Skandia S&S ISA

masco1

An IFA is recommending this provider and their Spectrum 8 fund for a medium to long term (at least 20 yrs) investment with a moderate-high risk. This appears to be a young fund.
I have three questions:
1) does anyone have views on this fund in terms of its balance/diversification?
2) Would the charges be considered high when compared to other similar products?
3) Is there a better option for investing in a similar fund?

I would be contributing monthly by the way and this would be my first venture into the stock market
Thanks in advance

dunstonh

1) does anyone have views on this fund in terms of its balance/diversification?

its designed for those that are not actively investing themselves and not getting servicing advice going forward. The diversification and control is made by the fund.

2) Would the charges be considered high when compared to other similar products?

The charges are typically higher on portfolio funds as you are paying the fund manager/fund house to do the work you are not doing or the IFA is not doing. There are cheaper options but the charges are typical of the type of fund it is.

3) Is there a better option for investing in a similar fund?

We can tell you in 20 years time what was best. We cant tell you now.

Personally, I dont like portfolio funds as they are expensive for what they do. However, I frequently recommend them to "lazy investors" who do not want servicing and do not intend to review their own investments. Its better for a "lazy investor" to have a self balancing fund of funds like this which costs a bit more than to have a selection or funds that are cheaper but will go out of sync after a while and move away from their risk profile and possibly become inappropriate over time. Especially on a period of 20 years. If you are paying the IFA to do servicing then you can get cheaper. If you intend to do the servicing then you can get cheaper.