Investment Trusts

Andrew4444

Is it possible to pay monthly into these and can I wrap this into my HL S and S ISA? If not HL ISAany others?

Thanks

dunstonh

The HL ISA is priced for investment funds rather than investment trusts.

Investment trusts can do monthly although its not always cost effective. That would depend on the amounts and whom you use.

Andrew4444

Thanks. Do you know of a provider who offers ISA wrapped investment trusts?

jimjames

I use various different investment trusts but not via an ISA as the charges generally outweigh the benefits of the ISA wrapper.

Companies such as Aberdeen offer such good value non ISA plans that it isn't beneficial (for me at least) to invest smallish amounts via other routes. The Aberdeen plan only charges stamp duty and no other fees whereas the ISA route normally has annual charges of 1% or £30+ depending on provider.

If you don't need the ISA protection for income tax and are not likely to make £10k profit per year then an ISA may not be cost effective.

jimjames

I use various different investment trusts but not via an ISA as the charges can outweigh the benefits of the ISA wrapper.

Companies such as Aberdeen offer such good value non ISA plans that it isn't beneficial (for me at least) to invest smallish amounts via other routes. The Aberdeen plan only charges stamp duty and no other fees whereas the ISA route normally has annual charges of 1% or £30+ depending on provider. My Jupiter ISA one costs £9.95 a quarter so just under £40 per year. With my non ISA holdings this charge is not made.

If you don't need the ISA protection for income tax and are not likely to make £10k profit per year then an ISA may not be cost effective.

Andrew4444

Thanks.

So it looks best to ignore the monthly investment idea and ISA wrapper.

I have many HL ISA S and S funds in the wrapper but was looking to have some fun and have a very speculative punt on IT Scottish Oriental smaller co or Aberdeen asia smaller co at £5K .

Is there are provider you recommend to buy these through (that you use?)

jimjames

Andrew4444 wrote: »

Thanks.

So it looks best to ignore the monthly investment idea and ISA wrapper.

I have many HL funds in the wrapper but was looking to have some fun and have a very speculative punt on Scottish Oriental smaller co or Aberdeen asia smaller co at £5K .

Is there are provider you recommend to buy these through (that you use?)

I tend to buy mine direct from the management company but not all companies offer savings schemes. Aberdeen certainly do and you'll be hard pressed to find anyone who can match their charges. The best bit is for reinvestment of any dividends that you still only pay stamp duty at 0.5% so a dividend of £10 will only cost you 5p to reinvest.

http://www.invtrusts.co.uk/

Andrew4444

Thanks for your help. I'll look at that.

cloud_dog

Investment Trusts are structured and traded like normal stocks.

As far as I am aware the majority of I.T. managers offer monthly savings plans. The Association of Investment Trust Companies provides information on all the different managers and investment options.

Andrew4444

JimJames

I've looked at the link and Aberdeen do have monthly investments for IT available in an ISAwrapper. (looks like exactly what I wanted)

However, You said in an earlier post that the 'charges generally outweigh the benefits of the ISA wrapper'.

These costs (through Aberdeen) do look reasonable, so why would the charges outweigh the ISAwrapper benefits?

Would the cost of say £850 monthly through Aberdeen ISA be more than £10200 in a lump sum through share plan outside wrapper?

I just want to invest the cheapest way.

Thanks

jimjames

Its not a huge difference but for the ISA

• minimum monthly investment - £100
• minimum lump sum investment - £1,000
• low annual charge of £24 (plus VAT) per annum, regardless of how many Aberdeen Investment Trust ISAs you hold.
• £15 exit fee per sale

and for the non - ISA share plan

• minimum monthly investment - £100
• minimum lump sum investment - £250
• no initial charges (Government stamp duty is payable at 0.5% and investors pay the buying price on the stock market)
• no annual plan charge
• £10 exit fee per sale

So the ISA will cost you £24 more to hold per year plus £5 extra to sell shares. Other providers have a bigger differences but £24 is quite a reasonable charge - its just that outside the ISA you wouldn't need to pay this. If you are a basic rate taxpayer and not going over your CGT allowance then it would save you that money but its something you'd need to consider for your own circumstances. (I corrected my comment - it should have said "can outweigh" not generally)