LISA investments and returns

Alexland
Alexland Posts: 9,639
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edited 23 December 2017 at 9:21AM in ISAs & tax-free savings
Hi,

As the LISA is nearly 9 months old I was wondering what choices other stocks & shares investors have been making and the resulting early performance achieved? Given favourable market conditions it would be hard not to have achieved a positive result.

We are investing for 20+ years to 60 and our LISAs are with Nutmeg on the 4/5 risk Fixed Allocation portfolio (80% shares, 20% bonds) and, after deducting fees, are up to just over £4,200 each which is slightly more than we would have achieved from the VLS80 or L&G MI6 funds over the same period on HL or AJ Bell (if they had the product at launch). I also received a £25 bonus outside the account for introducing my wife to open an account.

By comparison this year I deposited £4,028 into my son's Orbis Junior ISA (in the 100% shares fund), they added a £100 signup bonus to get to the annual limit and he is (with no fund or platform fees to pay) up to just over £4,600 now but he has been taking a high risk to achieve those gains. Still he can't read yet which stops him worrying.

So overall across these 3 small £4k accounts we have turned £12k into £13k so far with £2k of government bonuses due soon.

How are you doing with your LISA investment choices?

Alex.

Comments

  • SoozyJ22
    SoozyJ22 Posts: 3,239
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    I'm with Nutmeg using the 6/10 managed portfolio (though I'll probably change that now I know more about investing than I did when I took it out) which is currently at £4225 so pretty similar to yours.
  • dunstonh
    dunstonh Posts: 115,722
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    LISAs can have whole of market access just as normal S&S ISAs and pensions. So, you just need to pick any UT/OEIC, IT, ETF or basket of shares and there you have your performance.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Alexland
    Alexland Posts: 9,639
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    edited 23 December 2017 at 1:22PM
    SoozyJ22 wrote: »
    I'm with Nutmeg using the 6/10 managed portfolio (though I'll probably change that now I know more about investing than I did when I took it out) which is currently at £4225 so pretty similar to yours.

    Interesting there hasn't been any material difference in the return from VLS60 and VLS80 either over the past 9 months either (most of the difference was in Q1) so with Nutmeg we have ended up with similar results although I have taken a bit more risk and you have paid a bit more fees along the way.

    I am glad you gave me that information it gives my brain something to ponder - thank you.
    dunstonh wrote: »
    LISAs can have whole of market access just as normal S&S ISAs and pensions. So, you just need to pick any UT/OEIC, IT, ETF or basket of shares and there you have your performance.

    Each customer Nutmeg ETF portfolio is slightly different anyway depending on the contribution dates which means they are unable to publish results in the same way as a fund manager.

    The reason I posted this thread (and I mostly don't start new threads) is that it's not often multiple forum members have made near identical contributions to enable the above comparisons.

    Alex
  • cjv
    cjv Posts: 513
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    I opened a Nutmeg LISA back in mid May and have been putting in money each month since then. It is currently sitting at £3,521 with £3,400 Net Contributions.

    At the start I probably messed around with the risk, managed/fixed too much rather than setting and forgetting as I didn't really know what I was doing (I still don't :D). I settled on fixed allocation 3/5 a few months ago and will now leave it at that.

    My returns after fees currently shows as:
    +£121
    3.43%

    I am happy with it so far and am looking forward to watching it grow. Not looking forward to watching it shrink, but I am expecting it to happen at some point so that I don't panic when it does.

    I also have it in my mind that I will not be "losing" money unless the value falls below what I have contributed, so to me the government bonus is a safety net. This is probably an unwise way to look at things, but it helps me sleep at night!
  • Alexland
    Alexland Posts: 9,639
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    There doesn't seem to have been any material difference in the fixed/managed or 60/80 portfolio performance in the past 9 months so you have probably got away with your fiddling!

    I agree it takes some of the initial risk out of investing when the government are willing to boost your contributions by 25%.

    With the Santa rally we are now up to around £4250 each so when the bonus pays that's about 30% more than we have contributed.

    Alex
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