Hargreaves Lansdown - ISA performance?

CosmicTen

Anyone invested in a S&S ISA at HL and what sort of returns have you been getting percentage-wise?

I have 3K lump sum which I want to put in some medium risk for 12-24 months, I'm wondering if an ISA is worthwhile over such a relatively short term and what sort of returns they've been making. It's been in a regular savings account that paid well but doesn't accept lump sums so its no longer any use. Most savings accounts for 12-24 months don't even beat inflation.
Cheers.

dunstonh

Anyone invested in a S&S ISA at HL and what sort of returns have you been getting percentage-wise?

Pick a number between minus 100 and plus 100.

ISAs do not make or lose money. Where you invest does that. There are over 2000 retail unit trust/OEIC funds. You can also hold different funds with different amounts creating an infinite number of variations and therefore an infinite variation on the returns.

Also, investment returns going forward will not look anything like investment returns going backwards as the economic cycle changes.

I have 3K lump sum which I want to put in some medium risk for 12-24 months,

if you invest in a fund that is generically medium risk for a period of just 12-24 months then that stops being medium risk and becomes very high risk due to timescale. It is effectively a punt rather than an investment.

Most savings accounts for 12-24 months don't even beat inflation.

Historically, there are periods when they dont beat inflation and when they do. However, even when they beat inflation it isnt normally enough. Which is why most people utilise investments for longer term holdings. Your timescale is really too short to consider investments.

CosmicTen

Thanks for the reply, I was thinking more of managed fund already selected rather than managing the S&S's myself.

I had a feeling it would be a too short time scale.

While you're here, rather than invest there is a Cash ISA I found the other day that pays a fairly good percentage, but it only accepts one lump sum I believe for a time scale of your choice, i.e. 12 months, 18, 24 etc.. but no contributions through the term. Would I be better doing this and putting further contributions into a Regular Savers at First Direct that pays 5% gross p/a for 12 months with a max of £300 a month (my max anyway), over having it all in one savings account paying a lower rate?

My question isn't specifically about comparing the two but would I loose out with the compound effect over having them in two accounts? Does that make sense? Not sure if I do.

Lokolo

CosmicTen wrote: »

Thanks for the reply, I was thinking more of managed fund already selected rather than managing the S&S's myself.

I had a feeling it would be a too short time scale.

While you're here, rather than invest there is a Cash ISA I found the other day that pays a fairly good percentage, but it only accepts one lump sum I believe for a time scale of your choice, i.e. 12 months, 18, 24 etc.. but no contributions through the term. Would I be better doing this and putting further contributions into a Regular Savers at First Direct that pays 5% gross p/a for 12 months with a max of £300 a month (my max anyway), over having it all in one savings account paying a lower rate?

My question isn't specifically about comparing the two but would I loose out with the compound effect over having them in two accounts? Does that make sense? Not sure if I do.

Yes. But the term accounts usually say no withdrawals. So if you needed the money you may not end up getting at it. This will depend on the specific account in question though.

CosmicTen

I'm not particulary worried about no withdrawals, hence looking at 12 - 24 months. The FD account allows withdrawls but the interest for the whole term drops to about 1/2% or something, which if I needed the money that badly I don't think I'm going to care much for interest

Lokolo

A number of people open regular savers each year and at the end of the term (12 months), they will move the money all to a fixed rate account.

CosmicTen

OK, cheers. Sounds like I'm on the right track then.

blinko

your right to make use of your ISA allowance but it seems you've gone in a bit blind i hope it works out for you, but by the sounds of it you will be hapyp just to match the index or beat a savings account which is suspect is your benchmark

CosmicTen

Not so much blind, just my thoughts before I do the leg work. I've calculated the compound returns from having the split option (Fix amount ISA and Savings Account) against a single savings account at a lower rate and taxed, and the single account comes out on top because of the compound effect. It's about an extra 20 quid or so but just shows it's worth doing the calculations!

Loughton_Monkey

dunstonh wrote: »

Pick a number between minus 100 and plus 100.

ISAs do not make or lose money. Where you invest does that. There are over 2000 retail unit trust/OEIC funds. You can also hold different funds with different amounts creating an infinite number of variations and therefore an infinite variation on the returns.

Perfectly correct Dunstonh.

I have been reasonably satisfied with my returns through Hargreaves Lansdown. My choice of funds is one thing, but it is worth noting a method of enhancing it. When certain funds have really performed for a while, and the market(s) appear set for a minor crash, I have several times sold everything - pending a fund switch. Then I wait for the markets to come down, and then re-enter at lower prices (same - or perhaps different funds).

This clearly has its pitfalls potentially, and I'm the first to recognise how this can backfire. But so far (touch wood) this has worked well for me.

[Currently, I'm very loaded in India and Asia ex Japan. Boy! are they performing now. But potentially a bubble.]

blinko

Loughton_Monkey wrote: »

Perfectly correct Dunstonh.

I have been reasonably satisfied with my returns through Hargreaves Lansdown. My choice of funds is one thing, but it is worth noting a method of enhancing it. When certain funds have really performed for a while, and the market(s) appear set for a minor crash, I have several times sold everything - pending a fund switch. Then I wait for the markets to come down, and then re-enter at lower prices (same - or perhaps different funds).

This clearly has its pitfalls potentially, and I'm the first to recognise how this can backfire. But so far (touch wood) this has worked well for me.

[Currently, I'm very loaded in India and Asia ex Japan. Boy! are they performing now. But potentially a bubble.]

oddly enough i am the same so watching it very cautiously i feel india and gold/mining are very well priced and even my long term africa punt i will be trading out if i feel the markets are going to head in to a crash

i know your supposed to hold and ride out the stroms but i think by actively managing it i can reduce the loss although at the same time i never get the bottom of the market and stats change

i luckily went in on Aug23rd this year and caught the mini boom but i doubt i will be able to make it everytime

and just to confirm HL has nothing to do with the return on your investments they are simply a cheap provider, and i really like there online platform same with halifax actually there rates arent great but there online service is the best

likewise alliance and leicester have the best rates but there online accounta management is the worst not to mention customer service

anyway all the best