Safe place for 2007/08 Stocks & Shares ISA allowance?

Oxford_Guy

Hi - I've fully used my 2007/2008 Cash ISA allowance, but haven't used the £4000 of my Stocks & Shares ISA allowance yet. I don't want to "lose" the latter when the tax year rolls around, but given the volatility of the current equity market (which I'm already quite heavily invested in) and myself with only a medium term investment outlook, what would be a safe place to invest this in? I was thinking of maybe an ETF like iShares £ Index-Linked Gilts (INXG), which would also be an inflation hedge.

Does anyone have any other suggestions?

NB: I'm aware that I could probably get a better return in an online bank account (some are currently offering 6.5% before tax), but the point is I don't want to lose this year's tax wrapper. As long as I can get around 5% or more, I would be happy...

Thanks

Paul

wombat42_2

Oxford_Guy wrote: »

Hi - I've fully used my 2007/2008 Cash ISA allowance, but haven't used the £4000 of my Stocks & Shares ISA allowance yet. I don't want to "lose" the latter when the tax year rolls around, but given the volatility of the current equity market (which I'm already quite heavily invested in) and myself with only a medium term investment outlook, what would be a safe place to invest this in? I was thinking of maybe an ETF like iShares £ Index-Linked Gilts (INXG), which would also be an inflation hedge.

Does anyone have any other suggestions?

NB: I'm aware that I could probably get a better return in an online bank account (some are currently offering 6.5% before tax), but the point is I don't want to lose this year's tax wrapper. As long as I can get around 5% or more, I would be happy...

Thanks

Paul

This
http://www.h-l.co.uk/fund_research/security_details/sedol/B11V7T6.hl

hawkesbaynz

The Black Rock Absolute Fund has made me 3% in the past 2 months utilising it's shorting. Look out for a 5% spread though.

My best fund over recent weeks otherwise has been the Cazenove Multimanager Diversity. Has a mix of the Blackrock Absolute Fund and other Hedge Funds/income funds etc. Has been a good cautious fund.

Talking of Hedge Funds, or which I am naive, are you able to put a lowish investment into a fund such as the Invesco Perpetual Select Trust. Has done well recently and a good diversifier. Charges can be high too, but the return is good (historically though over a short period).
http://www.h-l.co.uk/shares_and_stock_markets/security_details/sedol/B1DQ669.hl

Alternatively a low risk Money Market Fund such as the M&G High Interest Fund. Though HL charge an extra 0.5% on top. Thus the ETF looks good.
http://www.h-l.co.uk/fund_research/security_details/sedol/3111039.hl

Look forward to replies from better informed parties.

sham63

Seftrade might be worth a look if you want to buy ishares.

They do not charge for purchases of ishares and there's no stamp duty to pay either.

There is an annual charge of around £25 for the isa but that's easily made up by saving on dealing costs if you drip feed your buys.

cloud_dog

Why not just open the account and deposit the cash?

Ok, so you won't get top rate interest but you will utilised your allowance without incurring any direct market risk atm.

cloud_dog

Oxford_Guy

cloud_dog wrote: »

Why not just open the account and deposit the cash?

Ok, so you won't get top rate interest but you will utilised your allowance without incurring any direct market risk atm.

Aren't you only allowed to do this for a limited amount of time in a stocks & shares ISA? I could be wrong, though!

cloud_dog

Technically yes but, there aren't any hard and fast rules. You must deposit the money with the 'intention' of investing it. Additionally you don't get a very good interest rate and there is a 20% charge (note not tax) from IR on interest earned.

I've been between 15% and 80% cash during the last 12 months. Also there isn't any real 'cash police' for S&S ISA's :beer:

cloud_dog

Edit: we are talking about a proper S&S ISA account and not a FundNetwork type account, aren't we?

cloud_dog

Also worth reading this thread:

Deutsche Bank sterling overnight interest rate ETF
http://forums.moneysavingexpert.com/showthread.html?t=749573

The jury's out on whether HMIR will allow it in a S&S ISA as there's a 5% rules that needs to be met as one of the rules for it to be ISAble, but if it is then my free cash is definately going there.

(Big thanks to AlexGreen for posting this)

cloud_dog

Oxford_Guy

cloud_dog wrote: »

Technically yes but, there aren't any hard and fast rules. You must deposit the money with the 'intention' of investing it. Additionally you don't get a very good interest rate and there is a 20% charge (note not tax) from IR on interest earned.

I've been between 15% and 80% cash during the last 12 months. Also there isn't any real 'cash police' for S&S ISA's :beer:

cloud_dog

Edit: we are talking about a proper S&S ISA account and not a FundNetwork type account, aren't we?

I think so, I'm currently using Hargreaves Lansdown for most my investments, though have some in an ETF with Selftrade

chris1

cloud_dog wrote: »

Also there isn't any real 'cash police' for S&S ISA's :beer:

Well, maybe just one... (HSBC)

cloud_dog

chris1 wrote: »

Well, maybe just one... (HSBC)

oooooh, do tell........