What Investment ISA?

dave1983_2

Hi all! I'm in the process of opening an investemtn ISA through a financial advisor but would like any opinions people may have of what investment ISA would suit me. I'm willing to begin with £500 and pay a regular £50 per month for the next 5-10 years (nothing spectacular but it's a start!!) and am only wanting to take low to medium risk with the money.

Are there any funds etc which would be worth looking at that people can suggest so I have a few ideas of my own for when I go to see him later in the week.

Thanks, Dave

dunstonh

I'm in the process of opening an investemtn ISA through a financial advisor

Tied sales rep or IFA?

but would like any opinions people may have of what investment ISA would suit me.

We dont know you. So, its difficult to say. What suits one person may not suit another.

'm willing to begin with £500 and pay a regular £50 per month for the next 5-10 years (nothing spectacular but it's a start!!) and am only wanting to take low to medium risk with the money.

With most fund supermarkets you would be limited to £50pm per fund. So, you are not going to be able to diversify much with that amount or timescale unless a fund is selected that does the asset allocation within it or a fund supermarket is chosen that has no minimum per fund or an ISA manager that allows £25pm per fund (at least you get two that way).

Are there any funds etc which would be worth looking at that people can suggest so I have a few ideas of my own for when I go to see him later in the week.

If you are using an IFA they have to recommend the fund. If you are using a tied sales rep then you pick the fund from their range. Are you using a tied rep and because of that you have to pick the fund? If so, what is their product range?

am only wanting to take low to medium risk with the money.

Can you put that in context as one persons low/medium is another persons high. How much of a loss in a 12 month period could you put up with before you get cold feet and pull out?

dave1983_2

Hi dunston! Thank you for replying. The financial advisor is independent and whole of market so they will recommend the fund. Thanks for clarifying that as I've never dealt with investments before.

Would it be worth putting away a little more - maybe £100 per month? I am willing to take some risk but I'm not prepared to walk away in 10 years time with nothing! I would probably accept up to 20% loss over 12 months before I had thoughts of getting out but I would probably leave the money in to see if it recovered over the fullness of time - thsi would depend on the advice of my IFA however.

Lokolo

dave1983 wrote: »

Hi dunston! Thank you for replying. The financial advisor is independent and whole of market so they will recommend the fund. Thanks for clarifying that as I've never dealt with investments before.

Would it be worth putting away a little more - maybe £100 per month? I am willing to take some risk but I'm not prepared to walk away in 10 years time with nothing! I would probably accept up to 20% loss over 12 months before I had thoughts of getting out but I would probably leave the money in to see if it recovered over the fullness of time - thsi would depend on the advice of my IFA however.

If its an IFA he should have asked you questions like how long, how much are you prepared to lose.

He should then compile a list of different funds for you.

Once he has done this, post it on ere and we can tell you whats what if you do not understand

dave1983_2

Hi Lokolo, I'm going to see him on wednesday to see what he recommends, he has already asked all of the questions posed on here. I was just wondering so that I might know some more about any of the companies he recommends. Thanks and I'll keep you informed!

Lokolo

dave1983 wrote: »

Hi Lokolo, I'm going to see him on wednesday to see what he recommends, he has already asked all of the questions posed on here. I was just wondering so that I might know some more about any of the companies he recommends. Thanks and I'll keep you informed!

There are a lot of companies he could possibly recommend! It will also more than likely, a mixture of different funds

dave1983_2

Hi again all! Further to my last post, what he recommended was a spread of funds so what we've done is split my initial £500 into £250 in the Invesco Perpetual Corporate Bond and £250 into the Invesco Perpetual High Income Account. With the monthly £50 that will be spilt into £25 going into the Jupiter India fund and the remaining £25 going into JPM Natural Resources. All of this is being done throuhg Fidelity Funds Network.

Any thoughts on that? Thanks, Dave

fg22

The initial split looks sensible but I'm surprised by the monthly choices. The managers of those funds may or may not be good but the areas they are invested in are high risk. They are specialist funds, usually used as small components of larger portfolios. I would aim to get exposure to other developed equity markets (US, Europe, Japan) and if exposure to India was wanted I'd choose a general emerging markets fund.

dave1983_2

I'm willing to take a higher risk with my £50 per month as that's the cost of a night out and would be lost anyway - and my advisor said that risk and reward go hand in hand so why not try those funds for a few months? I'm also thinking of trying £25 p/m into the Jupiter Financial Opportunities fund too.

Any further thoughts are appreciated! Dave

EdGasket

Just open a Stocks and Shares ISA with TD Waterhouse or Hargreaves Lansdown and stick the money in Legal and General all stocks Index-linked fund. It has an expense ratio of 0.22% (very low charges) and being Index-linked gilts, you can't lose long term. Also save yourself the IFA fee if it's not too late !

Lokolo

dave1983 wrote: »

I'm willing to take a higher risk with my £50 per month as that's the cost of a night out and would be lost anyway - and my advisor said that risk and reward go hand in hand so why not try those funds for a few months? I'm also thinking of trying £25 p/m into the Jupiter Financial Opportunities fund too.

Any further thoughts are appreciated! Dave

Is he offering just a transaction purchase or reviews as well?