What to put in a S&S ISA with some resonable risk

jfpeeps

I have a S&S ISA and I don't know what to put in to my S&S allowance which I belive is £3,600 (as the rest must be actual cash) I have other "safe" investments so am willing to be a bit risky, but the kind of risk where I might lose half or double it, not the 3.20 at goodwood kind! This would be a long term investment.

I am sort of thinking a Commodites fund or Corporate bonds.. I think!

Also if I put a high dividend share in it are all the dividends in the same tax free wrapper as long as I don't withdraw them.

Thanks

dunstonh

which I belive is £3,600 (as the rest must be actual cash

Its actually £7200 minus what you have contributed to a cash ISA (if any).

but the kind of risk where I might lose half or double it

That puts you in the medium/high risk area.

I am sort of thinking a Commodites fund or Corporate bonds.. I think!

Commodities fund is high to very high risk (well over of your risk profile) and corporate bonds are low to low/medium (with some possible to move up higher on the risk scale). So, generally well below your stated risk/reward objectives.

I think you need to research risk and reward a bit more as you havent quite got that yet.

wombat42_2

Commodities will almost certainly do well if you are prepared to invest for up to 10 years. There is also a good chance that they will spike upwards violently in about 12 months time.

I like Marlborough ETF Commodity fund
http://www.h-l.co.uk/funds/security_details/sedol/B195JD8
It is almost unique in actively managing a basket of all commodities - it is a pure commodity play. The fund also allows shorting and cash holdings to reduce volatility.

Slightly higher risk but also interesting is Investec Enhanced Natural Resorces which covers all commodities including agriculture. It is very flexible as it allows direct commodity plays but has the majority in commodity stocks. The fund also allows shorting and cash holdings to reduce volatility. There is something wrong with my H&L link for this fund but you may be able to get it from here http://www.h-l.co.uk/funds/Fund-prices?func=search&formid=1001&company=329&sector=&investment=By+investment+name&x=17&y=13

wombat42_2

Dunston, Marlborough ETF Commodity only tanked about 20% in the second half of last year against about a 50% drop in commodity prices - compare that with the fortune of funds in so called safer sectors such as financials and property.

It is still only down 1.76% in the last 12 months - compare that to the FTSE or the DOW ?

jfpeeps

dunstonh wrote: »

Its actually £7200 minus what you have contributed to a cash ISA (if any).

So I can do £7200 in Stocks if I put no cash in?

That puts you in the medium/high risk area.

Commodities fund is high to very high risk (well over of your risk profile) and corporate bonds are low to low/medium (with some possible to move up higher on the risk scale). So, generally well below your stated risk/reward objectives.

I think you need to research risk and reward a bit more as you havent quite got that yet.

I am happy for this one investment to be in the high risk just not silly risk.

jfpeeps

Looks like I can't use the quote tool!

wombat42_2

jfpeeps wrote: »

I am happy for this one investment to be in the high risk just not silly risk.

IMHO Neptune Russia and Greater Russia would be silly but my suggestions are more sensible.

jfpeeps

"Its actually £7200 minus what you have contributed to a cash ISA (if any)"

So I can out £7200 into funds assuming I have not deposited and cash, just not the other way around?

jfpeeps

Sorry to be such a newb about this, but have had a quick look at the Marlborough fund, and would like to know the following

As the fee is % based it would be fine to put a smaller amount in rather than the whole lot, I might punt £1000-£2000 on this and put the rest into a more medium risk bond and see what happens...

Is the liability limited to your initial investment?

Thanks!

wombat42_2

jfpeeps wrote: »

"Its actually £7200 minus what you have contributed to a cash ISA (if any)"

So I can out £7200 into funds assuming I have not deposited and cash, just not the other way around?

If you contribute anything to a cash ISA in the next tax year, you can put up to £3600 in a share ISA in that tax year. If you put nothing in a cash ISA in the next tax year you can put up to £7200 in a share ISA in that tax year .

jfpeeps

Sorry yes got that meant ANY cash not and cash but thanks for being clear.