Investment Noob - Cavendish/Fund Questions

Dird

Linton wrote: »

I have no idea what the 3-year mean return means. Suggest you ask them.

Thinking about it it could be the mean cumulative value when taking about 3 years e.g. 2013-2015, 2012-2014, 2011-2013 etc. Although you'd hope the 1.6% meant 60%

I've just realised a new question -_- If I have a HSBC Cash ISA, do I request they split it into 2 (cash and S&S) or do I just apply on a platform then they arrange it with the bank?

AlanP_2

I am with Fidelity (FundsNetwork) via Cavendish which is what you are looking at.

On charges you pay 0.25% pa of the "pot value" on a monthly basis. Of this Fidelity get the 0.2% as the Service Fee with Cavendish getting 0.05% as the Ongoing Charge.

From memory the same thing direct from Fidelity is 0.3% pa.

Most funds have a minimum monthly subscription but we (through a pension with them as opposed to an ISA) spread our monthly contribution such that less <£50 pm goes into 2 of the funds.

Effectively all they do is amalgamate lots of small purchases across all their customers so they are buying more than £50 pm.

I assume this is the same in the ISA offering but worth asking them.

Incidentally I have found Cavendish very helpful in the various email enquiries I have made to them. No question is too stupid believe me, I have been there before you.

As for whether an ISA is the appropriate wrapper for you, that depends on your personal circumstances really (age, mortgage, debts, other assets, partner, dependants, pension arrangements and the like).

No one size fits all answer but for a BR taxpayer the tax advantages of a Pension are obviously lower than for a HR taxpayer. Personally I would wait until we see what changes are made to pension tax relief, if any, if I wasn't gaining the HR payer advantage.