ISA Portfolio Advice

Demologic

My current situation is as follows, I am a student with a part time job with significant cash savings, of approximately £18,000, most of which is in the Egg 6.3% instant access fixed rate account. I have used this years cash ISA entitlement, and now I want to invest the reaming £3,600, as I feel this is a good time to invest. I may also invest more next tax year.

I have opened an HL vantage ISA account, which i put £3,600 into. After reading this forum for a couple of months, i have created a draft list of funds. Funds in bold, are my current favorites. Reading various threads i believe it is possible to invest less than £1,000 in individual funds by phone with HL.

Artemis Income Acc
INVESCO PERPETUAL Monthly Income Plus Acc
Cazenove UK Absolute Target Class P1 Acc
Neptune Global Equity Fund A Acc
Jupiter Financial Opportunities Inc
Allianz RCM BRIC Stars A Acc

CF Arch Cru Investment Portfolio A
INVESCO PERPETUAL Corporate Bond Acc
INVESCO PERPETUAL High Income Acc
BlackRock UK Absolute Alpha Class P Acc
Jupiter Merlin Worldwide Portfolio Acc
Jupiter Merlin Growth Portfolio Acc
M & G Global Basics Class X Acc
M & G Global Leaders Class X Acc
Marlborough ETF Commodity Fund Acc
Among others....

What are your thoughts on this draft portfolio ?
Are there too many funds for just £3,600 ?
Are there other sectors which I should invest in ?
.....

Thanks in advance

alaneg

I will not presume to advise you as to the funds into which you should invest, but bear in mind the tax implications of investing in a stocks and shares isa.
The only advantage of investing in funds which invest in shares is the freedom from capital gains tax liability when the fund is sold and at the figures you are considering this should not be a problem. If you invest in bond funds the tax paid can be reclaimed. For example the Artemis Income Fund pays the income as a dividend so no tax refund, whereas the Invesco Perpetual Monthly Income Plus, pays the income as interest so tax can be reclaimed. Look on the H/L site for each fund and check if the type of payment is dividend or interest.

Lokolo

We can't really advise you on how good it is or whatever because it leaves us with risks for providing providing financial advice!

However, what I will suggest, if you want, is go to an online place like morningstar, add those funds to a virtual portfolio and then use portfolio x-ray and it will tell you where you've invested most of your money etc. then, if you are happy with this then go for it.

Finally - although I am sure you know, you seem to be savvy enough - only invest money you can afford to lose.

However I am sure dunstonh will come along with a few words of wisdom (and donut will come along and tell him he's wrong)

cloud_dog

Lokolo wrote: »

However I am sure dunstonh will come along with a few words of wisdom (and donut will come along and tell him he's wrong)

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

fimonkey

ah something I hadn't considered and is a new concept for me.

I presumed investments always paid 'interest', the amount of which would change dependant upon the investments performance, and that holding these investments in an S&S ISA meant this interest was gross.

I also presumed a 'dividend' was the same as receiving interest 'yearly', and in the same way you can either take this interest or reinvest it, so you could with a dividend too.

I'm obviously way off the mark!!! Back to primary school for me then.

Lokolo

Acc = Accumlation, so any money that the fund gets from dividends from companies it has invested in goes back into the fund, hopefully meaning the value of the fund rises.

Inc = Income, any dividends are saved and stuff then given out to people that have invested in the fund.