Mini Equity ISA

Legacy_user

I am interested in opening a Mini Equity ISA (of £3000)

With Mini Cash ISAs, you can compare your investment by comparing interest rates....the higher the interest, the better the ISA. But how can you tell with Maxi ISAs?

Who would you recommend as a good Maxi ISA provider?

dunstonh

You cannot use past performance as a guide to future performance.  The lower the risk, the lower the potential for gain but also the lower the potential for loss.  The higher the risk, the greater potential for loss and gain.

Most important is picking a fund that is correct for your attitude to risk.  Or more important, as it is nowadays, is not to pick a single fund but build a portfolio of funds within the ISA that matches your overall attitude to risk.

Many in here will say use tracker ISAs as they tend to have the lowest charges.   They do tend to outperform managed funds when the going is good but do worse when the going is bad.  A UK tracker fund would generally be higher risk than a UK managed fund though so really they shouldnt be compared that way.  Its often a failing of the media, particulary when the markets were high, when they were comparing high risk technology fund performance against low risk corporate bond funds saying how much better tech funds were.   I bet everyone who remained invested in tech funds wished they had gone with the corp bonds now.  

However, that brings in the next thing to consider.  Timescale.  The longer you intend to invest for, the higher risk funds become a bit less risky.  In general, you wouldnt want to go too risky if investing for 5 years but if its more like 15 years, you could consider it.

Use a fund supermarket rather than a single provider.  This allows easy switches in future.

Also, get your MAXI and MINIs right as you cant change your mind once its done (you mention both in your post).

No-one will recommend a particular fund as that would be in breach of the FSA guidelines however further guidence and discussion is fine.