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Investment ISa with medium risk but long term

Can anyone advise which S&S ISA would be best long term investment? I have £20k ( and yes other savings for rainy days). I am a novice so can’t manage it on my own but want to get something with reasonable fees too.
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Comments

  • El_Torro
    El_Torro Posts: 1,973 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It depends what you mean by best. If you're investing for 10 years or more (considered long term in investing) then a global tracker (100% equities) will probably give you the best return while still being suitably diversified. It will be a volatile ride though, lots of ups and downs. 

    Your thread title states medium risk. Medium risk means different things to different people. However using this criteria I would say a multi asset fund with 60% equities would be suitable. It won't give you as good a return as a global tracker but the ride will be a lot less bumpy. 
  • dunstonh
    dunstonh Posts: 120,136 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Can anyone advise which S&S ISA would be best long term investment?
    An ISA is just a container for investments.  It doesn't grow.  Its what you hold in the ISA that matters and most modern investment platforms are whole of market which gives you 30,000 or so different investment options.

    So, the provider is less of an issue.  It is where and how you want to invest that you should be selecting first.  Then you select the provider/platform afterwards.



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • salviaS
    salviaS Posts: 4 Newbie
    First Post
    I was considering Vanguard as heard a lot of good comments about it. I have some funds with Wealthify as well. 
  • dunstonh
    dunstonh Posts: 120,136 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    salviaS said:
    I was considering Vanguard as heard a lot of good comments about it. I have some funds with Wealthify as well. 
    Vanguard funds or Vanguard as a ISA provider?

    It is a quirk that whole of market platforms offer more Vanguard funds than Vanguard offer on their own brand platform.   And that some whole of market platforms using Vanguard funds are lower cost than using the Vanguard platform.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Albermarle
    Albermarle Posts: 28,843 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    salviaS said:
    I was considering Vanguard as heard a lot of good comments about it. I have some funds with Wealthify as well. 
    As said the actual provider of the S&S ISA is not that important, it is the investment(s) you hold in the ISA that matter.

    For example if I hold Investment Fund A in a Vanguard S&S ISA
    and I also hold Investment fund A in a different S&S ISA, they will both perform exactly the same.

    If I change to  Investment fund B, in a Vanguard S&S ISA , it will perform differently to Investment fund A even though it is the same S&S ISA.

    So first you need to learn a bit more about investing and which funds to pick. 
  • Eyeful
    Eyeful Posts: 1,060 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    edited 9 October at 2:59PM
    a. What makes you think you can not manage investments on your own?
    You can make investing as simple or as complicated. as you like.

    b. It is in the interests of the investment industry to make it complicated, so they can then charge you high fees and make you think you could not do it yourself.  

    1. Any money needed within 5 years should be in a Bank/Building Society account covered by the FSCS up to £85K.

    2. Use tax shelters where possible  (a) Pensions (b) ISA's

    3. INVESTING means putting your money at risk.
    You hope to get more out than you put in, but this this not guaranteed

    4. Think of investing in the stock markets as a game.
        Long term (say at least 10 years) its called "investing" odds of winning = HIGH.
        Short term (say few days/weeks) its called "speculating" or "trading" odds of winning = small

    5. You can make investing as simple or as complicated as you like.

       The Simple method of investing boils down to this:

    (a) Low Cost Multi Asset Funds (for Cautious types & those that want more Control)
         A ready made portfolio, where you pick the share/bond split, you are most comfortable with.

    (b) Passive Low Cost Global Index Tracking Fund or ETF (for the Adventurous with a very long time frame) 
         Here its shares = 100%. It may produce the highest return but is the most risky.

    6.  Academic research repeatedly shows that most "active fund managers" after charges are applied,
        do not beat a MAJOR  GLOBAL WORLD INDEX. 

    7. Before investing:
    (a) Clear all expensive debt first (except for mortgage)
    (b) Have a "Rainy Day" account for emergencies (6 months of house hold bills, is often quoted).

     8. SIMPLE INVESTING IN DETAIL (advantages, easy to understand  & implement).
    (a) First watch this: https://www.kroijer.com/
    (b) Then read these
         https://monevator.com/best-global-tracker-funds/

    9. If you want more information, try these YouTube channels:
    James Shack
    Meaningful Money
    Rebel Finance School

  • salviaS
    salviaS Posts: 4 Newbie
    First Post
    salviaS said:
    I was considering Vanguard as heard a lot of good comments about it. I have some funds with Wealthify as well. 
    As said the actual provider of the S&S ISA is not that important, it is the investment(s) you hold in the ISA that matter.

    For example if I hold Investment Fund A in a Vanguard S&S ISA
    and I also hold Investment fund A in a different S&S ISA, they will both perform exactly the same.

    If I change to  Investment fund B, in a Vanguard S&S ISA , it will perform differently to Investment fund A even though it is the same S&S ISA.

    So first you need to learn a bit more about investing and which funds to pick. 

    That helps a lot, thank you. When you say I should learn more about which funds to pick -would you recommend starting with something like a global equity tracker or a 60/40 multi-asset fund for a medium-risk, long-term approach?


  • eskbanker
    eskbanker Posts: 37,937 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    salviaS said:
    When you say I should learn more about which funds to pick -would you recommend starting with something like a global equity tracker or a 60/40 multi-asset fund for a medium-risk, long-term approach?
    The first reply in the thread emphasised the difference between the higher risk/volatility of 100% equities and the ability to dial that risk down with multi-asset funds, so it'll all come down to your tolerance for risk - what does 'medium risk' actually mean to you?
  • Albermarle
    Albermarle Posts: 28,843 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    salviaS said:
    salviaS said:
    I was considering Vanguard as heard a lot of good comments about it. I have some funds with Wealthify as well. 
    As said the actual provider of the S&S ISA is not that important, it is the investment(s) you hold in the ISA that matter.

    For example if I hold Investment Fund A in a Vanguard S&S ISA
    and I also hold Investment fund A in a different S&S ISA, they will both perform exactly the same.

    If I change to  Investment fund B, in a Vanguard S&S ISA , it will perform differently to Investment fund A even though it is the same S&S ISA.

    So first you need to learn a bit more about investing and which funds to pick. 

    That helps a lot, thank you. When you say I should learn more about which funds to pick -would you recommend starting with something like a global equity tracker or a 60/40 multi-asset fund for a medium-risk, long-term approach?


    As said it is down to your personality, and partly about what 'long term' really means.

    In the long term ( > 10 years) a global equity tracker has historically produced a good average return. I think 9% pa is a figure often mentioned- so better than savings rates and higher than normal inflation.
    However with that comes the certainty that every few years ( and maybe more often)  the value will drop at a scary rate. Headlines will be screaming ' Crash' ' Financial Armageddon' ' wipeout' etc. At this point you have to hold your nerve and not sell up, as at some point the losses will recover. If you think you might panic seeing your money disappearing rapidly, then best to avoid this type of investment.
    A 60/40 fund will not grow as much in the long term but the dips will be less dramatic. It is also more suited if the time scale of when you might need the money is a bit shorter, 8 years for example. 
  • salviaS
    salviaS Posts: 4 Newbie
    First Post
    Medium risk (in my comprehension) might fluctuate in value but still has a fair chance of giving good returns 


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