Long term investment

A_T

Alexland wrote: »

Not if you go with the unwrapped BG Share Plan which has no trade fees or ongoing platform fees.....

Alex

You're also paying 0.5% stamp duty every time you buy one of their ITs. If you're investing £100 per month it's going to be a few years before the annual fee with a Cavendish ISA exceeds 10 quid. The BG share plan seems like a lot of effort to save the cost of a round of coffees. Cavendish ISA also gives the opportunity to withdraw at no cost and switch into something else if you want to- plus of course there's never any tax to pay with ISAs which will be an issue once the capital grows to a large amount.

Really for the OP it's hard to recommend the BG unwrapped share plan over a Cavendish ISA.

Alexland

The lower management fee on SMT will save more than the stamp duty within a couple of years.

This is such a small amount of money the capital gains should be easily manageable.

Still lots of options for the OP.

Alex

A_T

Alexland wrote: »

The lower management fee on SMT will save more than the stamp duty within a couple of years.

This is such a small amount of money the capital gains should be easily manageable.

Still lots of options for the OP.

Alex

Indeed. And for the OP the unwrapped BG share plan is not a particularly good one

Alexland

A_T wrote: »

And for the OP the unwrapped BG share plan is not a particularly good one

Or a very good one if they want to own what they have chosen, for the long term, at a low cost

A_T

Alexland wrote: »

Or a very good one if they want to own what they have chosen, for the long term, at a low cost

Depends on how "long term". The longer that term the less sensible it is to invest outside a wrapper. The taxman never forgets

short_butt_sweet

Alexland wrote: »

Or a very good one if they want to own what they have chosen, for the long term, at a low cost

i sort-of see the logic here, given that the OP specifically mentioned scottish mortgage.

but i still think it's a bad approach. generally, the best way invest £50 or £100 a month is into a well-diversified fund, in an ISA, using a provider who doesn't charge a fixed fee each time you buy. there are plenty of provider where you can do that (some of which have been mentioned already).

mostly, you can't buy investment trust (such as scottish mortgage) without pay a fixed charge each time. yes, currently the BG share plan is an exception. but what happens if they introduce higher charges for that plan (as some other, similar investment trust share plans have done)? you probably have nowhere else to go, and would need a new strategy to keep your investments cost-efficient.

also, the hassle avoided by keeping everything in an ISA, to avoid even needing to find out about capital gain tax, is worth something. i should know, as somebody who's failed to avoid it!