ISA Wrapped Unit Trusts / OEIcs

Andrew4444

I'm thinking of using my ISA allowance next FY to invest in unit trusts not all the 8 funds I want to invest in are with the same company. In fact there are 4 different companies. I presume I can still take-up my full allownace even though I'm investing in 4 different companies? With ISA allowance on Unit trusts /OEICs how do they know how much allownce you have left. Do you need to quote your NI number when buying the Shares? Sorry for the silly questions but I've never used ISA allownace through shares before.

Aegis

You can only deposit money into one stocks and shares ISA per year, but if you go through a fund supermarket you can invest in unit trusts from all over the place. Hargreaves Lansdown tends to be among the cheapest for managed funds, but they have extra charges for trackers. The best fund supermarket for you is going to depend at least in part on what funds you were looking to invest in.

Can you list the funds you were looking at?

Lokolo

^^ told you

Andrew4444

Here are the 7 funds. I intend to invest an equal lump sum in all up to my ISAShare allownace next FY10/11. Then start monthly payments the year after FY11/12. There are four different comapnies which I thought would be an issue re ISA allowance. So could I invest in these different funds through Hargreaves Lansdown? If so I assume their costs would be in addition to the charges of the individial funds?



Invesco Perp High income
M and G Recovery First State Asia Pacific Neptune Japan Opotunities


Neptune US Oppotunities First state Emerging markets Neptune european oppotunities

Aegis

Andrew4444 wrote: »

Here are the 7 funds. I intend to invest an equal lump sum in all up to my ISAShare allownace next FY10/11. Then start monthly payments the year after FY11/12. There are four different comapnies which I thought would be an issue re ISA allowance. So could I invest in these different funds through Hargreaves Lansdown? If so I assume their costs would be in addition to the charges of the individial funds?



Invesco Perp High income
M and G Recovery First State Asia Pacific Neptune Japan Opotunities


Neptune US Oppotunities First state Emerging markets Neptune european oppotunities

Ok, go and have a look at Hargreaves Lansdown. They will discount most of the initial costs and some of the annual costs for most of the funds you have selected there.

Andrew4444

Thanks appreciate help. I presume my overall costs will be more by doing this through HL than going direct with the individual companies?? Or Will HL total cost be less than the total costs (initial and annual charges) of the 7 funds? I appreciate I couldn't use the ISA allowance on all the funds if I invested individually as you previously advised but now just wondering about how this will effect overal costs/charges?

Lokolo

The initial costs are what HL charge, these are not on top of the companies charges.

So if the company charges 5% initial, and HL charge 1.5%. You pay 1.5%, not 5% nor 6.5%.

Andrew4444

Thnaks Lokolo and Aegis. I'll contact HL.

Aegis

Andrew4444 wrote: »

Thanks appreciate help. I presume my overall costs will be more by doing this through HL than going direct with the individual companies?? Or Will HL total cost be less than the total costs (initial and annual charges) of the 7 funds? I appreciate I couldn't use the ISA allowance on all the funds if I invested individually as you previously advised but now just wondering about how this will effect overal costs/charges?

Going through H-L will lower your costs compared with going straight to the provider. Invesco Perpetual will charge you about 5% going direct for the High Income fund investment, while H-L will charge you nothing. The annual costs will also be reduced.

Generally going straight to the provider is the most expensive way to buy funds because they charge you the full cost and don't have to pay any commission, meaning there's no commission for you to share with your adviser (in this case H-L act as an execution only IFA and rebate a lot of the commission to you)

Andrew4444

That sounds great. So I can use up all my ISA share allowance through different funds and do this at cheaper cost than going direct to the provider.

Excellent!!

Cheers

dunstonh

So I can use up all my ISA share allowance through different funds and do this at cheaper cost than going direct to the provider.

Yes. Its rare for anyone to go direct to provider nowadays. Its the most expensive way to do it.