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FIDELITY MINI S & S ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 1.1K views
walsh_3walsh_3 Forumite
12 posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
MY HUSBAND PAYS £50 A MONTH INTO THIS ISA TO USE FOR LONG TERM INVESTMENT. HE WANTS TO INCREASE CONTRIBUTIONS TO AROUND £200 PER MONTH BUT BEFORE HE DOES HE WANTS TO KNOW WHETHER THIS IS A GOOD ONE OR NOT.

IT MENTIONS ON THE STATEMENT INITIAL CHARGES OF 3.25% - HE'S HAD THE ISA FOR OVER 3 YEARS - WILL THIS BE THE AMOUNT PER MONTH HE IS PAYING.

I UNDERSTAND THIS IS VERY HIGH AND CAN LOWER ANY PROFITS.

WOULD HE BETTER OFF STARTING A NEW TRACKER WITH VERY LOW CHARGES - I'VE READ THAT THESE ARE BEST FOR LONG TERM INVESTMENTS.
I say what I like, I like what I say!

Replies

  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    IT MENTIONS ON THE STATEMENT INITIAL CHARGES OF 3.25% - HE'S HAD THE ISA FOR OVER 3 YEARS - WILL THIS BE THE AMOUNT PER MONTH HE IS PAYING.

    I UNDERSTAND THIS IS VERY HIGH AND CAN LOWER ANY PROFITS.

    3.25% is actually below average for an advice product. Most of the banks & B/socities charge 5-6%

    However, you can purchase online with no initial charge so you can avoid that.
    WOULD HE BETTER OFF STARTING A NEW TRACKER WITH VERY LOW CHARGES - I'VE READ THAT THESE ARE BEST FOR LONG TERM INVESTMENTS

    One of the highest charged funds is the fidelity special situations. It is also one of the top performing uk funds and has wiped the floor with trackers. I suggest you read some of the recent threads on trackers which highlight the bad points. Too often certain websites focus on the good points, such as low charges and ignore the bad points.

    if your husband wants to pay £200pm, i would suggest he considers pay £50 into 4 funds with a funds supermarket provider (such as fundsnetwork, cofunds, selestia) as this will allow a large selection of funds with one provider and he can diversify the investment which is far more important than saving 0.5% a year on charges.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Financial adviser has just advised him to transfer fund to Special Situations & Recovery - would it not be wise to put £200 a month into something like this.

    Being used as a retirement fund.
    I say what I like, I like what I say!
  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Its a good fund historically. I have a chunk of my pension in that fund. However, putting all your eggs in one basket is the old fashioned way. At £200pm he can have 4 funds. I would suggest 4 funds as you spread the risk and reward.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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