Stocks and Shares ISA

jamesd

temba, it's generally best to buy via a fund supermarket like Harvreaves Lansdown, to save some of the initial and annunal charges. The Abbey funds don't seem to do particularly well compared to others.

It's worth checking the annnual charges of your current investments to see if a fund supermarket can save you money if you transfer them.

temba

Thanks for the replies!

As I said, I'm a novice, though I am trying to do my homework before I do anything. Today I saw someone at Barclays about the same sort of thing. I will check out the supermarkets as you said.

I'm just dipping my toes in and seeing how cold it is. I'm grateful for any advice.

Temba

dunstonh

If you feel you are unable to make the decision without advice, then seek it from an IFA. Not a tied agent.

www.unbiased.co.uk is the UK database of IFAs and you can filter by postcode.

Like anything, if you are capable of DIY, then you can do it. If not, you can either make a fudge of it or get someone to do it for you.

JeremyZerg

Oh dear. Dont get your advice from a bank. They are tied agents and have limited investment knowledge and ability and product range.

Very true. In addition, the costs associated with investing seem to be much higher. You can expect to pay a set-up fee, 4.5% of your initial investment (and any further contributions) and the usual annual management charge.

With some of the fund supermarkets, costs are greatly reduced - and the choice of funds expands massively. There are many better performers than the Abbey MultiManagers.

Having said that, if you are not confident about making your own investment choices and do not wish to fork out for the services of an IFA, then MultiManager funds can be a good option.

isofa

Finding this thread interesting too!

Had a good look at self-trade.

So am I right in thinking... you can setup a trading account and make it part of a Maxi ISA? i.e. set up your own fund essentially choosing which shares to invest in, but keeping the ISA tax free status?

Is this better provided by Hargreaves Lansdown (https://www.h-l.co.uk)?

Or are there other companies that offer this feature?

Also do these allow investing in any shares (US and other markets) or just UK? (Effectively with the $2-£1 exchange rate, surely this should be a consideration for investment, effectively doubling a holding).

JeremyZerg

So am I right in thinking... you can setup a trading account and make it part of a Maxi ISA? i.e. set up your own fund essentially choosing which shares to invest in, but keeping the ISA tax free status?

Yes, you can. Check out the "Self Select ISA" - these are offered by many online brokers and fund supermarkets. 'Selftrade' is just one of these.

Also do these allow investing in any shares (US and other markets) or just UK? (Effectively with the $2-£1 exchange rate, surely this should be a consideration for investment, effectively doubling a holding).

I think you can gain access to other markets within SSISAs, yes. Certainly there are Unit Trusts and OEICs which specialise in foreign markets, yet can be purchased in GBP. And one can often invest directly in foreign stocks.

I would generally say that the less cash you have available to invest, the more you go for collective investments rather than individual stocks and shares.

Putting £1000 (say) in each of four or five funds provides instant diversification, whilst purchasing £1000 worth of shares in five FTSE 100 companies can leave you more vulnerable to market fluctuations.

But I'm really no expert!

Seen_the_light_4

Hillwalker

I was in a similar position to you with regards to putting £4k into a S & S ISA. I found Bestinvest.co.uk good for my needs for the following reasons:

1) It has a Portfolio Health checker which asks you some questions about what level of return and risk you are comfortable with. It will then select a range of funds for your investment. These can also be changed so your not committed at that stage

2) The funds are purchased through Cofunds which have low charges so you save on the initial and ongoing commissions.

Good luck

carnet

Seen_the_light wrote: »

I found Bestinvest.co.uk good for my needs for the following reasons:
The funds are purchased through Cofunds which have low charges so you save on the initial and ongoing commissions.

Think you'll find that the (bulk of the) IC discounts are Bestinvest's, not Cofunds.

Also, Bestinvest offer no ongoing (if, by that, you mean trail commission) rebates.

dunstonh

The trail rebates have to be balanced up against what you are getting. In reality the rebates are closer to 0.1 or 0.2% a year. That isnt a great deal of money for most people and the option of website tools, such as morningstar xrays or financial express analytic reports and other research info may be enough to justify not getting rebates on trail.

carnet

dunstonh wrote: »

In reality the rebates are closer to 0.1 or 0.2% a year.

With most (equity) funds now having a 1.5% AMC (and several even more), the average rebate is probably now closer to 0.25% - and as much as 0.375% with an increasing number of funds - and 0.48% with one I know.

With the inexorable upward trend of AMC's (shameful - the opposite is happening in the US - UK fund managers are cynically taking advantage of UK investors' apathy/ignorance) these can only continue to push up.

That isnt a great deal of money for most people

Agreed - for most investors. But for others with relatively large portfolios this can amount to quite a tidy sum - which grows with the portfolio value.

The trail rebates have to be balanced up against what you are getting.... the option of website tools, such as morningstar xrays or financial express analytic reports and other research info may be enough to justify not getting rebates on trail

Aren't these mostly available FOC online anyway ? And, if they're not, there are several others which are.