ISA advice

justasking_3

Hi All

I am trying to decide whether to invest in a cash ISA or a FTSE 100. I have looked at some of the products on the market and to be honest I haven't a clue. I do think that the FTSE100 is lower than it's current value of 3500. I'm not suggesting that it is worth the 6300 it was at one point. So my questions are:

1) I like the Halifax FTSE tracker. Do you think it's a good product?

2) If the FTSE was to rise to say 4500 does it mean the investment would rise by 30%?

Any help or advice is much appreciated.

JoeCrystal

Cash ISA. You do not lose it. Unlike Index tracker. But as it is, I will leave it to others to explain why Index is either good or bad idea. Personally, I do not like it as you can have large loss.

bigheadxx

If you are in it for the long term then Index Tracker. Drip feeding money into a falling market means that you are buying more units for the same amount of money each month. When the market rises, as it will one day (if it doesnt then it will mean that civilisation as we know it has come to an end) you have the potential to have substantially increased your capital by far more than cash.

Aegis

justasking wrote: »

Hi All

I am trying to decide whether to invest in a cash ISA or a FTSE 100. I have looked at some of the products on the market and to be honest I haven't a clue. I do think that the FTSE100 is lower than it's current value of 3500. I'm not suggesting that it is worth the 6300 it was at one point. So my questions are:

1) I like the Halifax FTSE tracker. Do you think it's a good product?

2) If the FTSE was to rise to say 4500 does it mean the investment would rise by 30%?

Any help or advice is much appreciated.

Have you considered options in between those two in terms of risk, or at the very least diversifying away from just the FTSE?

justasking_3

Thank you for the advice. I have looked at other options but it all seems a bit confusing which is why I suggested the Halifax option.

When you say diversifying away from the FTSE. Can you give me a little more information about other trackers please? or point me in the right direction please

a7man

You could try the fidelity moneybuilder all share tracker. 0.1% AMCs and free to switch in and out.

There are other options involving different funds which will invest in different things depending on their objective.

Newton Balanced Managed for example in the last year has only dropped 10.5%, where the sector is down over 25% in the same period.