Suggestions Needed for Investing 20K S&S ISA, Is it right time to start investing?

mazibee

Dear Experienced Fellows,

Any suggestions for investing £20K.

I plan to open separate S&S ISA, one in my own name and one in my wifes name.(£10K each) Is it a good idea to go for two individual separate S&S ISAs.
I plan to keep one S&S ISA for buying the funds for long term and other where I plan to buy selection shares.
Please can someone recomemnd cost effective platforms for buying funds and buying the shares.
I was looking a Hargreaves Lansdown but they charge £8.95 for each trade, looks quite expensive for buying and selling shares through HL but looks cost effective for funds.
Any also suggestions on which funds to buy? (Time Horizon 15 Years)
HSBC FTSE All World Index Class C - Accumulation
Legal & General Global Technology Index Class C - Accumulation
Vanguard FTSE Global All Cap Index Accumulation (GBP)

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows
BP, RDSA,
Lloyds , HSBC, NWG
TSCO, SBRY, MRW
BATS,IMB
UNLR, RB,
GSK, ANZ
HL
LGEN,AV
SMT

As lockdown has been announced, market seem to be a bit negative and US elections in few days,  is it a good time to enter the market or wait till dust settles atleast US Elections are over as Trumo VS Biden have different agenda Trump wins US markets will rise, Biden wins US markets down.

Thanks in advance

@AnotherJoe , @bowlhead99 , @Albermarle , @DireEmblem , @steampowered , @Davidmt3 , @Sailtheworld , @MaxiRobriguez , @Alexland , @Eco_Miser

DireEmblem

What timeframe are you planning to invest - I'm going to assume long term meaning 10 years plus.
Also - do you have a preference on how you wish to split your funds between individual stocks and Mutual fund/ETFs?  My view would be to have at least 80-90% kept in the global funds.

For mutual funds, I would probably go with Fidelity, for the 0.35% fee, and choice of mutual funds available on the platform.
For ETFs, I would probably go with one of the new kids on the block - Trading212 for example as there are no platform or additional trading fees.
Now for dealing with individual stocks, you can put these in your second Trading212 isa, if you're not planning to buy the full 20k allocation of ETFs in a year.  Otherwise, remember that you can take advantage of a 12k free capital gains allowance each year.

For fund choice - your selection is fairly reasonable for long term investing, as long as you weight towards the global equity funds.  The cost of your HSBC FTSE All World Index Class C Accumulation, would be 0.13% plus the 0.35% Fidelity fee.  If you were to however, purchase VWRP Vanguard FTSE All World UCITS ETF Acc through a 212 ISA, your costs should be 0.22%(no platform fee).  Compare the performance profile on Morningstar - almost identical as they both track the index rather well.  Stick with the HSBC fund on a platform like Fidelity, don't bother with Vanguard FTSE Global All Cap Index Accumulation (GBP)  as it has the same performance profile/tracking aim, but you will pay both the 0.23% fund fees and 0.35% platform fee.

As for stocks, I only hold two of your selection, but that is through my own personal choice.  You are correct, and will likely find that a rising tide lifts all ships, so I would suspect you would make a profit if you purchased all those you noted.  Whether that profit would beat the performance of the funds you choose, is another question that only time can answer.

mazibee

Thanks @DireEmblem for your reply.

I plan to split £20k in two S&S ISAs (one 10K S&S ISA for a fund and other 10K S&S ISA for shares

In one S&S ISA , for investing in funds the plan is for 10-15 years or a bit more.

I like  HSBC FTSE All World Index Class C, and  to go for that

Any other recomendations for adding one more fund for a bit of diversification keeping previous performance and current World economic situation.

Once  have invested our initial £20K , we annot add £20K ( my ISA allownace each year so even we take the money out and invest again in the fund ISa will be OK for us)

For the second S&S ISA where i want to pick the stocks, plan is when I have the gain I will sell the stocks ultimately and will transfer them to the my other S&S ISA account (Fund investing) either the same year or the next.

I dont want to trade daily or weekly , buy few stocks from the list , when they are in profit 25-30% I plan to sell and realize the gain keeping cash in the S&S ISA acocunt, buy some other shares and doing like that.

Investing/ Trading for the first time Trading 212 seems a bit riskly, but the advatage is if I have to buy and sell 5 shares x 2 , on HL platform for the first month I will be charged £89.50 plus their other charges but on the other hand on Trading 212 it will be free.

Also do you mind sharing the two stocks you hold?

Any more suggestions will be highly appreciated.

IvanOpinion

Maybe consider a good multi-asset fund like Bailie Gifford Managed or Royal London sustainable world?  Both of these have been performing very well.  Maybe put yourself into your selection of funds and your wife into a multi-asset.

Stargunner

mazibee said:

Dear Experienced Fellows,

Any suggestions for investing £20K.

