Stocks and shares NISA advice

Profish

Hi All

This is my 1st post on this forum so go gentle on me, and thanks for the advice in advance.

I currently have cash ISA with Natwest, with £13k in it. I was looking to top it up (no additions to it this year) but, have come to the conclusion that the interest on it (just got a letter with the rate going down further). Is pretty mediocre (less than 1% I think) and really not worth keeping hold of.

So I am looking to potentially invest in a stocks and shares ISA. I have been reading up on them but, am a touch lost.

Essentially, I don't really want to have to be buying and selling shares. So buying into various funds makes sense, however due to limited time. I don't really want to have to construct my own portfolio.

Ideally what I would like is to buy into pre-constructed medium risk portfolio and have it managed or perhaps tracked to a market (think this might be a EFT but forgive my ignorance).

I am looking to hold onto the NISA for at least 5 years and unlikely to want to draw on the money quickly if that info helps as well

Advice on if these products exist, and perhaps some pointers as to the best ones out there/simplest to access if they do.

If they don't any recommendations?

Thanks again

colsten

Good portfolio suggestions on http://monevator.com/category/investing/passive-investing-investing/


Don't go for a pre-selected ISA - these are generally bad value for money

BLB53

So I am looking to potentially invest in a stocks and shares ISA. I have been reading up on them but, am a touch lost.

Essentially, I don't really want to have to be buying and selling shares. So buying into various funds makes sense, however due to limited time. I don't really want to have to construct my own portfolio.

The easiest route is to open a S&S ISA with a low cost online broker like AJ Bell Youinvest or Hargreaves Lansdown. Put your cash in and then purchase a couple of low cost tracker funds or ETFs from the likes of Vanguard - https://www.vanguard.co.uk - the FTSE100 or All World (global) are popular as well as their Lifestrategy range which offer a mix of equities/bonds.

Take a little time to select your broker - there's a comparison page on Monevator.

For further research, you may want to check out a couple more sites (free) such as https://www.fool.co.uk and also https://www.diyinvestoruk.blogspot.co.uk which is good for more active approach covering shares and investment trusts for income.

colsten

BLB53 wrote: »

The easiest route is to open a S&S ISA with a low cost online broker like AJ Bell Youinvest or Hargreaves Lansdown.

[STRIKE]errrm. The OP has already made deposits this FY, so cannot just put money into another one now.[/STRIKE] Also, I am not sure the ones you listed are in fact the best choice. HL would also probably disagree themselves being called a low-cost online broker.

[STRIKE]There might be no need at all for the OP to consider a different platform - we don't know where their ISA is presently held and how easy or otherwise it would be to buy the funds they have in mind on that platform, but it could be perfectly sufficient for their needs.[/STRIKE]

Also, platform choice doesn't help with creating a portfolio.

Profish

Thanks both for the advice

Looking around the place that offers what I intitially wanted was nutmeg and they charge 1.3% in fees which seems high

Going to go ahead with BLB suggestions

Profish

colsten wrote: »

errrm. The OP has already made deposits this FY, so cannot just put money into another one now. Also, I am not sure the ones you listed are in fact the best choice. HL would also probably disagree themselves being called a low-cost online broker.

There might be no need at all for the OP to consider a different platform - we don't know where their ISA is presently held and how easy or otherwise it would be to buy the funds they have in mind on that platform, but it could be perfectly sufficient for their needs.

Also, platform choice doesn't help with creating a portfolio.

I didn't put money in this year as the rate was so bad

So will be moving money out of my cash ISA

Doesn't help with creating a portfolio, but I think going with low risk high bond type funds like the Vanguard seems solid to start with and a few smaller % of more aggro funds

Going to shop around look for a platform and also different funds. Any advice on funds that fit medium to low risk woud be aprreciated

Your_Hero

colsten wrote: »

errrm. The OP has already made deposits this FY, so cannot just put money into another one now. Also, I am not sure the ones you listed are in fact the best choice. HL would also probably disagree themselves being called a low-cost online broker.

There might be no need at all for the OP to consider a different platform - we don't know where their ISA is presently held and how easy or otherwise it would be to buy the funds they have in mind on that platform, but it could be perfectly sufficient for their needs.

Also, platform choice doesn't help with creating a portfolio.

OP said (s)he didn't make any contributions yet this tax year so is free to open a new NISA.


With that amount, you are probably not going to get the best by choosing your own funds to build a portfolio. Best to use a multi-asset fund, either active or passive versions will be fine and down to preference.

Profish

What is a multi asset fund?

I assume most of the platforms offer them?

colsten

Your_Hero wrote: »

OP said (s)he didn't make any contributions yet this tax year so is free to open a new NISA.

Apologies, seems the heat has got to me....I confused this thread with another one. Yes, the OP is free to open a new ISA (or two - an S&S one, and a cash one if they wanted to) and make new deposits

colsten

Profish wrote: »

What is a multi asset fund?

I assume most of the platforms offer them?

Vanguard LifeStrategy is an example of a multi asset fund

Your_Hero

Profish wrote: »

What is a multi asset fund?

I assume most of the platforms offer them?

It's simply a fund that invest across the broad range of asset classes, namely equities, property, bonds, cash. Some funds invest solely in equities, others just bonds, property etc. so for simplicity (for the amount in question as well as first time investing) just choose 1 or 2 funds that offer good diversification within it.