What is the best investment option for Uni Student?

mazibee

Thanks every one for reply.

She will open a LISA account and will try to put the money in (only which she do not need next 5 to 10 years before she buys her house)

I was searching the google and

https://www.hl.co.uk/ (Master portfolios)

https://www.vanguardinvestor.co.uk/  (Life Strategy Funds, they have got so many so many options)

Any good fund where the money can be invested in growth stocks to get get good return in the next 5 years.

Also if she need to invest further £5K in S & ISA , which undervalued stocks from FTSE 100,  FTSE 250 or FTSE all share, she need to pick for investment for 5 years.

xylophone

Is she intending to open a cash LISA and a stocks and shares ISA?

mazibee

xylophone said:

Is she intending to open a cash LISA and a stocks and shares ISA?

Both.

Albermarle

mazibee said:

Thanks every one for reply.

She will open a LISA account and will try to put the money in (only which she do not need next 5 to 10 years before she buys her house)

I was searching the google and

https://www.hl.co.uk/ (Master portfolios)

https://www.vanguardinvestor.co.uk/  (Life Strategy Funds, they have got so many so many options)

Any good fund where the money can be invested in growth stocks to get get good return in the next 5 years.

Also if she need to invest further £5K in S & ISA , which undervalued stocks from FTSE 100,  FTSE 250 or FTSE all share, she need to pick for investment for 5 years.

If you mean a stocks and shares LISA there are only a limited number of providers ( see link in my first post) HL is one but Vanguard do not.
Whether investing via a LISA or a S&S ISA , avoid HL master portfolios - very expensive.

which undervalued stocks from FTSE 100,  FTSE 250 or FTSE all share, she need to pick for investment for 5 years.
If there were any undervalued shares do you not think the City professionals with their army of researchers might just have spotted them already ?
In any case normally she should avoid individual shares as it is too risky and avoid being concentrated in FTSE/UK .
Also 5 years is a minimum for stock market based investments , preferably at least 7 and ideally > 10 years .

mazibee

Albermarle said:

mazibee said:

Thanks every one for reply.

She will open a LISA account and will try to put the money in (only which she do not need next 5 to 10 years before she buys her house)

I was searching the google and

https://www.hl.co.uk/ (Master portfolios)

https://www.vanguardinvestor.co.uk/  (Life Strategy Funds, they have got so many so many options)

Any good fund where the money can be invested in growth stocks to get get good return in the next 5 years.

Also if she need to invest further £5K in S & ISA , which undervalued stocks from FTSE 100,  FTSE 250 or FTSE all share, she need to pick for investment for 5 years.

If you mean a stocks and shares LISA there are only a limited number of providers ( see link in my first post) HL is one but Vanguard do not.
Whether investing via a LISA or a S&S ISA , avoid HL master portfolios - very expensive.

which undervalued stocks from FTSE 100,  FTSE 250 or FTSE all share, she need to pick for investment for 5 years.
If there were any undervalued shares do you not think the City professionals with their army of researchers might just have spotted them already ?
In any case normally she should avoid individual shares as it is too risky and avoid being concentrated in FTSE/UK .
Also 5 years is a minimum for stock market based investments , preferably at least 7 and ideally > 10 years .

Thanks for your reply.
So which is the best fund for investing for 7-10 years with the aim of growth in the capital.

Albermarle

Normally for newer investors , people on this forum point people towards low cost multi asset funds. 
These funds are mix of equity ( many different company shares ) for growth, and bonds for stability . The higher the % equity the higher potential long term growth, but the more volatile the fund . Usually each provider of these funds offer a range from say 20% to 80% equity to suit different customers . Probably the best known are Vanguard Life strategy funds but there are others, such as HSBC global strategy and Fidelity multi allocator. They  cost between 0.22% and 0.25 % + the cost of the platform ( typically 0.45% to 0.15% ) 
If you want to go to 100% equity then a global index tracker will do the job best at similar cost .
If you have a LISA with HL , you can buy any of the above mentioned products on their platform , no need to buy their own expensive products , although you still have their platform fee of 0.45%
For a S& S ISA you have a much wider choice of platform . Vanguard have their own platform that only offers Vanguard products with a platform fee of only 0.15%  as one example .
Remember of course that whatever you do , growth is not guaranteed but history shows that kept long term investments should give a good average growth above inflation. 

quirkydeptless

Albermarle
Whether investing via a LISA or a S&S ISA , avoid HL master portfolios - very expensive.

 You might be thinking here of the HL Multi-Manager funds https://www.hl.co.uk/funds/hl-funds/multi-manager-funds which are indeed very expensive!

