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Making use of Stocks and Shares portion of ISA - With low risk

2

Comments

  • debbie42
    debbie42 Posts: 2,586 Forumite
    djblamire wrote: »
    Is Hargreaves & Lansdown the cheapest place to invest in eg, Invesco Perpetual High Income ??

    I notice there is no inital fee, and the discount the annual fee slightly.

    I've just noticed that Selftrade offer no initial fee, and £25 annual fee (which will work out cheaper).

    Anyone got any experience with Selftrade, and is this correct, or would that £25 annual fee be in addition to the one mentioned by Invesco ?

    I've not used Selftrade for funds, though have read on this BB that they aren't the best for that. Might be worth a search to find more info on the posts.
    Debbie
  • si1503
    si1503 Posts: 551 Forumite
    djblamire wrote: »
    Is Hargreaves & Lansdown the cheapest place to invest in eg, Invesco Perpetual High Income ??

    I notice there is no inital fee, and the discount the annual fee slightly.

    I've just noticed that Selftrade offer no initial fee, and £25 annual fee (which will work out cheaper).

    Anyone got any experience with Selftrade, and is this correct, or would that £25 annual fee be in addition to the one mentioned by Invesco ?

    Thanks
    Daniel
    I would assume that would be additional to the annual management fees, Invesco will charge a set % on all investments in their funds regardless of the discount broker, that is how they get their cut.
  • torridon_2
    torridon_2 Posts: 33 Forumite
    Selftrade are not the best place to use for funds because although they are offering free purchase of many funds at the moment you will need to pay a dealing charge when you sell. This makes it expensive if you want to move money between funds (£12.50 per transaction). Selftrade are however competitively priced if you wish to purchase individual shares.
    H & L refund all or most of the initial charge on many of the funds in their supermarket and also do not charge if you wish to sell.
    For instance recently I transferred a tracker fund into H & L and have been gradually spreading the money around a variety of funds a £1000 at a time and haven't had to pay any fees for this.
  • dunstonh
    dunstonh Posts: 117,990 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Switching of funds with self trade comes out at £25. one £12.50 for the sell and another for the buy. So, they are good for shares but expensive for funds.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • djblamire
    djblamire Posts: 299 Forumite
    Thanks to everyone for their comments.

    I will probably be going with H&L.

    Thanks
    Daniel
  • Angelselondon
    Angelselondon Posts: 267 Forumite
    After year's of saying I'm going to do this, I opened up the M&S Ethical Fund for my stocks and shares portion of my ISA. Thought I'd go green, it didn't have an initial charge. I set up direct debit to divide the allowance over the year to get an average price.
    HOW MUCH CAN YOU SAVE?: OLYMPIC CHALLENGE 2008
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  • saving-mad
    saving-mad Posts: 425 Forumite
    we too thought our money could do better than in the bank, so we quite blindly gave the CIS a call, (traditional i thought) our advisor phoned last week to say our £4000 investment each in the mini stocks and shares had gained 15% intrest in the year. Pretty good i think but i cannot believe how easy it all was.
    Owner of a cute cottage in the North York Moors :j
  • dunstonh
    dunstonh Posts: 117,990 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Remember anyone can make money in a growth market. Judge the portfolio on how it performs when there has been a crash.

    You need to make sure that the funds match your attitude to risk.

    Just picking on saving-mad purely for example purposes (if you dont mind ;) ) That £4000 is eggs all in one basket. The area invested in lost 40-45% during the last crash and barely made it up again since. You would be better with four funds of £1000 each which average out to match your risk profile but ideally in different areas so you mix and match.

    Tied agents, like CIS, cannot portfolio plan so they often use just one or two funds (and its documented that you chose them, not they recommend them). It's a limitation of tied advice that most dont realise. So, if you need advice, then remember not to get it from a tied agent. Also, remember that the cost of advice is not always that expensive. The IFA average is 1.8% commission. If you did that in April, you would covered that by now and be in profit. If you know what you are doing, then thats fine as well but make sure you get it from the right place. Dont go direct to fund managers or providers thinking it will be cheaper. They will often keep the commission at the full 3% for themselves rather than rebate. If you are going DIY, then use an execution only IFA, like HL, as that is the most cost efficient route.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • macca64
    macca64 Posts: 286 Forumite
    Part of the Furniture Combo Breaker
    I actually transferred out of CIS, as I wasn't happy with the performance, and range of options available. Moved to HL and picked my own funds.

    If you look on Hope this works

    You can pick your funds and compare performance against other funds. I compared my CIS UK Growth fund against the Invesco Perpetual Income fund, and the Invesco one has outperformed the CIS one quite alot!
    2014 running challenge 587.4 miles / 250 miles
  • djblamire
    djblamire Posts: 299 Forumite
    Would someone who is a customer of Hargreaves & Lansdown please send me a Private Message.

    I believe they have a recommend a friend scheme.

    If I decide to go ahead, we might as well make use of it. (Although I'm not sure exactly what we both receive).

    Thanks!
    Daniel
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