natwest multimanager fund and portfolio with profit funds

hi123

hi
need help in deciding regarding these 2 products which have been recommended by natwest manager for stocks and share isa and also general investment purposes
any experience and pros and cons of these product which appear to be aviva products

dunstonh

Natwest are not whole of market. So, only have a limited panel to select from. MM funds are fine for lazy investors who are looking for transactional (one off) advice and dont want servicing and will not control it themselves. However, generically you are usually best avoiding bank and insurance company equity funds as they "generally" are not that good.

Natwest are likely to be expensive as well.

General rule of thumb; never buy your investment products from a bank.

hi123

thanks
i do understand natwest charges are high,but how are the products as portfolio is a product of aviva

dunstonh

but how are the products as portfolio is a product of aviva

Are you now referring to the product or the funds? Aviva offer a portfolio bond (product) and they offer some multi-manager funds.

The portfolio bond is not as competitive as it once was. Its much closer to mid table now compared to 3-5 years ago where it used to be top or near top. The investment bond wrapper is also a minority tax wrapper. If it is being recommended you should make sure a tax comparison has been made between mutual funds (unit trusts and OEICs) and the investment bond. Banks tend to over sell investment bonds and dont do a proper tax analysis (they earn more on them). So, assuming you have been recommended the portfolio bond, why? Are you a higher rate taxpayer? do you use your annual CGT allowance? Will you be doing bed&ISA each year? Are you over 65 but close to the age allowance reduction figure? What is it that is making the investment bond wrapper beat the alternatives? (it could be fine but just making sure as you would be in a minority product that on commission earns more than the alternatives - so that should put you on guard).

jamesd

The products are poor ones for a stocks and shares ISA. You'd be better served for that by going to Hargreaves Lansdown and picking some decent funds instead. And you won't pay the high initial charge that NatWest wants either.

What sort of amount of money is involved here? Over £50,000? Over 100,000? For those sorts of levels it would be easy to justify visiting unbiased.co.uk to find a proper IFA who can do a good job of reviewing your circumstances and putting together some recommendations from a much wider range of good options.

hi123

thanks all i am high tax payer,use my allowance for cash isa,but want to start stocks and shares isa,will have some cash to invest besides the isa allowance around 20k for atleast 3 yrs

adindas

Do not repeat the mistake they I have made.
They are trying to flog you the limited range of their own group share or where they will get the most benefit.

dunstonh wrote: »

General rule of thumb; never buy your investment products from a bank.

hi123

thanks all,its question of what are the alternatives for stocks and shares isa for not a hands on person,and with no specific skills or knowledge to choose myself the funds

dunstonh

question of what are the alternatives for stocks and shares isa for not a hands on person,and with no specific skills or knowledge to choose myself the funds

Use an IFA. For smaller investments, a fund of funds may be the best solution. For larger investors a structured and controlled portfolio may be the better option (and possibly cheaper). It is really a choice of IFA or DIY. The use of a tied sales rep shouldnt be included as an option.