Stocks & Shares ISA Advise - Sterling

alchemistkevin

I have some money to invest in the Stocks & Shares ISA and have been advised to put my money in through Sterling into the either (or more than one) of following funds that I can select and change at anytime.

Schroder UK Alpha Plus, Invesco Perpetual High Income, AEGOn Ethical Equity

TAM Latin America, JPM Natural Resources, TAM UK SMall Companies, SG Japan Core Alpha, Gartmore China Opportunities.


Does anyone have info on what's the better fund to go for or how many shall I be buying so as not to pay a lot in fees (I have no idea how it's calculated) and get the most for my money.

Any advise will be appreciated.

dunstonh

I am going to guess that you are buying this product through a Zurich sales rep. They are not allowed to portfolio build so put the fund choice in your hands. An IFA would be making the fund choices for you so it cant be an IFA.

Does anyone have info on what's the better fund to go for or how many shall I be buying so as not to pay a lot in fees (I have no idea how it's calculated) and get the most for my money.

Charges are not dependent on the number of funds you use. You have a £25 per fund minimum so diversification should be utilised. The spread should average out to match your risk profile. The selection there is very high risk.

I suggest that if you do need advice, dump the sales rep and see an IFA. At worst the charges will be no different. Possibly lower. However, the IFA will be able to advise on the funds selected and not put that choice in your hands.

cheerfulcat

alchemistkevin wrote: »

Any advise will be appreciated.

Why buy a dog and bark yourself? Either get a self-select ISA and choose your own funds or get an IFA and let him or her do the choosing.

No opinion on the funds except that it looks a slightly odd selection, and very restricted.

alchemistkevin

I am not sure I understand the word restricted above and as far as the selection is concerned, they were drawn up as the best performing funds based on my attitude to risk.

One of my friends works for a company that are a part of Operwork Ltd and did an attitude to risk profiling that put me up to adventurous, the first set of options are for that attitude and the 2nd list is if I'm feeling speculative.

I'm not sure if I want to go to an IFA right now if these funds are ok. I just want to invest up to my ISA allowance. Also, I'd rather give my business to someone I know...

dunstonh

I am not sure I understand the word restricted above and as far as the selection is concerned, they were drawn up as the best performing funds based on my attitude to risk.

The diversification isnt ideal. It smacks a bit of fashion investing by picking some areas that have done well in recent times rather than giving proper balance.

Openwork a panel based salesforce. In which case I would check the charging structure as Sterling allow the firm to set their own charges almost which can be as much as double the other fund supermarkets. Especially where regular is concerned.

Take a look at your illustration. If the remuneration to the sales rep is more than 3% per monthly contribution then it is exceeding the typical maximum. As its a friend who is doing it, you would expect to be somewhere closer to the typical average which is 1.8% of each contribution.

alchemistkevin

Thanks

I've been reading some of your other posts and almost all of them are real gems

I haven't looked at the illustration nor have I picked up any funds to invest in.

I have signed a sheet of paper though and handed him a cheque that he will bank after I select the funds and think its the right time to invest.

You are spot on with 'fashion' investing - these funds have been quite hot over the past 3/5 years but the last year had not been so good.

What I didn't realize before reading your other posts was: there would be a fee on what I pay in to the tune of 4.75% - which means to make 5.75% tax free (a comparison figure to 7% taxable interest accounts available) my money will need to make more than 11.5% before I seem to making money close to what a savings account will.

Is an ISA worth it in these times then, especially with such market volatility and the risk that I'm taking?


Thanks once again