Ok then - How do I choose a S&S ISA!

Aegis

Lokolo wrote: »

Hehe, well I have a few questions anyway.

I am looking for some low risk funds to start putting money into S&S ISA from next week. I have been using iii website as I have found navigating round extremely helpful and understanding funds also extremely helpful. These are the funds I am thinking of choosing:

• City Financial MM Growth Acc
• AXA Framlington UK Select Opps Acc
• New Star Tactical Portfolio A
• Stan Life Inv UK Opps Ret Acc

However I am trusting iii's view on the risk (also FTs) and was wondering how useful they are? I can imagine FT are extremely useful and iii also too as they are run by Halifax.

Also, they have a Financial Crown Express Rating. I have never heard of these so I am not sure how reliable they will be, looking at their website their ratings seemed to be made of reliable data but I just would like clarity with them?

Also, finally, should I go with HL or iii? It seems that HL have a higher % to buy (being around 5% for all, whereas iii is 1%) and I can't see any other problems so was thinking iii. Is anyone else using iii? + or - feedback about them pleeeeeeeeeeeease.

Thanks for any advice

I picked the New Star one at random, and it has an initial charge of 0.25% and an annual charge of 1.25%. To find the actual initial charge, take the Initial Charge figure and subtract the Initial Saving figure.

jamesd

At 1% the iii charge is higher than HL usually charges. HL shows you the charge and its discount, which is usually all or all but 0.25% of it.

Lokolo

Doh! So they're even cheaper wooooo.

I think I will use iii fund filter then buy on HL hehe.

stphnstevey

Ok, so one year on!

Performance - well, peaked at around 7% quarter way through year, but then rapidly plummeted and now average about 0.5% return.

I had invested in several UK/European funds in the hope to give my portfolio 'stability' but it seems these funds are the ones dragging my portfolio down. The emerging markets and Latin America funds have compensated for the poor UK performance (giving as much positive return as the UK gave negative)

Looking at my funds (even the UK ones) - over a 5yr period, their performance is still top in their sector. However, over this yr the UK funds have not done well in their sector

2nd year, now what to do with
a) CURRENT FUNDS - well, if I sell my poor perfoming funds now I am going to make a loss. Don't need to take money out, so may as well leave it. Also, I personally think that there will be an upturn in the UK Market (or at least a bounce back), backed by Goverment action. So will keep what I have for now and trust in my original choices. One years performance is not long enough to judge

b) FURTHER INVESTMENTS - I can now turn my Cash ISA investments into S&S ISA as well as investing my normal ISA allowance - potentially a very sizable sum for me (almost double last yrs investment).

Do I want to invest in these turbulent times?
Fund prices could be cheaper?
What alternatives are there? Cash? Not bad at 6.5%?

Moneywise magazine often has funds listed by past performance in the back of their magazine - anyone have any other sources for this info? I also use Trustnet that is able to compare by past performance (upto 5yrs)

jamesd

stphnstevey, for each fund ask this question: "Would I invest this much in this fund today, if not how much would I invest in it today?" Then act accordingly.

That may include things like selling a fair chunk today in anticipation of further drops then planning to buy back regularly.

cagey76

heres my update;

took out our (myself and mrs cagey) first ISA's at the end of last year, going for a variety of funds and ishares/etfs stocks. Our return between us is roughly 0% although mine returned slightly less than 0, and as per our bet, I have to buy dinner.

Its been quite a learning curve, and I have must admit that Mrs C has taken to it better, working out her choices, selecting suitable funds and being prepared to watch from a distance. I have been more involved and have changed my mind a few times. The swing in prices in the Brazil ETF I hold has been quite fascinating, and checking the price every day is not always good.

For this year we are going to have a basic strategy, probably involving more commodities, and a couple of UK blue chip shares, but monitor as we go along. We'll probably place 1200 into alternate ISA's each month, to average things out. The existing fund choices from 2007/2008 money will stand.

On top of this I obviously need a small trading account, to play with, for which I'll use a spread b*tting account with IG.

jem16

Bump.

There are so many people asking abouit S&S ISAs this should really be a sticky.

stphnstevey

jamesd wrote: »

stphnstevey, for each fund ask this question: "Would I invest this much in this fund today, if not how much would I invest in it today?" Then act accordingly.

Thanks James

Didn't really take what you said in at first, but just re-reading it makes perfect sense now!


Still not decided whether to invest more money this year. Been listening to a Warren Buffet tape and now considering investing in shares (particularly Coke and Gilette!). No money I can't afford to lose.

I know I am narrowing my risk even more, but my experience so far has been that last year alot of people advised me to take out a large UK portion in my portfolio to counter balance any instability in the emerging market funds I wanted to invest in. Despite my gut telling me that I should just invest in the emerging market funds

Now 1yr on and it s the UK funds pulling my portfolio down and the emerging market funds propping it up!

I know it could have been the other way round, but either way, they cancelled each other out to give no return.

I want plan to invest in companies I know are currently and ten years away are going to do well. To build a good portfolio base.

stphnstevey

jem16 wrote: »

Bump.

There are so many people asking abouit S&S ISAs this should really be a sticky.

With so many posts are you not a moderator and could make this happen? or know a man who can?

jem16

stphnstevey wrote: »

With so many posts are you not a moderator and could make this happen? or know a man who can?

Unfortunately neither applies.

Still, I'll keep trying.