Stock & Share ISA, What to do with cash balance.

tricky145

Hi All,

Have a S&S ISA with substantial cash holding at present,  i intend to drip feed into the market over the next 6 -12 months to smooth out risk.

Do I leave it in cash and get no interest or is there a bond fund i could throw it in to get some interest at low risk.  A friend was explaining about a  £-UK-denominated ETF,  I started looking at GLTP but not sure if thats what they meant..

Pros & cons please about this advice and if ETF is better than another type of fund,

Hope this makes sence and in in wright area. Thanks in advance.

El_Torro

The best thing to do is probably to invest it all now. If you're investing for the long term (you should be) it won't make a big difference to your overall returns if you invest it all now or drip feed it. 

If you do want to drip feed then I would suggest a money market fund rather than a bond fund. 

masonic

CSH2 is an ETF option that might be worth a look, but a fund may be better if you are using a platform that allows free/cheaper dealing on funds.

Tonski

I had the same thoughts about drip feeding when i had a lump sum but, in the end, I invested it all now based on this article from Vanguard. Seems like the lump sun approach works out best ~2/3rds of the time according to their research.

The truth about ‘pound cost averaging’ (vanguardinvestor.co.uk)

Doctor_Who

tricky145 said:

Hi All,

Have a S&S ISA with substantial cash holding at present,  i intend to drip feed into the market over the next 6 -12 months to smooth out risk.

Do I leave it in cash and get no interest or is there a bond fund i could throw it in to get some interest at low risk.  A friend was explaining about a  £-UK-denominated ETF,  I started looking at GLTP but not sure if thats what they meant..

Pros & cons please about this advice and if ETF is better than another type of fund,

Hope this makes sence and in in wright area. Thanks in advance.

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Beddie

Doctor_Who said:

tricky145 said:

Hi All,

Have a S&S ISA with substantial cash holding at present,  i intend to drip feed into the market over the next 6 -12 months to smooth out risk.

Do I leave it in cash and get no interest or is there a bond fund i could throw it in to get some interest at low risk.  A friend was explaining about a  £-UK-denominated ETF,  I started looking at GLTP but not sure if thats what they meant..

Pros & cons please about this advice and if ETF is better than another type of fund,

Hope this makes sence and in in wright area. Thanks in advance.

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Me too! Here's the fund for the OP to have a look:

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

Slinky

Beddie said:

Doctor_Who said:

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Me too! Here's the fund for the OP to have a look:

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

Can this sort of thing be held in an idealing.com isa?

Doctor_Who

Slinky said:

Beddie said:

Doctor_Who said:

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Me too! Here's the fund for the OP to have a look:

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

Can this sort of thing be held in an idealing.com isa?

Not sure about the Royal London fund, but it seems you can hold ETFs, so CSH2 might be an option.

Albermarle

Slinky said:

Beddie said:

Doctor_Who said:

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Me too! Here's the fund for the OP to have a look:

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

Can this sort of thing be held in an idealing.com isa?

Idealing is a new one on me and had to look it up.
Seems more for sophisticated investors, traders etc so just wondering what made you pick them over the usual ones regularly mentioned on here?

Slinky

Albermarle said:

Slinky said:

Beddie said:

Doctor_Who said:

I use a short term money market fund (Royal London) for a cash-like investment in my SIPP. This tracks SONIA and so pays ~5.25% before fees. This is for money I plan to withdraw over the next 2-3 years, but you could use one to hold cash whilst you decide what to do.

Me too! Here's the fund for the OP to have a look:

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

Can this sort of thing be held in an idealing.com isa?

Idealing is a new one on me and had to look it up.
Seems more for sophisticated investors, traders etc so just wondering what made you pick them over the usual ones regularly mentioned on here?

I've had it for more than 20 years, can't remember the reasons for picking them as opposed to whatever other choices there were then. I've got a load of cash earning buttons in it, was thinking the quoted investment looked more useful.

tricky145

Hi All,

Thanks for all your comments and feedback, its made me stop and rethink - bit of research this weekend on where to invest it.

I really need to learn the difference between a Money Market and Bond Fund,   Doh.

I see iDealing has come up in the thread.  I have a ISA with them and like Slinky have held it for some time, I was attracted to it as a low-cost platform with reasonable dealing fees. They didn't charge a % fee of your holding so as your funds/ shares grew in value you were not hit with higher management charges.

They have just changed their charging structure, still no platform fee but introduced a 0.20p per month charge per individual holding and reduced dealing charger to £5.00 from £10.00. Dont recall a setup charge or any fees to deposit funds but they have normal foreign exchange charges etc.  Overall I would recommend them.

Once again thanks again to all who contributed.

Tricky