Managed Funds - can I put them in an ISA? And more questions....

princess_bambi

Hi,

I was just wondering if anybody could help me, I am a little bit bamboozled after looking through loads of these threads and Martin's articles.

I inherited approx £30K in cash and some investments when I was 21 (I'm 25 now) and had to deal with sorting it on my own (which was tricky at times!). My Granda pointed me in the direction of Chase De Vere and they advised me to invest in Mellon Protected Newton Higher Income Plan, Investec Cautious Managed Fund Income A shares, and Standard Life Guaranteed Bond which are all in ISA's and appear to be doing well. I also have approx £5K in a A & L mini cash ISA's for emergencies and some shares in Standard Life which I took up when they floated. I took out student loans of approx £3.5K when i was at University and invested them along with everything else. I did also work during university and as a treat to myself took a year out after uni to go travelling spending approx £10K. I think my investments are approximately worth 40K now...Anyway....

I have a few problems, the 2 investments that I inherited are Schroders UK Equity Fund worth approx £2,250 now, and Invesco Perpetual UK Growth Income worth approx £9.5K now. These are not in ISA's. Can these be put in ISA's? Is it worth it? I am looking to buy a flat in late 2007, so if I am considering selling them should I bother? Will there be charges? Would people recommend I sell all my investments to put into property or retain some of them? Which ones?! Oh the confusion.... or do you think I should go to an IFA or speak to Chase De Vere again? Will they give me financial advice if I don't directly need a new product at the moment?

Any help would be very greatly appreciated, I'm getting myself in a pickle.

Thanks :T

dunstonh

Can these be put in ISA's?

Yes, subject to your allowance.

Is it worth it?

Can be. If the provider doesnt charge for doing so and you are a higher rate taxpayer.

I am looking to buy a flat in late 2007, so if I am considering selling them should I bother?

It would suggest you should perhaps consider calling it quits now and put the money in the bank.

or do you think I should go to an IFA or speak to Chase De Vere again?

No point at this stage as there is little they can do for you.

EdInvestor

princess_bambi wrote:

I think my investments are approximately worth 40K now

Well done .

I have a few problems, the 2 investments that I inherited are Schroders UK Equity Fund worth approx £2,250 now, and Invesco Perpetual UK Growth Income worth approx £9.5K now. These are not in ISA's. Can these be put in ISA's? Is it worth it?

If you are a basic rate taxpayer, you won't be charged any tax on dividend income from these funds, and you have an annual capital gains tax free allowance of around 9k, which should more than cover you if/when you want to sell to use the money for a house deposit.

Putting the funds in an ISA won't give you any extra benefit that you need, so I would just leave them as they are for the present.

Would people recommend I sell all my investments to put into property or retain some of them? Which ones?!

I would try to keep your ISAs as much as possible, as you can never replace these once they are gone. But you can always change what the money in the ISA is invested in, it's the wrapper you need to hang onto, not the fund within it.

princess_bambi

Thanks for your help. I think I will just leave things as they are at the moment then!

I was just wondering why Dunstonh would suggest selling my investments now? They are doing well at the moment so I would think it would be best to just leave them where they are until shortly before I need them?

Thanks.:j

EdInvestor

If you sell them now, you avoid the risk that the market falls and your money is worth less thus potentially effecting your house purchase..

On the other hand, you might miss out on gains between now and then..

Your call

dunstonh

I was just wondering why Dunstonh would suggest selling my investments now? They are doing well at the moment so I would think it would be best to just leave them where they are until shortly before I need them?

Ed covered off the reasons.

The thing is with investments that they are not doing well. They have done well. Everything in the future is unknown. The will do well right up to a correction or a crash. You dont tend to get any warning on these things.

You have an amount that has done well and you need the money out within 12 months. You have to decide whether you want to risk a 20-30% drop before then or be happy with what you have got now.

Its totally down to how you judge the risk.

princess_bambi

Ok I think I'll keep my beady eye on them for a wee while and then have to make my gambling decision! Then again I'm not normally so lucky, did manage to inherit shortly after 9/11 so all funds etc were exceptionally low!!

Thanks again for your kind help.

:beer: