Fees too high - investment ISA

[Deleted User]

I have looked at various options for an investment ISA but the fees have sent me running back to my cash ISA currently giving .3%(abismal). 

Local ifa wanted 3% of initial investment set up plus annual charges . Lloyds/ Shroders want 1.75% plus .65% annual fund fee . 

Where can I get a low risk fund with reasonable fees, please don’t suggest DIY as much as I would love to, I don’t feel confident, and can’t get my head round the info provided online. 

 I have considered Hargreaves lands down,  Arriva and hsbc. 

eskbanker

Sounds like it's the advisor fees that you're unhappy with, rather than the actual ISA/platform/fund charges?

If you're looking for someone to manage your investments for you then that will inevitably cost more than DIY, so you just need to shop around until you find someone whose charges align with your expectations....

https://www.moneysavingexpert.com/savings/best-financial-advisers/

What's the size of pot you're talking about, as this may influence your options and the fee percentage?

milton1970

Look at *AJ Bell they have pre-defined isa portfolios that can be invested in .. don’t need IFA advising

*other providers offer similar

[Deleted User]

It is the advisor fees that I don’t like, I read that the fees taken off your investment makes all the difference, I’m not so bothered about platform fees, around 30k

[Deleted User]

Do fees get cheaper if you have less to invest? Percentage wise 

jimjames

Maybe one like Nutmeg if you don't want to pay advisor fees? You'll pay more than a straight DIY option but it should guide you through the process.

eskbanker

Deleted_User said:

Do fees get cheaper if you have less to invest? Percentage wise 

No, the opposite, percentages will be lower with more to invest, and £30K is at the very low end of what advisers would typically manage, so that will influence their willingness to take that on, and the percentage will be quoted accordingly....

ColdIron

Deleted_User said:

It is the advisor fees that I don’t like, I read that the fees taken off your investment makes all the difference, I’m not so bothered about platform fees, around 30k

For small amounts like this most IFAs won't be interested. Those few that are won't build a bespoke portfolio for you and likely just put you in a multi asset fund. You can do this yourself

This is as good as any at your level

https://monevator.com/vanguard-lifestrategy

Aminatidi

ColdIron said:

Deleted_User said:

It is the advisor fees that I don’t like, I read that the fees taken off your investment makes all the difference, I’m not so bothered about platform fees, around 30k

For small amounts like this most IFAs won't be interested. Those few that are won't build a bespoke portfolio for you and likely just put you in a multi asset fund. You can do this yourself

This is as good as any at your level

https://monevator.com/vanguard-lifestrategy

That was pretty much what I was going to suggest.

I do take the point about confidence but perhaps open an account and start with a small amount?

You're really not going to be too far off with LifeStrategy so long as you get your appetite for risk right.

dunstonh

It is the advisor fees that I don’t like, I read that the fees taken off your investment makes all the difference, I’m not so bothered about platform fees, around 30k

You should be bothered about the platform fees.   HL is 0.45% but an IFA platform on £30k can be around 0.25%.   Your value doesn't justify ongoing servicing with an IFA.  So, a transactional case via an IFA could cost around 0.45% pa.   The initial fee covers the cost of setting it up.

The problem is that £30k is very low for an IFA to be involved.  Many have minimum levels much higher than that. Some as high as £250k.  Larger investors get better terms than smaller investors.

Where can I get a low risk fund with reasonable fees, please don’t suggest DIY as much as I would love to, I don’t feel confident, and can’t get my head round the info provided online. 

So, you don't want DIY and you don't want to pay an adviser.  So, that eliminates the main distribution methods.

It is the advisor fees that I don’t like, I read that the fees taken off your investment makes all the difference,

A transactional advice case would actually probably end up costing you less over a decade than a pre-made portfolio from a major DIY provider.

Do fees get cheaper if you have less to invest? Percentage wise 

No.  Fund charges are the same regardless of the amount.   Platform charges and adviser charges get less, the more you have.  

A robo-provider probably fits the bill here. Although in the long term it will likely be more expensive than a transactional IFA or a DIY option.

[Deleted User]

Thanks for all your ideas I’m gona go through the options suggested over the weekend