What annual % return are people getting (S&S ISA)

Morphoton

I have been investing in equity income investment trusts and since 1995 the average annual growth rate is 8.1%. (I. e. every £1 to £5.14 over 21 years). The maths was easy as i have not added new money to this account since then. The current annual yield is around 4.8% which is equivalent to about 24% on the initial investment. Remember that the bulk of equity returns come from reinvesting the dividends. I plan to keep reinvesting them and then take them as income to supplement my retirement.

eskbanker

singhini wrote: »

I just put £92,000 into a CASH-ISA yesterday at a 5 year fix of 1.5%

<snip>

I'm too risk cautious to put money into a S&S ISA (but if I want returns then I have to have risk, its simple. I know it and you know it).

when putting the money into the CASH-ISA I did think I should put £10k-£15k into a S&S-ISA and take risk but I didn't (hence I was curious to see what other people are actually achieving).

I don't like risk

For someone who keeps proclaiming risk aversion, why would you place more money into a single institution (£92K) than is covered by FSCS protection (£75K, for now)?

Pincher

Hard to tell, because half the money is in cash deposit setups, up to five years. Overall, I'll be lucky to get 1.75% on the cash stuff.

Also, the Buy To Let seems to yield 3.75% gross rent, but it's the £200k rising to £860k over 18 years that is the juicy part.

Rough guess, the S&S stuff is up 10%~14%, this year, including dividends.
A lot of it is tax free, though, as I arranged to stay within basic rate tax band, and make maximum use of S&S ISA, £11,100 CGT allowance, and the £5,000 dividend allowance.

One fluke is, I bought some HSBC at £4.25, and it's now £6.73.
That is up 58%, and over 60% including dividends received. The dividend is so good, I might never sell them, so the 58% rise is meaningless.

singhini

eskbanker wrote: »

For someone who keeps proclaiming risk aversion, why would you place more money into a single institution (£92K) than is covered by FSCS protection (£75K, for now)?

I don't think the banks are going to collapse so the £75,000 limit doesn't really bother me. we live in a socialist country, I cant see the government not stepping in well before FSCA are needed just as they did with RBS (when Santander were paying 3% on their 123 account i was holding £118,000 with them across bank accounts and ISA's).

Perhaps I shouldn't write I don't like risk but "I prefer certainty"

singhini

singhini wrote: »

I don't think the banks are going to collapse so the £75,000 limit doesn't really bother me. we live in a socialist country, I cant see the government not stepping in well before FSCA are needed just as they did with RBS (when Santander were paying 3% on their 123 account i was holding £118,000 with them across bank accounts and ISA's).

Perhaps I shouldn't write I don't like risk but "I prefer certainty"

Sorry I lied, I really don't like risk.................. I prefer monopoly :rotfl:

cashbackproblems

Ytd is 16% thanks for us tracker and latin america which boomed!!

coyrls

singhini wrote: »

we live in a socialist country

What country are you living in?

singhini

United Kingdom

krish123

My portfolio is up around 17% since October 2014.


Does this mean my annual returns have been 8.5%?


I haven't taken any money out but drip feed money in monthly.


I want to try to understand how you calculate your yearly returns accurately, could anyone shed some light?


I just have the one investment which is Vanguards LS80%

JohnRo

search for CAGR - compound annual growth rate.

If you're moving money in and out of the investment you'll need to get it itemised in a spreadsheet and use the XIRR function which isn't complicated as long as you have the date, valuation and transaction information arranged properly.