Stocks + Shares ISA's shares + funds?

Lokolo

*JS* wrote: »

Quite a relevant thread for myslef so I thought I'd ask my question here.

I have about £1000 to invest into a S&S ISA, and will have around £2000 further to invest at the end of the year when my work sharesave matures.

I have looked at the HL website and am impressed with the range of funds and discounts. The only thing that is stopping me from opening the ISA are the minimum contributions. On most of the funds I have looked at the minimum lump sum seems to be £1000, however I was looking to spread my investment over 4-5 funds.

Are there alternative providers out there with the range of funds and discounts that HL have but with lower minimums? Or should I jsut invest the £3000 as monthly payments over a period of time as the minimum monthly contributions are a lot lower.

You can set up a monthly regular amount with HL with a minimum of £50. So pick 5 funds, set up a regular buy at £200 each. Cancel after 1 month.

Just_landed

Middle_Sister wrote: »

I dont do any trades. I think the money is because the shares are held in a stocks & shares ISA and this is a fee.

Somethings gone wrong here if you have set up a nominee S & S ISA A/C best done on the internet. Once your shares are bought unless you trade them again sell or buy there should be no management charges. Type iii into google and read up on share dealing.

noh

Middle_Sister wrote: »

I set up Halifax sharedealing as I got shares through my company. I was recommended to sell them and buy back and put them in a stocks and shares ISA (which I did). I now have charges of about £50 every 3 months. Is this normal? And - what am I paying for exactly?

Do you mean every 6 months?
Halifax charge a half yearly administration fee for their S+S Isa.
The fee is 0.05% per month (min £2.16; max £8.33 per month). The maximum you can pay is therefore £50 every 6 months.
Fees and charges here:- http://www.halifax.co.uk/sharedealing/charges/admin-charges/

RobStaffs

I only invest via funds.Most held with H_L but some earlier ISA's tied up in directly with fund managers(now moving them to H_l).Might consider moving into trades but I just dont have the time at the moment to give it the attention it deserves.I am learning by the day not only using this site but also some of the references that are quoted on here to other sites.

SallyG

Is there any way of putting money into a stocks and shares ISA and later taking income from it without paying any sort of advice fee, entry fee, management charge,dividend tax,savings tax,capital gains tax or income tax?
I've been trying [and failing] to get to grips by reading the various blurbs - eg Invesco Perpetual
"Important information
Investors may be subject to tax on
distributions.
Cash income is estimated
coupons from bonds and, where
applicable, estimated dividends from
equities. The running yield estimates
expected cash income into the fund
from coupons of current bond holdings
and, where applicable, dividends from
current equity holdings. The running
yield for this fund is net of all fund
charges except AMC, which is charged to
capital. The redemption yield estimates
the annualised total return: in addition
to expected cash income, it includes the
amortised annual value of unrealised
capital gains/losses of current bond
holdings, calculated with reference to
their current market price and expected
redemption value. The redemption yield
is net of all fund charges. The distribution
yield estimates the cash distribution to
the shareholders: in addition to expected
cash income, it includes the amortised
annual value of unrealised capital
gains/losses of current bond holdings,
calculated with reference to their historic
purchase price and expected redemption
value (known as 'effective yield from
purchase price' method). The distribution
yield for this fund is net of all fund
charges except AMC, which is charged to
capital. The underlying yield is calculated
in the same way as the distribution
yield, but is always net of all charges.
The underlying yield for this fund is,
therefore, lower than the distribution
yield by the amount of the AMC. Where,
in the Manager's judgement, there
is significant uncertainty that a bond
holding will be redeemed at par, the
amortised capital component for that
holding is retained in the fund's capital
and not distributed. This has the effect
of reducing the estimated redemption,
distribution and underlying yields and the
actual distribution rate.
The value of investments and any income
will fluctuate (this may partly be the result
of exchange rate fluctuations) and investors
may not get back the full amount invested.
Past performance is not a guide to future
returns. The fund invests in bonds and other
fixed income securities that are subject to the
risk that issuers do not make payments on
such securities. The fund may be adversely
affected by a decrease in market liquidity
which may impair the fund's ability to acquire
or to dispose of securities at their intrinsic
value. The fund may invest in high-yield bonds
which are regarded as being more speculative
(than investment-grade bonds) as to the
issuer's ability to make payments of principal
and interest. Where Invesco Perpetual has
expressed views and opinions, these may
change.
Please refer to the latest Full Prospectus,
Simplified Prospectuses and ISA Key Features,
and latest Annual or Interim Short Reports
for more information on our funds. Further
information on our products is available using
the contact details shown.
Invesco Perpetual's ISAs are managed by
Invesco Asset Management Limited.
Telephone calls may be recorded."
The only thing I get about ISAs is that they're tax free - I only use the cash half of my annual ISA allowance because I can't understand the stocks/shares/equity ISAs
Even those terms used to describe them are baffling?
Were they designed to exclude the great unwashed?

jimjames

You can't avoid the annual management fee as the fund levies that for managing the fund on your behalf.

You can avoid initial charges, advice fees, capital gains and income tax by using a fund supermarket such as HL making your own fund selections and by holding your funds in an ISA.