ISA - any advice on how to split investment across funds ?

Dave2112

Hi

Iv'e just cashed in my endowment - good news is it's £7,000 - bad news is it's only £7,000 :mad:

I'm overpaying on my mortgage monthly and calculated that if I overpayed the £7k as well then that would beat the projections for the endowment. All well and good but I then decided that long term I should invest some of the £7k in some stock market funds and wrap them in as ISA. My attitude to risk varies on job stability/mortgage amount so at the moment I'm happy on both counts so a bit more risk I think.

I've decided that "Ethical" funds suit me quite well and have looked at these.

But the question is.....if I put £5k in the funds how should I split this? All in one fund, £1k in each of five funds? etc.

Any advice would be greatly received - including fund supermarkets - I've looked at Smile as they seem OK.

thanks
Dave

dunstonh

All in one fund is almost always the wrong way to invest.

How much you put in one fund depends on who you use as an investment portfolio. I did a 10k (5k each ISA) yesterday and both had 13 funds and two of the funds only had £100 in them. The provider I used allowed that but most of the providers that go direct to public only allow £1000 per fund. How you spread it and how much you put in each sector depends on your attitude to risk.

Smile are rubbish. They charge you almost full whack for using the fidelity funds network platform yet you get no advice for doing so and no consumer protection. Many full advice IFAs would be cheaper than smile and you would get consumer protection on the advice given.