Trying lo learn about Stocks and Shares ISA's

SteveSilva

Hi guys I am looking into taking the plunge and opening a stocks and shares ISA. Now how I understand it, is that if I were to invest in say a HSBC ISA I would be limited to their products and funds. However if I was to invest through a supermarket such as Hargreaves lansdown (apparently there are many more) I would be able via this supermarket to picks funds from HSBC for example but also other High st banks or investment firms. Also there charges would be a lot lower. However I only have £2000 to invest and was thinking of spreading around as many funds as possible but from my understanding the above supermarket only has funds where you have to invest a minimum £1000 per fund, unless I do invest regular monthly lump sums limiting my options.
Is that correct or am I missing something?


Thanks

dunstonh

However I only have £2000 to invest and was thinking of spreading around as many funds as possible

Is it worth spreading it as wide as possible (in theory you could have 2000 funds of £1 each)?

but from my understanding the above supermarket only has funds where you have to invest a minimum £1000 per fund,

Thats would be a provider restriction that does not necessarily apply to all.

SteveSilva

Thanks dunstonh,

I was thinking about investing in maybe 7 or 8 funds adding up to £2000 in total.


"Thats would be a provider restriction that does not necessarily apply to all. "

Ok could you tell me more and maybe point me in the right right direction

letmelearn

I too am interested in this topic. I've had a stocks and shares ISA for about 10 years and it's earned peanuts. I want to learn more about the S&S ISA but have no clue where to look for advice and find out which companies are reputable. Any pointers greatly received.

The_Gerbil

As far as I know there is no point in having a Stocks and Shares ISA with such a (relatively) small amount of money.
You don't pay capital gains until you make £10,000 anyway so there is no advantage in an ISA.

Don't take my word for it of course. Get some proper advice

Mike

jimjames

The_Gerbil wrote: »

As far as I know there is no point in having a Stocks and Shares ISA with such a (relatively) small amount of money.
You don't pay capital gains until you make £10,000 anyway so there is no advantage in an ISA.

Don't take my word for it of course. Get some proper advice

Mike

It may only be £2000 now but if it grows or the govt change CGT rules - entirely possible if they need to claw every penny then you would benefit from being in the ISA. If you earn income from the money and pay higher rate tax then an ISA will protect you from a further tax bill.

robbie_dee

The_Gerbil wrote: »

As far as I know there is no point in having a Stocks and Shares ISA with such a (relatively) small amount of money.
You don't pay capital gains until you make £10,000 anyway so there is no advantage in an ISA.

Don't take my word for it of course. Get some proper advice

Mike

Isn't there an advantage that it will stay in the tax free wrapper and if further funds are added to it or if you wanted to transfer back to cash ISA, it remains in the protective wrapper?

The_Gerbil

robbie_dee wrote: »

Isn't there an advantage that it will stay in the tax free wrapper and if further funds are added to it or if you wanted to transfer back to cash ISA, it remains in the protective wrapper?

To make £10,000 capital GAIN you will need to invest more like £50,000 and even then pick some winners.

I don't think you can tranfer from stocks ISA to cash ISA. You can go the other way though?

Also you might get hit with transfer fees.

I have a lot more than £2000 in shares and I can only dream of making more than £10,000 a year gain

Also not all stocks can be put in an ISA. AIM stocks aren't allowed for example.

SteveSilva

Are they any investment funds which anyone could reccommend which do not need a minimum amount of £1000 to invest?

nickj_2

i have some tracker isa's from legal and general which are doing well atm but my best one is my hsbc 250 tracker which i started thistime last year which has added £1k in 12 months from regualr monthly saving and a transfer from a managed fund which was doing nothing , i will be taking some profit soon

adindas

This is also my genuine experience. If I take into account the growth + transaction cost for buying share, I will be better off by just put those sum into saving account with APR say 4%. A few months ago my real investment has even gone less than I previously invested 5 years ago. Only recently my investment have been picking up. My investment port folio has been advised by Bank Financial adviser (HSBC if you want to know) ...
For this reason now I will be very carefull to consider the advise from the bank regarding investment.

I am willing to take the risk but why do I need to take the risk if I will be better off with no risk at all ?

Probably we need to learn real people experience, whether they are making money by putting their money into S&S ISA ?. Not from bankers who shows us the grahocs that their advised investment will be 4-5 times better than saving.

ADINDAS

letmelearn wrote: »

I too am interested in this topic. I've had a stocks and shares ISA for about 10 years and it's earned peanuts. I want to learn more about the S&S ISA but have no clue where to look for advice and find out which companies are reputable. Any pointers greatly received.