Trying lo learn about Stocks and Shares ISA's

jimjames

SteveSilva wrote: »

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

Lots! Invest with HL in their ISA and its £50 per month in a fund. Many investment trust savings schemes are also £50 per month outside of an ISA.

The_Gerbil wrote: »

To make £10,000 capital GAIN you will need to invest more like £50,000 and even then pick some winners.
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This just isn't correct, with the right fund and some time you could hit the CGT limit with £5K or less - one of my funds has gone up 5X in the last few years. With the right share it could be a matter of months to turn £5K into £20k where you would have to pay CGT.

dunstonh

For this reason now I will be very carefull to consider the advise from the bank regarding investment.

The banks cant give portfolio advice. You shouldnt be using them to do it. Also, its clear that you dont understand investing. So, either you need to decide to learn or use an adviser that can explain the basics to you so you do understand it.

StephenM_2

I started with just £1000 to invest in a S&S ISA. The way I did it was to invest it all in one fund (a UK growth fund). Then in subsequent years when I had further money to invest I diversified into other funds. I've got about 12 funds now. I use Best Invest's website to suggest asset classes and geographic areas that I'm underweight in, and to suggest funds that meet those criteria, and use FundsNetwork to buy the funds.

With regards to The Gerbil's argument, if I were to sell up now I'd have a £7k profit on a total £18k investment. Not £10k yet, but getting there. Also as far as I can tell there's no disadvantage with the funds being inside an ISA rather than outside.

SteveSilva

Lots! Invest with HL in their ISA and its £50 per month in a fund. Many investment trust savings schemes are also £50 per month outside of an ISA.

So if I make regular savings of £50 per month, once I have reached the £1000 mark can I then stop making the regular £50 per month or do I have to keep making that payment for the life of the ISA?

SteveSilva

This just isn't correct, with the right fund and some time you could hit the CGT limit with £5K or less - one of my funds has gone up 5X in the last few years. With the right share it could be a matter of months to turn £5K into £20k where you would have to pay CGT.

Oh tell us more, which fund???

jimjames

SteveSilva wrote: »

Oh tell us more, which fund???

Share not fund although some funds may have done it.

Barclays, 50p to £3 in fairly short time.

SteveSilva wrote: »

So if I make regular savings of £50 per month, once I have reached the £1000 mark can I then stop making the regular £50 per month or do I have to keep making that payment for the life of the ISA?

You don't need to hit the £1000 mark, you can stop at any point with HL.

jonnyb

The_Gerbil wrote: »

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.

Some AIM stocks can go in an ISA, if they are dual listed on another exchange. Hargreaves Lansdown are pretty good at telling you if a stock is ISA-able.
Take XEL, where I have invested this year. Quoted on AIM and Canadian TSX so ISA-able.
And that's good news for me, as I currently have approx. £15K profit this financial year, and that's dropped recently from almost 20K !:)

hood

Hi Guys,

Could anyone clarify if you can transfer a cash ISA from the current year into a S&S ISA from the current year ? I know you can do it the previous years cash ISA but how about the current year ?


Cheers

SteveSilva

Quote:
Originally Posted by SteveSilva
So if I make regular savings of £50 per month, once I have reached the £1000 mark can I then stop making the regular £50 per month or do I have to keep making that payment for the life of the ISA?

You don't need to hit the £1000 mark, you can stop at any point with HL.

Ok, I'm not sure I understand can you for instance open ten or so funds, and invest £50 each per month for two months and then just stop (i you dont want to invest any more) but still have the funds open?
In that case why do they insist on a minimum amout of £1000 for a lump sum?

jimjames

SteveSilva wrote: »

Ok, I'm not sure I understand can you for instance open ten or so funds, and invest £50 each per month for two months and then just stop (i you dont want to invest any more) but still have the funds open?
In that case why do they insist on a minimum amout of £1000 for a lump sum?

Yes that is correct. No idea why they insist on minimum for lump sum though although once the DD is setup the admin cost from their viewpoint is zero as it is all done online. Handling a lump sum may be more work for them and DD locks you in longer term - in theory.