ISA S&S Investment choice

jamesd

It's based on some assumptions. Like the ETFs having the same performance. Index-linked gilts are the sort of thing that has bubble pricing. Lower grade corporate bonds not so much. With an ETF like a gilt one you're not choosing your own investments any more than with a fund, just varying how the manager of the collective investment picks what to invest in.

I suppose you were also told that the equities included selected smaller companies and medium sized companies as well as larger companies? The bit about them all doing well or implying that it only picks those that are doing well is rubbish. This doesn't mean the general advice is wrong, just that you don't seem to be getting an accurate answer. More like an IFA trying to reassure you so you'll stop asking questions than telling you a more complete version of the facts.

Supernova

Thanks James. I kind of felt a little like that, but it seems par for the course with FAs.

The TER is 1.44% and apparently projected growth of the portfolio is 8-9% net...does that seem feasible in the current climate?

Cheers

jamesd

Considering where it's starting from at the moment that doesn't seem unreasonable.

EdGasket

I'd say 8-9% pa return is highly unlikely. I haven't worked it out but I'd be surprised if my pension has achieved much more than 1% pa averaged over the last twenty years and that was with a mix of stocks, gilts, emerging markets, all sorts! I think a return of 6% pa would be tops and by the time you knock off 'management charges' you are back to 4 to 5% at most.