Phased S&S ISA

johnd_2

I was looking for an ISA where an initial investment is made into a holding account (presumably a cash ISA)  and then investments are progressively and automatically made on eg a monthly basis into a  pre-agreed S&S fund (eg an index fund) so that after eg 10 or 12 months all of the initial cash holding is fully invested. I can't quickly spot such a scheme but pretty sure that something like it must exist - guess I'm not searching for the most appropriate ISA type. Anyone able to help please?
(Just to be clear, I know that this can be done manually, but I'm looking for something where I can make the full initial investment in one hit and the subsequent phased S&S investment happens automatically.)

bowlhead99

If you are lazy you could pay an IFA to implement it for you. It's not a product that would have much demand because idle cash inside S&S ISA accounts doesn't attract much interest, and to put it in a competitive cash ISA first and then do multiple transfers over to an s&s ISA provider would be a pain.

At AJ Bell Youinvest and various other platforms you can do monthly dealing in a regular investment program. Youinvest is £1.50 per transaction executed by that method, which they do in bulk with other clients on the 10th of each month. So you could give them £20k and set your monthly purchase at £1666.66 a month including transaction fee and your cash balance would get used up over time.

By the time you got to the last month there may be insufficient funds for the last investment due to the 0.25% per year platform fee charged on the value of your investments quarterly, which might not be covered by dividend income if you are buying accumulating funds or investment trusts/ETFs which pay infrequently. So you might like to set it at say £1800 a month and come back after 11 months when most of the money has been spent, to see how it's going.