best way to invest in isa split or single

funnymonkey

Can anyone please help me,
I wish to invest in a stocks and shares isa, roughly about 12k a year.
I have found 5 good isa funds im thinking of and was wondering if assuming they give the same % return would it be best to invest in single or mutiple funds in order to benifit from compound profit?
Im aware that multiple funds would spread the risk but purely thinking of how to maximise the compound interest/profit.
Thank you

squeeks

A few funds are fine, but try not to over diversify otherwise your returns will always be low, but relatively certain - in which case you could have just gone with a single low cost ftse tracker or similar.

If it is just the re-investing, choose the Acc (Accumulation) version of the fund and you don't have to think about dividends, otherwise tick the box to buy more of the same fund from the dividends of the Inc fund.

Audaxer

funnymonkey wrote: »

Can anyone please help me,
I wish to invest in a stocks and shares isa, roughly about 12k a year.
I have found 5 good isa funds im thinking of and was wondering if assuming they give the same % return would it be best to invest in single or mutiple funds in order to benifit from compound profit?
Im aware that multiple funds would spread the risk but purely thinking of how to maximise the compound interest/profit.
Thank you

It depends what the 5 funds are. If they give a good global diverse mix of assets they are likely to give good long term returns. Generally the higher percentage of equities should give the portfolio better long term returns, but the portfolio will be more volatile, i.e. could drop 40%/50% in value at times.

In my opinion it would only be advisable to invest in one fund alone if it was a global multi asset fund with the right proportion of equity to bonds for your acceptable level of risk.

It would be interesting to know the 5 funds you have identified.

kidmugsy

Are you young enough to put some of the money into a LISA?

Brave enough to put some into a P2P ISA?

Linton

funnymonkey wrote: »

Can anyone please help me,
I wish to invest in a stocks and shares isa, roughly about 12k a year.
I have found 5 good isa funds im thinking of and was wondering if assuming they give the same % return would it be best to invest in single or mutiple funds in order to benifit from compound profit?
Im aware that multiple funds would spread the risk but purely thinking of how to maximise the compound interest/profit.
Thank you

To answer the question you raised...

Looking purely at the profit, it doesnt make any difference if you buy a single fund or the money is split into 5 funds each giving the same return.

Except of course for the minor point that, depending on your provider, you may incur higher fees buying and selling 5 funds rather than 1.