Index tracker advice

Jacinta

Hey guys,

I would really appreciate any advice any of you can give me. I have a Fidelity Moneybuilder Index tracker which tracks the FTSE all share index. I've been investing for a few years now via direct debit each month, but I would now like to diversify and invest in the Legal and General Pacific Index Trust. I also have a separate cash ISA, so I split my £10,200 allowance between the two.

As far as I understand, I cannot have two stocks and share ISAs with different providers, and invest in both of them within the same financial year. Is this correct? If this is the case, do I need to suspend my direct debit to the Fidelity account, and then invest separately with Legal and General? Has anyone done this before? I remember reading that there is a minimum top-up each month on the Fidelity ISA, so I don't know if this means that I am compelled to keep investing at a particular rate with Fidelity for the lifespan of my ISA with them, or whether I can take a break from it to pursue an investment elsewhere.

One other question: I understand what happens when you transfer a cash ISA from one provider to another. How does it work with a stocks and shares ISA? Do all your original investments stay intact, but with (hopefully better) rates?

As I said, any advice on this would be appreciated!!

Jacinta xx

pressuredrop_2

Your current provider doesn't offer the L&G fund?

Newbie2saving

You can only have one S&S ISA per tax yr, that is right, but you can hold numerous funds / trackers within that ISA. I use H-L and had 3 funds which I paid into. I wasn't happy that my cash ISA was earning so little so I transferred 50% of it into my S&S a couple of weeks ago. I filled a form out from H-L and sent it off, they did the transfer and the money was in my account as cash ready to invest as of yesterday. Which provider / platform do you use for your S&S ISA? I am sure they will have a similar system.

I know if you transfer your S&S with H-L (not saying to use them, just telling you how they work), then they do the transfer for you lifting your stocks / shares or as cash, whichever you choose.

Good luck.

dunstonh

As far as I understand, I cannot have two stocks and share ISAs with different providers, and invest in both of them within the same financial year. Is this correct?

You can only contribute to one ISA manager per tax year.

? If this is the case, do I need to suspend my direct debit to the Fidelity account, and then invest separately with Legal and General?

Do you use Fidelity or Fidelity fundsnetwork?

How does it work with a stocks and shares ISA? Do all your original investments stay intact, but with (hopefully better) rates?

If you re-register then the investments remain intact. If you cash transfer then the investments are sold to cash and then you have to buy new investments with the new ISA manager.

If you hold the same investments on different platforms the rate of return will not be any different. You are only changing the administrator and perhaps charges.