S&S ISA Help 10 February at 2:21PM in ISAs & tax-free savings 4 replies 177 views

akira181

Hello all

18 months ago I was here asking about how to get into investing in a S&S ISA but was recommended to build up some savings to fall back on before committing to locking money away, which sounded sensible. So I've been putting money away in premium bonds since then and it's looking healthy enough that I think I can start locking £200-300 a month (with maybe an annual lump sum) for the next 20 years or so without putting myself in a tight situation for the short to medium term if I were to lose my job tomorrow for example.

My thinking is to start with one or two mutual/index funds (EFTs if I cannot afford the initial buy in) and take it from there as I learn more. I'm still reading up on how it all works but my goal is to be mainly passive. I might occasionally pick my own stock or two but that would be more for fun than serious investing. Because of that, I think a S&S ISA on a platform like Trading212 would be better suited than a simple robo-investing option like Nutmeg.

Does this sound correct? Anything I should read up on before starting or something I need to consider that I possibly haven't?

Albermarle

(EFTs if I cannot afford the initial buy in)

Not sure what you mean by this statement?

This article may be useful

How to invest in a stocks and shares Isa: The quick and easy guide | This is Money

masonic

akira181 said:

My thinking is to start with one or two mutual/index funds (EFTs if I cannot afford the initial buy in) and take it from there as I learn more. I'm still reading up on how it all works but my goal is to be mainly passive. I might occasionally pick my own stock or two but that would be more for fun than serious investing. Because of that, I think a S&S ISA on a platform like Trading212 would be better suited than a simple robo-investing option like Nutmeg.

Does this sound correct? Anything I should read up on before starting or something I need to consider that I possibly haven't?

Trading212 does not offer mutual funds, only shares ETFs and investment trusts (exchange traded investments). The minimum buy in for an ETF is 1 share. There are many ETFs whose share price is well below £200-300, the three cheapest global developed market ETFs have a share price under £25. Trading212 also allows fractional share ownership, so the amount you have to invest should not be limiting.

Whereas Nutmeg requires a minimum opening balance of £500 to hold one of its portfolios, and this would be a more costlier approach for someone who would otherwise be willing to select some investments of their own choice.

akira181

Albermarle said:

(EFTs if I cannot afford the initial buy in)

Not sure what you mean by this statement?

This article may be useful

How to invest in a stocks and shares Isa: The quick and easy guide | This is Money

I read that mutual funds have a minimum buy in but I mistook one as an EFT earlier (see below)

masonic said:

akira181 said:

My thinking is to start with one or two mutual/index funds (EFTs if I cannot afford the initial buy in) and take it from there as I learn more. I'm still reading up on how it all works but my goal is to be mainly passive. I might occasionally pick my own stock or two but that would be more for fun than serious investing. Because of that, I think a S&S ISA on a platform like Trading212 would be better suited than a simple robo-investing option like Nutmeg.

Does this sound correct? Anything I should read up on before starting or something I need to consider that I possibly haven't?

Trading212 does not offer mutual funds, only shares ETFs and investment trusts (exchange traded investments). The minimum buy in for an ETF is 1 share. There are many ETFs whose share price is well below £200-300, the three cheapest global developed market ETFs have a share price under £25. Trading212 also allows fractional share ownership, so the amount you have to invest should not be limiting.

Whereas Nutmeg requires a minimum opening balance of £500 to hold one of its portfolios, and this would be a more costlier approach for someone who would otherwise be willing to select some investments of their own choice.

I saw vanguard S&P 500 on Trading212 and mistook it for the vanguard 500 index fund. I'll get an account and have a play around on the demo account before committing to it.

Albermarle

Most investment platforms/ S&S ISA's have a minimum investment of £25 and often this has to be a regular investment.
However they all have there own rules/quirks.