stocks and shares isa

smudger1964

I am thinking of dipping my toe into a stocks and shares isa I know past performance is no indication of future value but wondering which would be better a L and G uk index tracker or a vantage stocks and shares isa from hargreaves landsdown where could I go to see what is best ..it will only be a small amount at first and I know you have to keep it in there for at least 5 years

dunstonh

If you are only having one investment fund then you should aim to have a multi asset fund. Not a single sector fund. With just UK equity you are effectively gambling on UK equity being the best place going forward for x number of years.

I know you have to keep it in there for at least 5 years

The economic cycle is closer to 10 years nowadays. So, whilst you may be fine for 5 years, it could be closer to 10.

smudger1964

"a multi asset fund" could you point me in the right direction of some please?

Yorkie1

Not an answer to your question above, but if you do decide to go for a [STRIKE]Vantage[/STRIKE] Vanguard S&S ISA, compare the charges / costs. Hargreaves Lansdown are presently more expensive than other hosts for small amounts. When I started my [STRIKE]Vantage[/STRIKE] Vanguard 80% ISA recently, I went with Charles Stanley Direct as they were cheaper than HL until I reach about £9K, I think.

Rollinghome

smudger1964 wrote: »

"a multi asset fund" could you point me in the right direction of some please?

For unit trusts you'll find managed multi asset funds among the IMA's Mixed Investment and Flexible Investment sectors. Those with a greater the proportion of equities are generally assumed to carry a higher risk. Some would also include some in the Targeted Absolute Return sector though most have disappointed. Vanguard offer several mixed asset tracker funds in their Life Strategy range.

Among Investment Trusts you'd be best looking among Global or Global/UK Growth and Income funds with savings schemes. Alliance Trust is the steady grandaddy of them all with the added advantage of a very good lunch for shareholders at presentations (something unit-trust holders don't get). Others are heavily skewed towards wealth preservation rather than outright growth so be sure to decide what your objective and attitude to risk is. Some stuff about them at http://www.whatinvestment.co.uk/investing-in-funds/investment-trusts/1053952/regular-saving-with-investment-trusts.thtml

S&S ISAs are a great idea for the very long term such as providing for your old age. They are far less appropriate for shorter terms such as saving for a house deposit.

Vortigern

Yorkie1 wrote: »

When I started my Vantage 80% ISA recently...

I think you meant Vanguard

Yorkie1

Vortigern wrote: »

I think you meant Vanguard

Think you might be right!

I was getting confused with my bank account; knew something didn't read quite right but couldn't work out what!! :rotfl:

bigadaj

Vortigern wrote: »

I think you meant Vanguard

Vantage was HLs term for their own isas for a while but not sure if this is still the case.

jimjames

bigadaj wrote: »

Vantage was HLs term for their own isas for a while but not sure if this is still the case.

Vantage is the name that HL use for their platform/ISA products.

smudger1964 wrote: »

which would be better a L and G uk index tracker or a vantage stocks and shares isa from hargreaves landsdown where could I go to see what is best

They are 2 different things. It's like saying what is better a car or a Ford Focus? The Vantage ISA from HL allows you to hold many different funds inside it. An L&G product will only allow you to put L&G investments in it so the Vantage one is far more flexible.

smudger1964 wrote: »

I know you have to keep it in there for at least 5 years

You don't have to keep it for 5 years. The beauty of an ISA is that you can sell at any point. If you need the money you can sell to get cash. If the investments have done well after the first year and you decide you want to cash them in then there is nothing to stop you doing that. Ideally you should have a long term horizon for investing in case markets drop and you need to get the money out but there is nothing that prevents you selling at a loss if you need the money.

Rollinghome

jimjames wrote: »

The Vantage ISA from HL allows you to hold many different funds inside it. An L&G product will only allow you to put L&G investments in it so the Vantage one is far more flexible.

I'd agree with the general point but perhaps worth pointing out that a tracker ISA taken out directly with L&G could be subsequently moved to HL or any other platform at no cost if required.

To transfer an ISA away from HL elsewhere costs £30 per stock - they're one of the most expensive around - unless sold and converted to cash.

They would also currently charge an additional £2 per month on top of the AMC to hold that L&G fund. Their fees will be changing in the next few months and they have as yet given no indication of what the new charges will be.

To extend your analogy, beware of some expensive funds that are no more than Ford Focuses with go-faster stripes

smudger1964

thank you for your input..So to sum up hargreaves and landsdown seem to charge a lot for investing with them
I want to invest in something I can just do and forget about for a while and not get charged a lot for doing so
I have only had cash isas before but the interest rate is very poor now
I see that the legal and general uk index tracker charges are 0.56% on the all share one or 0.83% on the top 100 companies and no charges for buying or selling..Is this good?
would one of these be a relatively safe bet if I say kept it in there for 10 years or more
is the all share or the top 100 more risky or doesnt it make much difference