Stocks and Shares ISA help for low risk tollerence user

First_Time_Saver

I have a stocks and shares ISA with Halifax.

I have invested the £5340 max allowance as Cash and so have £5340 left to invest in Stocks and Shares.

I would like to make use of this allowance, however I am looking for a low risk investment.

I don't feel too comfortable investing in a company. Are there low risk bonds available?

If anyone can suggest some funds/bonds that would be low risk, that would be great.


Many thanks.

dunstonh

I have a stocks and shares ISA with Halifax.

Your have our condolences.

I don't feel too comfortable investing in a company. Are there low risk bonds available?

yes there are.

If anyone can suggest some funds/bonds that would be low risk, that would be great

Those of us that can cannot and the board doesnt like it when funds are recommended. So, often you find its more pointers and discussion to lead you in the direction for you to decide yourself rather than point you at specific funds.

What is your definition of low risk?
Would you not be concerned that leaving yourself open to just one asset class (or two if you include cash) leaves you in a possibly riskier position compared to using other asset classes as well?

First_Time_Saver

Hi dunstonh,

Thank you for your reply.

Was Halifax S&S a poor choice? I chose them as I bank with Halifax and find the interface very nice to use. (as well as the costs seeming reasonable)

Right now, I'm not too concerned about putting everything in one/two asset classes. I was hoping to keep everything as cash for the next 2 years and then look at diversifying with some funds/company shares.

My main reason for using the S&S is to make use of this tax free allowance. And so anything as close to 'cash' as possible for now would be perfect. I've tried to find bonds in my Halifax S&S account but don't seem to be able to find them at the moment.

If you are able to offer any pointers instead of specific fund recommendations, that would be great.

jimjames

Have you actually put any money into the Halifax S&S account? It sounds like you may not have yet done so if you've not bought anything.

If this is the case then you could open an account with a more flexible provider than has lower charges and wider range of investments.

Funds are less risky than individual shares (assuming same geographic location) as your investment is spread over many companies not just one. Personally I started out with UK investments, as the FTSE 100 companies get some 70% of their earnings overseas it is still a good way to get exposure outside of the UK. If you go for a tracker make sure you get one with the lowest charges - Halifax will probably be over 1% annual fees when the lowest are 0.25% or less.

Yorkie1

jimjames wrote: »

Funds are less risky than individual shares (assuming same geographic location) as your investment is spread over many companies not just one. Personally I started out with UK investments, as the FTSE 100 companies get some 70% of their earnings overseas it is still a good way to get exposure outside of the UK. If you go for a tracker make sure you get one with the lowest charges - Halifax will probably be over 1% annual fees when the lowest are 0.25% or less.

Is there a good place to look to compare overall fees for similar types of trackers?

MoneySaverLog

First_Time_Saver wrote: »

I have a stocks and shares ISA with Halifax.

dunstonh wrote: »

Your have our condolences.

Not the best of places, banks, for S&S ISA's I believe :rotfl::rotfl::rotfl: