Maths: Compund Interest S&S ISA: 100% in 1 or 50% each in 2?

jommo232

Hi,

Calling maths whizzes!

I want to autoinvest in two funds using stocks and shares ISAs. I would prefer not to put all my eggs in one basket and use two different ISA providers. However, I'm unsure of how this will affect the compunding interest. Would I get the same compunding if I autoinvest two funds in one S&S ISA as I would autoinvesting one fund in each of two different S&S ISAs? Thanks!

Dazed_and_C0nfused

jommo232 said:

Hi,

Calling maths whizzes!

I want to autoinvest in two funds using stocks and shares ISAs. I would prefer not to put all my eggs in one basket and use two different ISA providers. However, I'm unsure of how this will affect the compunding interest. Would I get the same compunding if I autoinvest two funds in one S&S ISA as I would autoinvesting one fund in each of two different S&S ISAs? Thanks!

There won't be any interest to compound if you investing the money.

InvesterJones

Assuming returns/fund growth is what you're comparing. Yes, it's the same whether you invest X in one fund or X/2 in two funds, if they have the same rate of return.

Newbie_John

What funds are we talking about?

Are you asking if investing in let's say £20k in "vanguard all UK shares" with one provider is the same as £10k in that same fund with two different ISA providers?

More or less the same - there will be some difference related to possibly different portal fees.

Eco_Miser

Dazed_and_C0nfused said:

jommo232 said:

Hi,

Calling maths whizzes!

I want to autoinvest in two funds using stocks and shares ISAs. I would prefer not to put all my eggs in one basket and use two different ISA providers. However, I'm unsure of how this will affect the compunding interest. Would I get the same compunding if I autoinvest two funds in one S&S ISA as I would autoinvesting one fund in each of two different S&S ISAs? Thanks!

There won't be any interest to compound if you investing the money.

There will be if the investment is in bond funds.

rectoryoasis

Whats everyone investing in atm? 

dunstonh

 I would prefer not to put all my eggs in one basket and use two different ISA providers. 

Use two different fund houses in the same ISA then.   No need for you to make it more complicated than it needs to be.

However, I'm unsure of how this will affect the compunding interest.

There is no interest unless you are 100% investing in fixed interest securities or money market funds.

Whats everyone investing in atm? 

There around 30,000+ investment options on a whole of market platform.   So, that will be what everyone is investing from.

SVaz

The only thing that will affect the growth, is the platform and fund charges.
Some platforms offer lower charges for larger balances so by keeping everything together,  you would eventually pay less. 

george4064

rectoryoasis said:

Whats everyone investing in atm? 

Everyone is probably investing in what’s right for them and their circumstances. Whilst that may be interesting to hear, isn’t necessarily right for you and your circumstances.

GazzaBloom

First time poster and no replies. We see a lot of threads started like this.

below bridge dwellers I reckon