanks all
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