Advice on stocks & shares ISAs?

rangers_fc

My personal preference is to by ITs at a discount

Do you think the additional risk of gearing in an investment trust is worth paying as opposed to investing into say a similar OEIC or unit trust?

Going off topic sad or happy about big Eck?

Maybe time for a change at Rangers however it now a job for the new manager to reschuffle

schiff

I'm used to seeing this sort of thread (unfortunately) on advfn, moneyAM, etc where the professionals are always eager to trade insults (thankfully not on all the threads) but it's sad that this particular discussion (and on this particular normally sober website) has descended to such a level.

I don't really know what to suggest except to pack it in. Poor flashf must wonder what on earth he's started up!!

Deemy

rangers_fc wrote:

Some good rises there Deemy its easy to see gains in a rising market but harder to find good buys. Will the current market rises continue, I would be tempted to buy now, however which way are the markets likely to go? say I buy today and the market loses 10% ITs will drop in value making a good buying opportunity, however say I hold of and the markets continue to rise the Trusts are going to cost more to buy. Its a dillema that often drives me bananas or makes me sit on the fence and do nothing

Hi

Virtually all of the above trusts I referred to as good investments over a year ago or in into March 2005 , YES They can and WILL have corrections and likely the correction can be quite severe, but the thing is to keep ones eye on the long-term

At the moment I'm actually heavy in cash as I have sold ALL of my individual shares, as I am guessing the market will go through a tough next 6 months or so, I may be right or I may be wrong, but i will still HOLD the IT's regardless. 10%, 20% drop is nothing in the big scheme of things...

So Yeh if the market fell I would be ADDING ! - Probably DOUBLING my holdings

If I did not hold ANY IT's now and say my portfolio was 100% cash - I would commit 15% of my portfolio NOW, to the IT's as even a 20% drop would only dent your overall portfolio by just 3%.. So I would be prepared to ride out any correction as offcourse like you say the correction may not happen until after they soar some more

Deemy

schiff wrote:

I'm used to seeing this sort of thread (unfortunately) on advfn, moneyAM, etc where the professionals are always eager to trade insults (thankfully not on all the threads) but it's sad that this particular discussion (and on this particular normally sober website) has descended to such a level.

I don't really know what to suggest except to pack it in. Poor flashf must wonder what on earth he's started up!!

So pack it in Yes a few of us, me included deserve a slap on the wrist and should pack it in

THOUGH .... I am watching ! ... :cool:

dunstonh

One of the biggest differences with ITs over OEICs is that ITs can borrow money. OEICs cannot. This makes them a riskier investment when compared to an OEIC in the same sector. If you accept that risk, the potential for growth can be higher but the potential for loss is greater too.

Another issue is that ITs are not regulated by the FSA and not covered by the Financial Ombusdsman Service or Financial Services Compensation scheme.

With no consumer protection and not being an authorised advice product, it falls outside most financial advisors scope of advice. That is why you do not see it mentioned by financial advisors much.

cheerfulcat

dunstonh wrote:

With no consumer protection and not being an authorised advice product, it falls outside most financial advisors scope of advice. That is why you do not see it mentioned by financial advisors much.

Interesting; that suggests that someone going to a financial advisor for advice is restricted in his or her choice of investments by the regulatory framework. Or is it a personal choice by the FA not to advise on products which are not authorised? A genuine question, not a pop at (I)FAs :A

whiteflag_3

cheerfulcat wrote:

Interesting; that suggests that someone going to a financial advisor for advice is restricted in his or her choice of investments by the regulatory framework. Or is it a personal choice by the FA not to advise on products which are not authorised? A genuine question, not a pop at (I)FAs :A

I can only answer for myself. In my experience it is both. IFAs are limited by their fsa permissions and they can also choose not to advise in any area they do not feel comfortable with or dont want to get involved with.

For example anyone looking for self cert mortgages from me are politely asked to look for another adviser.

Bear in mind all advisers also issue keyfacts outlining their services in full.

schiff

One of the most successful and best funds in recent years Marks & Spencer High Income Fund (investments in corporate and government bond issues world wide) is virtually never referred to in the press nor by financial advisers. The reason: it doesn't pay commission to intermediaries.

So FAs don't plug it because they don't get anything out of it and newspaper columns in the City pages are usually based on or use quotes from FAs.

I've been sticking my ISA allocation into this fund for years and am completely happy. The interest rate has come down from 8% to about 5.5% currently but there has been appreciable capital appreciation as well - not something I expected at the outset (the 8% was more than enough!).

I think it may be running out of steam a bit at the moment though. The interest rate is close to what you can get from banks and BSs and there has been a slight hiccup in the unit price these last few weeks. But I still favour it.

dunstonh

One of the most successful and best funds in recent years Marks & Spencer High Income Fund (investments in corporate and government bond issues world wide) is virtually never referred to in the press nor by financial advisers. The reason: it doesn't pay commission to intermediaries.

Maybe the reason is that it isn't available on any fund supermarket platform so can't be used in any portfolio planning and it is also closed for new business.

I've been sticking my ISA allocation into this fund for years and am completely happy.

Any IFA recommending the same fund for years ought to be struck off. Good job you can't be

schiff

dunston:

Can't respond to your first point - don't know enough about it!

Second point: I am not 'advised' about my finances - I always make my own decisions (which I prefer to handing my financial future to somebody else). But you wouldn't argue against sticking with a performer with which you are quite happy, would you?