Best place to purchase investment trusts(ISA?)

amcluesent

Jupiter Green is quoted on the LSE (ticker JGC http://www.iii.co.uk/investment/detail?code=cotn:JGC.L&it=leit). IMHO not sure of the value of an ISA as the fund pays no dividends and any capital gains could be offset against your annual allowance (going to be £9,200)

cheerfulcat

thor wrote: »

I'm getting a bit confused now.

My plan is to buy between £500 and £1K in Jupiter Green Investment Trust PLC
Now I believe that this is a company so I would have to buy shares in it so from the above discussion can I take it that I would be better off using selftrade and their flat £25 fee for ISAs?

Yes, like all Investment Trusts it's a company so you buy shares in it. You may hold it in an ISA. Selftrade will charge £12.50 purchase/sale commission plus £25/year ISA fee. Alliance Trust charge the same commission for online dealing ( more for telephone deals ) but there's no fee for the ISA wrapper. EDIT: AT have a lot of fiddly little charges for things like corporate actions and cash withdrawal, though.

amcluesent wrote:

IMHO not sure of the value of an ISA as the fund pays no dividends and any capital gains could be offset against your annual allowance (going to be £9,200)

I would always encourage the use of the ISA as it makes subsequent trading a lot easier ( no paperwork to keep for the tax man, for a start, and the ability to make investment decisions without having to take tax into consideration ) and after a few good years, the annual CGT exemption begins to look very small indeed...

pamaris

I too want to invest in an IT but am at a complete loss. I have a selftrade account but I just don't know what to choose. There are too many choices and I can't sort the good from the bad. Like many I don't have large enough sums to warrant going to an IFA.

cheerfulcat

pamaris, the best way of choosing any investment is to have an idea of what you want it to do for you. You might want capital appreciation, or income, or capital preservation, or a combination of one or more of those. Then consider the level of risk/reward you want to be exposed to.

A portfolio of investments is usually better than just one but a good global generalist investment trust will start you off. You could look at Alliance Trust, RIT Capital, British Empire & Securities and Saints - all good for a core portfolio.

thor

cheerfulcat wrote: »

Yes, like all Investment Trusts it's a company so you buy shares in it. You may hold it in an ISA. Selftrade will charge £12.50 purchase/sale commission plus £25/year ISA fee. Alliance Trust charge the same commission for online dealing ( more for telephone deals ) but there's no fee for the ISA wrapper. EDIT: AT have a lot of fiddly little charges for things like corporate actions and cash withdrawal, though.

So the cheapest option for me will be Alliance Trust if I want to hold it an ISA or selftrade or AT for no ISA. I don't envisage having to make many transactions since I'm prepared to leave my investment for many years so none of those AT 'fiddly charges' should be relevant in my case.
In light of this would choosing AT be the best option for me(as long as they allow you to monitor your investment online)?

cheerfulcat

Hi, thor,

I don't envisage having to make many transactions since I'm prepared to leave my investment for many years so none of those AT 'fiddly charges' should be relevant in my case.

You have no control over corporate actions ( bar selling the security ) so over time your holdings will almost certainly be subject to a few. Probably not enough of them to cancel out the £25/year difference in charges for the ISA wrapper but something to bear in mind.

In light of this would choosing AT be the best option for me(as long as they allow you to monitor your investment online)?

It's probably the cheapest - you have to decide whether it's the best for you! The online portfolio facility is quite new with AT and still a little clunky but perfectly serviceable. Your best bet is to have a nosey round the two sites and see which is more comfortable to use.

thor

cheerfulcat wrote: »

Hi, thor,



You have no control over corporate actions ( bar selling the security ) so over time your holdings will almost certainly be subject to a few. Probably not enough of them to cancel out the £25/year difference in charges for the ISA wrapper but something to bear in mind.

Ah I did not know that.

cheerfulcat wrote: »

It's probably the cheapest - you have to decide whether it's the best for you! The online portfolio facility is quite new with AT and still a little clunky but perfectly serviceable. Your best bet is to have a nosey round the two sites and see which is more comfortable to use.

Yes I will do this now. Thanks.