Help! Shares ISA 'Virgin' in need of advice!

cyberstoat

Hi- I'm a regular user of the main site but this is my first post so hope you can help!

I have Cash ISA's which I have invested in for the last 4 years (and have used this years limit). This year I have some surplus savings in a 3%+ savings account with A&L, but I'm a higher rate tax payer so in reality this is not worth much. Cash ISA's are recommended by:money:so I'm happy with these at the moment.

I want to open a Shares ISA now with a lump sum of £3600 from my savings account but really can't find much on the main site in terms of which one company/ type is best.

I may want to buy a house next year so it might be that I only want the ISA for 12 months or so but could be 5 years +... who knows!

I will have enough come April to open another cash ISA for £5100 or I could put this amount into shares ISA I'm really not sure.

What I would love some help with is...

- Which company should I go with (I have found loads of options on L&G site + topcashback give £50 for opening an account through them) but charges seem fairly high though 1% + .86% + a possible 1% performance fee. Is this about right?

- Which type is best- this I counted 30+ on L&G which has me a bit bamboozled!?!?

I can probably afford to lose a bit of my cash but with the way the markets are I would hope that I could get an annual return of 10%+. Is this realistic?

Any advice you have would be very gratefully received!!!

Thanks!

Lokolo

cyberstoat wrote: »

I can probably afford to lose a bit of my cash but with the way the markets are I would hope that I could get an annual return of 10%+. Is this realistic?

Not if you are planning on only keeping the money in there for 12 months.

Investments go up and down, the good thing about longterm is that there is a general upward trend which is good. Short term then no, the bumps and rides don't show an upward trend which means you could end up at the end of 12 months with a loss.

Typical fees depend on whether you are looking at shares or funds.

L&G are funds. Typical charges for discount brokers are around 0%-0.5% initial fee then AMC of around 1.25%.

Rollinghome

cyberstoat wrote: »

I can probably afford to lose a bit of my cash but with the way the markets are I would hope that I could get an annual return of 10%+. Is this realistic?

Afraid it isn't, especially at current levels. It's wildly optimistic and there's every chance of a substantial correction in the short term.