HL master portfolios are just suggested % splits of other funds, e.g. they suggest things like for a Medium Risk portfoilio:

Albermarle

quirkydeptless said:

Albermarle
Whether investing via a LISA or a S&S ISA , avoid HL master portfolios - very expensive.

 You might be thinking here of the HL Multi-Manager funds https://www.hl.co.uk/funds/hl-funds/multi-manager-funds which are indeed very expensive!

HL master portfolios are just suggested % splits of other funds, e.g. they suggest things like for a Medium Risk portfoilio:

Ok thanks for the clarification. However this master portfolio is probably more suited to larger funds and needs more effort than a multi asset fund .

mazibee

Albermarle said:

Normally for newer investors , people on this forum point people towards low cost multi asset funds. 
These funds are mix of equity ( many different company shares ) for growth, and bonds for stability . The higher the % equity the higher potential long term growth, but the more volatile the fund . Usually each provider of these funds offer a range from say 20% to 80% equity to suit different customers . Probably the best known are Vanguard Life strategy funds but there are others, such as HSBC global strategy and Fidelity multi allocator. They  cost between 0.22% and 0.25 % + the cost of the platform ( typically 0.45% to 0.15% ) 
If you want to go to 100% equity then a global index tracker will do the job best at similar cost .
If you have a LISA with HL , you can buy any of the above mentioned products on their platform , no need to buy their own expensive products , although you still have their platform fee of 0.45%
For a S& S ISA you have a much wider choice of platform . Vanguard have their own platform that only offers Vanguard products with a platform fee of only 0.15%  as one example .
Remember of course that whatever you do , growth is not guaranteed but history shows that kept long term investments should give a good average growth above inflation. 

Thanks for your reply.

Just for my clarification, as I am  new to this world of funds/ISAs

Daughter opens LISA accout with £4K , before December 2020, when she will get £1K bonus?

I am just assuming that she gets the £1k in Feb 2021, LISA account balance becomes £5K,

Can she invest that £5k held in LISA in HL;s Master porfolio? Any extra charges for that?

What happens (from tax point of view) if to value of the funds go up or down?

Which will happen in the next financial  year ie 05 April 2021, she will have to open one more LISA account or she will have to top up £4k more in her previous year LISA  account and will get £1k bonus from Government?

Are HL Master Porfolios good for putting money in?

grumiofoundation

mazibee said:

Albermarle said:

Normally for newer investors , people on this forum point people towards low cost multi asset funds. 
These funds are mix of equity ( many different company shares ) for growth, and bonds for stability . The higher the % equity the higher potential long term growth, but the more volatile the fund . Usually each provider of these funds offer a range from say 20% to 80% equity to suit different customers . Probably the best known are Vanguard Life strategy funds but there are others, such as HSBC global strategy and Fidelity multi allocator. They  cost between 0.22% and 0.25 % + the cost of the platform ( typically 0.45% to 0.15% ) 
If you want to go to 100% equity then a global index tracker will do the job best at similar cost .
If you have a LISA with HL , you can buy any of the above mentioned products on their platform , no need to buy their own expensive products , although you still have their platform fee of 0.45%
For a S& S ISA you have a much wider choice of platform . Vanguard have their own platform that only offers Vanguard products with a platform fee of only 0.15%  as one example .
Remember of course that whatever you do , growth is not guaranteed but history shows that kept long term investments should give a good average growth above inflation. 

Thanks for your reply.

Just for my clarification, as I am  new to this world of funds/ISAs

Daughter opens LISA accout with £4K , before December 2020, when she will get £1K bonus? Depending on exact date between 1-2 months

I am just assuming that she gets the £1k in Feb 2021, LISA account balance becomes £5K,

Can she invest that £5k held in LISA in HL;s Master porfolio? Any extra charges for that? No charges in HL on dealing in funds https://www.hl.co.uk/investment-services/lifetime-isa/charges

What happens (from tax point of view) if to value of the funds go up or down? No tax implications as in in an ISA

Which will happen in the next financial  year ie 05 April 2021, she will have to open one more LISA account or she will have to top up £4k more in her previous year LISA  account and will get £1k bonus from Government? Can use same account

Are HL Master Porfolios good for putting money in? "Good" in what sense?

Unless your daughter will be able to the full contribute £4000 per year for the next few years there is not really any rush to deposit in a LISA right now as she can catch up in future years (since withdrawal penalty means (after April) you get back less (6.25%) than paid in if she needs to access).


Edit - agree with previous posters that emergency funds should be the priority. Assuming your daughter is certain she wants to buy a property in the UK the lifetime ISA is the best product, but is there a chance this will not be the case?