Seeking Advice - High-Risk Stocks & Shares ISA and Diversification

g000444555

Hi everyone,

I'm hoping to get some advice on my Stocks & Shares ISA strategy. I currently have an ISA with a major bank and £80,000 invested in their "riskiest" ready-made option. With the new tax year approaching on April 5th, I'll be able to add another £20,000 to my ISA allowance.

Here's my dilemma:

• Stick with the current provider or diversify? Right now, I like the convenience of having everything in one place with no extra fees and a dedicated advisor I trust. However, I'm aware that relying on a single provider might not be the wisest move in terms of risk.
• Finding the "riskiest" ready-made ISA with minimal management. If I choose to diversify, which provider would you recommend for a high-risk, ready-made investment option that requires minimal effort on my part?

Any insights on these points would be greatly appreciated!

Additional Information:

• My risk tolerance is high, and I'm comfortable with the current level of risk.
• I'm familiar with the platform and comfortable managing my investments within it.

Thanks in advance for your help!

P.S. I understand that the forum doesn't allow specific financial advice, but any general recommendations or considerations you can share would be fantastic.

ColdIron

You might want to reformat your post. It's very difficult to read without line wrapping

gravel_2

Do you have an understanding of what your "risky" ready-made investment is comprised of? Would it be roughly equivalent to an S&P, Global, or World index ETF on a low cost platform?

What are your annual fees with the bank for using their platform?

EthicsGradient

What attracts you to "ready-made" ISAs? There are many ways to go for something "high risk" and easy to manage with the chance of high reward - eg investing in a single share, like NVIDIA.

In what way is your current "advisor" "dedicated" to you? That doesn't sound like a "ready-made" set-up.

g000444555

1. The "riskiest" ready-made investment is comprised of 2% Cash and Short-Term Bonds, 9% Bonds (Excluding Short-Term Bonds) and 89% Shares. I am unaware of how it compares to an S&P, Global, or World index ETF on a low cost platform

2. The annual customer fee on my account is 0.25%

EthicsGradient

It would be slightly more volatile if you invested it all in shares, without any cash or bonds. If you want something with the probability of slightly more gain over the long term, an all-world (including emerging markets) tracker would do that. To be riskier than that, you need to start picking regions or countries, or sectors like technology (unless that "89% shares" already has significant regional or sector biases).

 All-world trackers have charges lower than 0.25%, and you can often do a little better still by dividing them up into "developed" and "emerging" by the current proportion that those make up an all-world index - but that requires a little management on your part.

dunstonh

Stick with the current provider or diversify?

Bank investment products (especially on the robo side) tend to be basic and expensive for what they are.   So, its likely that alternatives exist that will be better.

• Finding the "riskiest" ready-made ISA with minimal management. If I choose to diversify, which provider would you recommend for a high-risk, ready-made investment option that requires minimal effort on my part?

Robos are great for small investors but they are not the most cost effective way to invest. 

Right now, I like the convenience of having everything in one place with no extra fees and a dedicated advisor I trust.

If you are using a robo-portfolio and a bank then in most cases, you are not going to have a full adviser.   And to be honest, if you want an adviser then using an IFA is going to be better most of the time.     The fact your adviser is not advising you suggests the service they are giving is not an advice one.  After all, this is the reason you pay them for advice.  Paying them and then asking the internet seems a bit silly.

g000444555

EthicsGradient said:

What attracts you to "ready-made" ISAs? There are many ways to go for something "high risk" and easy to manage with the chance of high reward - eg investing in a single share, like NVIDIA.

In what way is your current "advisor" "dedicated" to you? That doesn't sound like a "ready-made" set-up.

1. What attracts me to ready-made ISAs is the combination of low management overhead and a relatively low fee (0.25%). While it's not an index fund, the idea of diversification across multiple holdings aligns with their approach. Index funds often outperform individual stocks in the long run, which is appealing for a hands-off investment strategy.
2. I have a dedicated relationship manager at the bank where I do my general banking. It's important to remember that their service is separate from the Stocks & Shares ISA itself. They've been incredibly helpful in saving me time, especially when I was setting up the investment account and learning about the different options available. However, it's worth noting that relationship managers can't provide financial advice – they can only explain the available options and help you navigate the account setup process.

dunstonh

1. What attracts me to ready-made ISAs is the combination of low management overhead and a relatively low fee (0.25%).

Charges are normally shown as a platform charge/provider charge and fund charge.

2. I have a dedicated relationship manager at the bank where I do my general banking. I

So, not an adviser.

They've been incredibly helpful in saving me time, especially when I was setting up the investment account and learning about the different options available. 

Which they are paid to do and the reason banks like this method is that they have no liability as its you that chooses.    They just prod and poke you in the a direction.

jimjames

g000444555 said:

1. The "riskiest" ready-made investment is comprised of 2% Cash and Short-Term Bonds, 9% Bonds (Excluding Short-Term Bonds) and 89% Shares. I am unaware of how it compares to an S&P, Global, or World index ETF on a low cost platform

2. The annual customer fee on my account is 0.25%

That's the platform fee, you'll also be paying fund charges which could be high too with a bank. As a comparison a S&P index tracker with a low cost platform could cost as low as 0.06% in total (or 0.21% with a platform like Vanguard with % platform fee)

Eyeful

Your post reads as if you are new to investing. I do not think you have an advisor as such.
I suggest that you watch these videos first, (should be of help to you). Then decide on what you want to invest in. 

 https://www.kroijer.com/