Shares ISA to pay mortgage ?

gadgetmind

atush wrote: »

I always keep investing in the bad times.

That's the main time I buy: during the euphoria times, I just can't see much to invest in.

Of course, my pension keeps ticking away (though I increased it to the limit back in June), and we do our S&S ISAs every year, but I accumulate cash/bonds to well above my usual percentage.

gadgetmind

Linton wrote: »

I think you will find that passive funds, where they exist, have not matched the average managed fund (never mind the good ones), despite the higher charges.

For EM, the trackers are all pretty new, and often have costs quite close to that of funds. For UK, Europe, US, the rest of the developed world inc Japan, and for much of the Pacific, the trackers seem to do a good job.

As you probably only want EM to be (say) 10% of your portfolio, adding a high fee fund doesn't push up your overall fee drag too much. Of course, the manager's coin tossing could then go bad, and you'll be wishing you'd tracked instead!

Linton

gadgetmind wrote: »

For EM, the trackers are all pretty new, and often have costs quite close to that of funds. For UK, Europe, US, the rest of the developed world inc Japan, and for much of the Pacific, the trackers seem to do a good job.

As you probably only want EM to be (say) 10% of your portfolio, adding a high fee fund doesn't push up your overall fee drag too much. Of course, the manager's coin tossing could then go bad, and you'll be wishing you'd tracked instead!

The various geographic areas cover a range of sectors. Sure if you want a general broad investment in one of those geographies you could do worse than chose a tracker. But if you want something more focussed such as "small companies" using a tracker (if there was one) could be throwing money away. The evidence is clear, look at UK small companies on trustnet and see how the FTSE Small Cap Index compares to the managed funds.

The Far East is a bit strange. The 2 trackers I can see (L&G and HSBC) in terms of the 5 year return seem to do moderately badly (3rd quartile) but the very strange thing is their performance seems to bear very little relationship to the index they claim to be following. This is perhaps fortunate for their investors as the index itself performs very badly. Whats going on?

colshandy

I know actually nothing about what portfolio to do? Any ideas on good places to gen up. Realise there are 1000's of funds but I just want to put it in a steady away funds. Dont want to be spending too much time analysis things, do enough of that at work. Need to start picking my guitar up again after work !! :-)

Cheers

gadgetmind

colshandy wrote: »

I know actually nothing about what portfolio to do?

Read that book! If you really want a long snooze, go for the Vanguard LifeStrategy, a balanced portfolio in a passive fund. Simples!

http://monevator.com/2011/10/18/vanguard-lifestrategy/

colshandy

I will definitinly read that book !!

Thanks for that, saw one of the comment about all eggs in one basket and I was thinking the same thing.

Would it be best to have this as say 20-30% of total value but not the full whack?

Currently I have my whole ISA amount split between 3 funds (the same ones the IFA stuck them in when O took it out)!! A UK index acc, UK equity tracker fund, North American Equity tracker fund.

Does HE need to read this book as well !!!

colshandy

First things first, I need to change ISA providers...are fidelity a safe bet for my type of requirement ?

Thanks

gadgetmind

colshandy wrote: »

First things first, I need to change ISA providers...are fidelity a safe bet for my type of requirement ?

I'm considering them as they let you hold the low-fee HSBC trackers and the similarly low fee Legal and General Gilts (All Stocks Gilt Index and All Stocks Index Linked Gilt). The only EM tracker I can find is the L&G Global EM Index.

Another option is Hargreaves Lansdown. I like their platform, but the L&G Gilts attract an additional 0.5% pa. However, you can buy HSBC UK Gilt Index by 'phone and also Royal London Index Linked Gilt.

Overall, it's coming down to Fidelity and HSBC/L&G or Alliance and Vanguard trackers. The latter has slightly higher up-front fees but lower ongoing fees. As RDR might trigger changes that affect my decision, I'm tempted to go for the lower up-front costs as it gives me more "agility".

gadgetmind

gadgetmind wrote: »

but the L&G Gilts attract an additional 0.5% pa

Capped at £200pa in a SIPP and £45pa in an ISA, so perhaps not a big deal for you.

colshandy

gadgetmind wrote: »

I'm considering them as they let you hold the low-fee HSBC trackers and the similarly low fee Legal and General Gilts (All Stocks Gilt Index and All Stocks Index Linked Gilt). The only EM tracker I can find is the L&G Global EM Index.

Another option is Hargreaves Lansdown. I like their platform, but the L&G Gilts attract an additional 0.5% pa. However, you can buy HSBC UK Gilt Index by 'phone and also Royal London Index Linked Gilt.

Overall, it's coming down to Fidelity and HSBC/L&G or Alliance and Vanguard trackers. The latter has slightly higher up-front fees but lower ongoing fees. As RDR might trigger changes that affect my decision, I'm tempted to go for the lower up-front costs as it gives me more "agility".

Are you folks aware of opening an ISA through cevendish online which means you get lower charges that opening one direct with them....or is that pensions I am thinking of. What are EM trackers ? Or shall I just wait till I recieved/read this book :-)

Cheers