Stocks & Shares ISA

magd36

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

moneysavinghero

From what i can see Nationwide only offer you the choice of 4 funds (provided by Aegon). With HL you would get access to a much larger (pretty much full market) selection of funds from a variety of providers.

moneysavinghero

Nationwide charge you 0.25%pa + Aegon annual charge 0.31%pa. So total 0.56%pa. (funds will charge you extra on top of this)
HL would charge you 0.45%pa (again funds will charge you extra on top of this).

So you would probably be better off going with Hargreaves Lansdown. They are cheaper and you would have access to a much greater choice of funds. If the choice is overwhelming i am sure some of the experts on here could give you some pointers as to which are the best to choose.

El_Torro

If you're happy with the choice provided by Nationwide (4 funds) the charges (both platform and fund charges) are 0.86% or 0.87%. If you look elsewhere you could get more competitive charges. For example if you go with Vanguard and choose one of their VLS funds you would pay 0.37% in charges. Vanguard's selection isn't great either though, you can only invest in Vanguard funds. 

Most people on this forum prefer the wider choice from places like HL and AJ Bell. Not everyone needs such a wide range of choices though.

barnstar2077

How long can you leave the money in there for? 

dunstonh

magd36 said:

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

HL is a whole of market platform. One of many.   Whole of market platforms offer investments from the whole of market distribution.   Nationwide don't have a platform.   They have internal software offering internal funds and its a relatively new offering.   Its a different process aimed at different parts of the marketplace.

The financial services retail market is a bit like any other retail market.     You have shops that sell basic and own brand options and you have shops that are specialised and sell a much greater range.

magd36

barnstar2077 said:

How long can you leave the money in there for? 

My plan would be to hopefully have the investment for 5 to 10 years.

magd36

dunstonh said:

magd36 said:

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

HL is a whole of market platform. One of many.   Whole of market platforms offer investments from the whole of market distribution.   Nationwide don't have a platform.   They have internal software offering internal funds and its a relatively new offering.   Its a different process aimed at different parts of the marketplace.

The financial services retail market is a bit like any other retail market.     You have shops that sell basic and own brand options and you have shops that are specialised and sell a much greater range.

My plan would be to open with a minimum amount and pay a regular monthly payment in.  I presume there would be no fees on making the monthly payment?

eskbanker

magd36 said:

dunstonh said:

magd36 said:

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

HL is a whole of market platform. One of many.   Whole of market platforms offer investments from the whole of market distribution.   Nationwide don't have a platform.   They have internal software offering internal funds and its a relatively new offering.   Its a different process aimed at different parts of the marketplace.

The financial services retail market is a bit like any other retail market.     You have shops that sell basic and own brand options and you have shops that are specialised and sell a much greater range.

My plan would be to open with a minimum amount and pay a regular monthly payment in.  I presume there would be no fees on making the monthly payment?

Platforms won't charge for paying in as such, but may have dealing charges for the actual purchase of investments thereafter, and will also usually impose custody charges as outlined earlier.

Albermarle

magd36 said:

dunstonh said:

magd36 said:

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

HL is a whole of market platform. One of many.   Whole of market platforms offer investments from the whole of market distribution.   Nationwide don't have a platform.   They have internal software offering internal funds and its a relatively new offering.   Its a different process aimed at different parts of the marketplace.

The financial services retail market is a bit like any other retail market.     You have shops that sell basic and own brand options and you have shops that are specialised and sell a much greater range.

My plan would be to open with a minimum amount and pay a regular monthly payment in.  I presume there would be no fees on making the monthly payment?

Every investment platform has a different charging structure .
Typically a simple consumer friendly brand name platform like Nationwide , will not charge for regular investments , but their overall charge is on the high side . 
A platform with low overall charge may well charge for each monthly investment.
The investment horizon should ideally be more than 5 years , ideally at least 10. If you invest each month rather than all at once some of the money may only be invested for a short period. 

Eco_Miser

magd36 said:

Thinking of starting a stocks and shares ISA. If I look at Nationwide the funds look like they have only existed for a couple of years yet if you look at the funds with someone like Hargreaves Lansdown the go back to 2016 and before. Is there any reason for this? TIA.

Nationwide recently changed their provider, so the funds offered may indeed only go back a few years.

As said, each provider has its own charging structure, some are appropriate for small regular amounts, some for large buy and hold, some for funds, some for shares, and some are just expensive.

Here's a list: https://monevator.com/compare-uk-cheapest-online-brokers/

You might like to browse around that site for lots of investing hints, tips and discussions (not advice, because that's legally regulated).