Equity ISA's

cadboll

Hi!

I have put money (£3000) into a mini-cash ISA - Yorkshire BS. From reading around I've found that its also possible to put a max of £4000 into an equity ISA. Is this recommended and if so how does it work?

Thanks.

YorkshireBoy

cadboll wrote:

Hi!

I have put money (£3000) into a mini-cash ISA - Yorkshire BS. From reading around I've found that its also possible to put a max of £4000 into an equity ISA. Is this recommended and if so how does it work?

Thanks.

I'm considering this as well but, although I've read a little into it, I'm not really confident enough to answer your questions other then to say...

1. Nobody on here can say whether it's "recommended" as you'll have to see an IFA for this I believe - so they can assess your attitude to risk.

2. I've visited http://www.landg.co.uk/investments/isas/guide-to-isas.html and researched equity ISA's there. You can look at past performance (don't forget we've had 2 good years of UK stockmarket performance) on various funds and trackers, and check out fees etc.

Somebody far more knowledgable will be along shortly.

HTH
YB

dunstonh

You dont need to see an IFA (or anyone else). However, if you do not feel confident in doing it yourself then an IFA does make sense.

Recommended depends on the individual. You can invest into a range of things with an equity ISA. Some things will be very low risk, some very high risk and then a whole load of areas in between. Personally, I dont do the cash ISA but maximise the equity ISA. That works for me but it is an individual choice.

In reponse to above on funds, i would add that past performance itself doenst mean anything when getting a guide for future returns. It does allow you to compare companies over the same period and you may prefer a fund that is more consistently lucky with their investment strategy than one that isnt. However, its the fund manager that is more important and how long they have been handling the fund. Once a fund manager changes, the past performance should be totally ignored. Usually a spread of funds over a range of sectors is desirable. This way you dont put all your egss in one basket. Historically, correct asset allocation would also have given the highest returns.