I plan to open separate S&S ISA, one in my own name and one in my wifes name.(£10K each) Is it a good idea to go for two individual separate S&S ISAs.
I plan to keep one S&S ISA for buying the funds for long term and other where I plan to buy selection shares.
Please can someone recomemnd cost effective platforms for buying funds and buying the shares.
I was looking a Hargreaves Lansdown but they charge £8.95 for each trade, looks quite expensive for buying and selling shares through HL but looks cost effective for funds.
Any also suggestions on which funds to buy? (Time Horizon 15 Years)
HSBC FTSE All World Index Class C - Accumulation
Legal & General Global Technology Index Class C - Accumulation
Vanguard FTSE Global All Cap Index Accumulation (GBP)

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows
BP, RDSA,
Lloyds , HSBC, NWG
TSCO, SBRY, MRW
BATS,IMB
UNLR, RB,
GSK, ANZ
HL
LGEN,AV
SMT

As lockdown has been announced, market seem to be a bit negative and US elections in few days,  is it a good time to enter the market or wait till dust settles atleast US Elections are over as Trumo VS Biden have different agenda Trump wins US markets will rise, Biden wins US markets down.

Thanks in advance

@AnotherJoe , @bowlhead9, @Albermarle , @DireEmblem , @steampowered , @Davidmt3 , @Sailtheworld , @MaxiRobriguez , @Alexland , @Eco_Miser

just because some of those shares are near their 52wk low doesn’t mean that they still can’t go lower. What would you do if you bought some and after a month they were 10% lower. 

SMT is near its 52 wk high, not 52wk low.

Steve182

mazibee said:

Dear Experienced Fellows,

Any suggestions for investing £20K.

I plan to open separate S&S ISA, one in my own name and one in my wifes name.(£10K each) Is it a good idea to go for two individual separate S&S ISAs.
I plan to keep one S&S ISA for buying the funds for long term and other where I plan to buy selection shares.
Please can someone recomemnd cost effective platforms for buying funds and buying the shares.
I was looking a Hargreaves Lansdown but they charge £8.95 for each trade, looks quite expensive for buying and selling shares through HL but looks cost effective for funds.
Any also suggestions on which funds to buy? (Time Horizon 15 Years)
HSBC FTSE All World Index Class C - Accumulation
Legal & General Global Technology Index Class C - Accumulation
Vanguard FTSE Global All Cap Index Accumulation (GBP)

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows
BP, RDSA,
Lloyds , HSBC, NWG
TSCO, SBRY, MRW
BATS,IMB
UNLR, RB,
GSK, ANZ
HL
LGEN,AV
SMT

As lockdown has been announced, market seem to be a bit negative and US elections in few days,  is it a good time to enter the market or wait till dust settles atleast US Elections are over as Trumo VS Biden have different agenda Trump wins US markets will rise, Biden wins US markets down.

Thanks in advance

@AnotherJoe , @bowlhead9, @Albermarle , @DireEmblem , @steampowered , @Davidmt3 , @Sailtheworld , @MaxiRobriguez , @Alexland , @Eco_Miser

In your list of possible direct shareholdings, why (with the exception of SMT)  have you not considered any of the remaining 95% of the globe for your potential portfolio? In fact they are almost all from FTSE100 which has provided pretty dismal returns for more than a decade. What makes you think it will perform any better in the next decade?
Personally I would be happy putting at least £10K into SMT.

mazibee

Stargunner said:

mazibee said:

Dear Experienced Fellows,

Any suggestions for investing £20K.

I plan to open separate S&S ISA, one in my own name and one in my wifes name.(£10K each) Is it a good idea to go for two individual separate S&S ISAs.
I plan to keep one S&S ISA for buying the funds for long term and other where I plan to buy selection shares.
Please can someone recomemnd cost effective platforms for buying funds and buying the shares.
I was looking a Hargreaves Lansdown but they charge £8.95 for each trade, looks quite expensive for buying and selling shares through HL but looks cost effective for funds.
Any also suggestions on which funds to buy? (Time Horizon 15 Years)
HSBC FTSE All World Index Class C - Accumulation
Legal & General Global Technology Index Class C - Accumulation
Vanguard FTSE Global All Cap Index Accumulation (GBP)

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows
BP, RDSA,
Lloyds , HSBC, NWG
TSCO, SBRY, MRW
BATS,IMB
UNLR, RB,
GSK, ANZ
HL
LGEN,AV
SMT

As lockdown has been announced, market seem to be a bit negative and US elections in few days,  is it a good time to enter the market or wait till dust settles atleast US Elections are over as Trumo VS Biden have different agenda Trump wins US markets will rise, Biden wins US markets down.

Thanks in advance

@AnotherJoe , @bowlhead9, @Albermarle , @DireEmblem , @steampowered , @Davidmt3 , @Sailtheworld , @MaxiRobriguez , @Alexland , @Eco_Miser

just because some of those shares are near their 52wk low doesn’t mean that they still can’t go lower. What would you do if you bought some and after a month they were 10% lower. 

SMT is near its 52 wk high, not 52wk low.

Thanks for your reply @stargunner and clarification, I have written most of them are at low and SMT was at the end of the list as an exception that I might add it if it goes down. As you have mentioned, if the stocks go down further 10%,  I will hold them.

mazibee

IvanOpinion said:

Maybe consider a good multi-asset fund like Bailie Gifford Managed or Royal London sustainable world?  Both of these have been performing very well.  Maybe put yourself into your selection of funds and your wife into a multi-asset.

