Assistance with S&S Isa

AMD1 · 28 April 2020 at 2:44PM

Hi,

I am in my early 50's and relatively new to investments. I have no ISA's at the moment and I am looking towards a Stocks & Shares ISA to try and grow value. It would only be a small lump sum of around £1,000.00 - £2,000.00 to start with to see how it goes. I have not chosen a platform as yet and whilst I have been looking at investment funds etc, and trawling this Forum, it starts to become a bit overwhelming. As far as funds are concerned, I am caught between a completely DIY fund to save on fees, a portfolio of self managed funds or a portfolio of funds on auto-pilot so to speak. I am leaning towards HL or AJB as these companies appear to be very popular and have a number of features which other platforms do not.

I am unaware how difficult it becomes managing a DIY or self managed portfolio however I am quite willing to learn along the way. Perhaps a managed scenario is recommended, although I see the overall fees can be approaching 2%?

Any guidance/tips from fellow forum members would be very much appreciated.

Many Thanks

Andy

george4064 · 28 April 2020 at 2:47PM

As you are completely new to S&S ISAs and investing in general, I strongly recommend you read this page first: https://www.moneysavingexpert.com/savings/stocks-shares-isas/

It provides a really broad overview of investing, what to think about and your options.

Give that a read and come back here with any questions.

dunstonh · 28 April 2020 at 4:12PM

I am leaning towards HL or AJB as these companies appear to be very popular and have a number of features which other platforms do not.

HL and AJB are no more or less functional than the other platforms out there. I suspect you are comparing them with other "providers" rather than "platforms".

Perhaps a managed scenario is recommended, although I see the overall fees can be approaching 2%?

Which sort of makes a mockery of doing DIY when the annual costs are nearly double what an IFA would be. Although an IFA will not be interested in just a few thousand. With small amounts, the robo services are likely to be better value.

Is ISA the best option for you or would pension be better? (same investment options, same charges, just different tax handling)

Albermarle · 28 April 2020 at 5:16PM

For relatively small amounts like this , you should invest in a simple multi asset fund - typical charge 0.25% pa + platform charge- 0.45% ( HL ) to 0.15% ( Vanguard) . In any case as a rule of thumb you should keep total charges a maximum of 1 %, preferably less.
That would apply also for a pension as well as a S&S ISA.