stocks and shares ISA - fund choices

medias

I'm looking for suggestions on funds to invest in long term say 10+ years. I'm using the Cavendish online (Fidelity) platform and the plan is to invest £300 this week, then £100 each month from December. Someone who knows a bit about the topic suggested to me that I could start with these funds below, but I would like to add a couple more if possible. As I'm learning about the topic - any suggestions are highly appreciated - on both these funds and a couple of new ones. I'm not entirely risk adverse, but cannot say I'm a high risk taker either. Thank you. 

Vanguard Global Bond Index Fund GBP Hedged Acc
HSBC FTSE All World Index Class C Accumulation

AlanP_2

Option 2 is a multi-asset fund so holds equities (at 80%) and bonds (at 20%) and designed as an "all in 1" package.

Option 3 is 100% global equities whilst Option 1 is 100 global bonds.

Most people wouldn't mix 2 with 1 or 3 unless they had a specific reason for changing the allocation that Vanguard have set for VLS80. For example if you wanted more bonds you would use VLS60 rather than add a Bond Index Fund to get to VLS80 with 60% equities and 40% bonds.

Given you are starting out on the investment journey I would suggest an "all in 1" package is the easiest and most suitable option.

The monevator website is a good resource to find out more about investing, and there is a comparsion on there of the VLS range against competitor offerings in that space e.g. HSBC Global Strategy / L&G Multi-Index.

Are you investing in an ISA or a pension? Why have you made the choice you have? How does it all fit together in your overall financial situation /broad objectives?

AlanP_2

How do they compare / complement what your pension is invested in?

Increasing pension contributions will attract extra tax relief so could be a better option for retirment funds than an ISA. Will be evemn better if your employer scheme uses Salary Sacrifice.

How old are you - Is a S&S LISA with 25% boost on max £4k pa an option (have to be under 40).

Albermarle

The Aviva mixed investment funds are similar to the Vanguard Life strategy funds - a mix of equity and bonds mainly .
The first Aviva fund is probably similar to VLS 40 and the second one to VLS60 - so lower risk than the VLS 80 you mention for your ISA. It could be a good exercise to compare the investment performance over the last few years of them all. 
So in fact you have things the wrong way around . As the pension is long term - minimum 10 years , probably a lot longer , you can invest longer term , which means you can take some more risk.
As you intend to cash in the ISA in 5 years ( which is short term by investment standards) you should be in lower risk investments.

Another_Saver

medias said:

Thanks. I don't intend at all to cash in the S&S ISA in 5 years... if all goes well, the plan is for much longer term than that (say 10-25 years). But, I would like to have the option if absolutely needed. 

This is my overall Aviva pension portfolio split: 

33% Global equity

29% Bonds

19% UK equities

11% Cash or Equivalents

3% Property

5% Other

52% stocks and 40% fixed income seems a *very* conservative asset allocation for a 45 year old's Pension.