Thanks @IvanOpinion for your reply.

I checked the last 5 year performance and it seems amazing. I will surely look into these two, I wa ssearching and found Baillie Gifford Global Discovery Class B - Accumulation , cummaltive return is 204.1%

Any specific reason for their extra ordinary performance of these muti asset funds and any risks associated with them.

mazibee

Steve182 said:

mazibee said:

Dear Experienced Fellows,

Any suggestions for investing £20K.

I plan to open separate S&S ISA, one in my own name and one in my wifes name.(£10K each) Is it a good idea to go for two individual separate S&S ISAs.
I plan to keep one S&S ISA for buying the funds for long term and other where I plan to buy selection shares.
Please can someone recomemnd cost effective platforms for buying funds and buying the shares.
I was looking a Hargreaves Lansdown but they charge £8.95 for each trade, looks quite expensive for buying and selling shares through HL but looks cost effective for funds.
Any also suggestions on which funds to buy? (Time Horizon 15 Years)
HSBC FTSE All World Index Class C - Accumulation
Legal & General Global Technology Index Class C - Accumulation
Vanguard FTSE Global All Cap Index Accumulation (GBP)

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows
BP, RDSA,
Lloyds , HSBC, NWG
TSCO, SBRY, MRW
BATS,IMB
UNLR, RB,
GSK, ANZ
HL
LGEN,AV
SMT

As lockdown has been announced, market seem to be a bit negative and US elections in few days,  is it a good time to enter the market or wait till dust settles atleast US Elections are over as Trumo VS Biden have different agenda Trump wins US markets will rise, Biden wins US markets down.

Thanks in advance

@AnotherJoe , @bowlhead9, @Albermarle , @DireEmblem , @steampowered , @Davidmt3 , @Sailtheworld , @MaxiRobriguez , @Alexland , @Eco_Miser

In your list of possible direct shareholdings, why (with the exception of SMT)  have you not considered any of the remaining 95% of the globe for your potential portfolio? In fact they are almost all from FTSE100 which has provided pretty dismal returns for more than a decade. What makes you think it will perform any better in the next decade?
Personally I would be happy putting at least £10K into SMT.

Thanks @Steve182

My plan was to buy 25% to SMT and allocate balance 75% to 5/6 shares from the list.

You are right that all of them are from FTSE 100 and FTSE 100 has not performed as compared to the global stocks in the last decade and I think the reason is that globally tech stocks are rising and FTSE 100 lacks tech stocks. Heavy weights in FTSE 100 are petroleum, banking, pharma sectors and some old big giants whose performance is not matching the technology stocks globally.

I am learning and now plan to increase the investment in SMT to 40/50%

Another_Saver

Is it a right time?
Always
Is your idea sensible?
Your post indicates you're newish to investing and suggesting using half your money to buy individual shares simply because they're trading at 52 week lows.
Just looking at the price is not investing, Centrica has been trading at 52 week lows for several years now.
The same goes for buying something because "it's been doing well lately".
The recent price performance of a stock or fund is perhaps the worst indicator of its future performance.
As I said in another post lately, looking at charts is about as useful to serious investors as horoscopes.
Personally I'm an avid indexer, but the only shares I have ever held are Tesla (now down to less than £1k) and Berkshire Hathaway.
If I were forced to pick my own stocks, aside from those two, this is my shortlist, this has nothing to do with the current price, these are just businesses I like that I would probably end up buying if index funds weren't around, because of the management, financials, whether or not I can understand the business well enough, and my opinion of the prospects. Looking at the price comes second to looking at the business.
Consumer: U, RB, BATS, IMP, DGE, PZC, BAG, BVIC, BME, PFD, MKS, 
Financials: DL, MONY, EXPN, LSE, 
Industrials: BAE, 
Utilities: NG, UU
Other internationals besides BRK.B and TSLA: IRM.

If you want to try systemically buying what is "low" or cheap, you could use a value ETF like VVAL, or a yield ETF like VHYL (iShares and most fund houses have similar products available).

That said, if the other £10k is just to play with them go ahead.

IvanOpinion

mazibee said:

IvanOpinion said:

Maybe consider a good multi-asset fund like Bailie Gifford Managed or Royal London sustainable world?  Both of these have been performing very well.  Maybe put yourself into your selection of funds and your wife into a multi-asset.

Thanks @IvanOpinion for your reply.

I checked the last 5 year performance and it seems amazing. I will surely look into these two, I wa ssearching and found Baillie Gifford Global Discovery Class B - Accumulation , cummaltive return is 204.1%

Any specific reason for their extra ordinary performance of these muti asset funds and any risks associated with them.

At the minute I Have been meandering towards the BG funds, they have been performing very well.  BG Global Discovery and BG Positive change as well as Scottish Mortgage trust - I think the main reason these have all done well is their high exposure to Technology assets, particularly in America.  The BG Managed one I mentioned is a bit different, due to being a multi asset fund with about 75% equities.
I guess the next question should really be what age group are you in?