New Investor, ISA & JISA. Funds.

cloud_dog

Before you head off to explore strange new platforms and go where others have probably gone before.... How old is you wife/partner? If not 40 yet then opening a LISA in her name and using it would help you receive an additional 25% from the Government.

(couldn't see your wife's age mentioned)

Evil_Skint

Cloud_dog

Yes thank you, I have started her LISA already and will put the max 4k in per year. She`s 37.

AlanP_2

Evil_Skint wrote: »

Secondly...

Would the aim of sticking to just one Global Tracker Fund and just one Multi Asset Fund be suitable for both an ISA based on 10-15 years aswell as the JISA`s. I assume so.

You don't really need both.

A Global Tracker Fund will invest in n000 companies across the globe in relation to their market capitalisation. What this means is that you end up owning a lot more Apple / Google etc. than you do Unilever or Shell or Nestle and so on.

Many fund houses offer one and they are all slightly different in terms of which index they track. For example some may be All World so would include UK and Emerging Markets, some may be Developed World so exclude Emerging Markets and both of the above could be ex-UK (as many UK investors will use them to supplement UK investments and don't want more UK exposure).

Dev World funds often have a lower ongoing charge than All World as there are higher costs associated with buying stock in some developing countries compared to the "low cost" of Western stock exchanges.

Take a look at the fact sheets for the Vanguard fund range to see examples of what I mean, and then research similar offerings from other fund providers.

A multi-asset fund like the VLS range will typically use Tracker funds under the hood but will not just be a global, cap weighted equivalent of a Global Fund.

Most include an allocation to Bonds and some have Property or other alternatives in small amounts as well.

The "recipe" used by each supplier to create their unique mix of Asset Classes will vary as will their attitude to how much to allocate to each geographic area.

VLS for example has about 26% UK equities, a Global Fund would have about 5/6% as that is the "weight" of UK stocks in a global basket.

Given that the timecales for your JISAs and your ISA are not that different (say 14 - 18 years) then having the same investments in each at this stage is not a problem but may need reviewing as that clock runs down.

For example if your 4 year old wants his JISA cash for Uni at 18 then having it invested in a high equity portfolio in the couple of years or so leading up to that "hard date" would risk a major fall in value just as he completes his application form.

You on the other hand might well be planning on taking 5-10% a year for 10 years from your ISA to bridge a gap between retiring and getting State Pension so you would still want a reasonable amount in equities to carry on generating returns for you.

Evil_Skint

Thank you Alan, all makes perfect sense. I am leaning towards the VLS80 now for larger deposits, either via HL or direct through Vanguard, although the thought of changing all accounts etc ..ahh. The fees seems to be 0.22 by vanguard and 0.67 via HL, although cant figure out yet if HL offer the 0.22 back via their loyalty point offer. Confused.com

Thanks for your help so far.

AlanP_2

Evil_Skint wrote: »

Thank you Alan, all makes perfect sense. I am leaning towards the VLS80 now for larger deposits, either via HL or direct through Vanguard, although the thought of changing all accounts etc ..ahh. The fees seems to be 0.22 by vanguard and 0.67 via HL, although cant figure out yet if HL offer the 0.22 back via their loyalty point offer. Confused.com

Thanks for your help so far.

I don't use either platform but AFAIK HL charge a 0.45% fee and Vanguard charge a 0.15% fee.

The 0.22% fund charge for VLS will be dealt with inside the fund and will be the same whatever platform you use.