Best way to invest 5k outside of an ISA?

kootchyrocker

Hi,

I'm new in here and looking for a bit of advice on investing.

I've been putting my full ISA allowance into an ISA account for the last 3 years or so, and the rest of my savings has been going into an HSBC online saver account. I'm thinking that i'd like to keep what i have in an ISA account as a 'rainy day' fund, but would like to look at other options with a higher return for my other account, currently sitting at over £5000.

I felt that the current stockmarket would be a good place to look, although i think i might prefer to look at funds. Can anyone offer any advice as to how i can go about investing in these, what areas or industries people think are a good bet, or any other ideas that you might have for putting away this cash? Am i better off doing this myself or going throgh a IFA?

I'm happy to put this away for 5 years or more, and would be interested in splitting between high and medium risk investments.

Thanks for any ideas!!!

Lokolo

Just a quick question before we go any further. You say you have filled up your ISAs, does this include the S&S (stock and shares) part of it? If so, what have you got in this?

kootchyrocker

no, i have just used the mini cash isa allowance for the last few years, so just the £3000 component.

debbie42

With 5K to invest, it may be better to do it yourself rather than via an IFA. You can still invest in a Stocks and Shares ISA, as opposed to cash ISA.

Have a look at the following thread for a discussion on investing:
http://forums.moneysavingexpert.com/showthread.html?t=416337

kootchyrocker

When i originally started looking into this a week ago, i was originally think of S&S ISA. but as soon as i started looking into some of the banks products, i found a lot of people recommending not to go get a S&S ISA, that the charges were too high for a generally poor return. i realise that is a bit of a generalisation, but wondered what the opinion was on this forum (wish i'd found this a fortnight ago!)?

I also thought i couldn't have a mini cash isa and stocks and shares isa at the same time? could i transfer my existing isa into a maxi isa without effecting this years allowance?

madkid88

whats the best S&S ISA to invest into.

Aegis

kootchyrocker wrote: »

When i originally started looking into this a week ago, i was originally think of S&S ISA. but as soon as i started looking into some of the banks products, i found a lot of people recommending not to go get a S&S ISA, that the charges were too high for a generally poor return. i realise that is a bit of a generalisation, but wondered what the opinion was on this forum (wish i'd found this a fortnight ago!)?

Bank products for investing tend to be rubbish. The general rule of thumb is that if you're offered an investment product by a bank, run away

However, stocks and shares ISAs don't have to be expensive. Hargreaves Lansdown are excellent (and free) if you want to buy in to open-ended collective investments (unit trusts or OEICs) at a great discount from their usual prices, while Selftrade are pretty good if you want to buy shares, ETFs or Investment Trusts. They charge £25 a year though, so you're really want to be sure of your long term tax savings before going for their ISA.

I also thought i couldn't have a mini cash isa and stocks and shares isa at the same time?

You can, as long as you don't exceed the overall contribution limits. You couldn't have a maxi ISA and a mini ISA in the same year, but that distinction has now gone away for good, if memory serves.

Jake'sGran

madkid88 wrote: »

whats the best S&S ISA to invest into.

No one should answer this question on this forum because they don't know. It depends on your attitude to risk. I was a complete novice when I started sometime in the 70s but managed to choose a famous fund that, unfortunately, has not been doing as well lately, like all the others. It was Fidelity Spec.Sits.

People have been making money investing in BRIC funds (Brazil,Russia,India and China) but I think oil was doing very well for those in the know. I've had some money with M & G for a long time and it never seemed to be in funds that were doing well but last year I moved it, still with M&G, into Global Basics and have been impressed with the returns so far.

If you take a look at some of the performance tables you may be able to decide on one that suits you depending on your attitude to risk. Have a look at Digital Look, iii, Bestinvest, Motley Fool etc.

mark13

I also have money invested in the M&G Global funds.It has been performing well, even during these unstable last few months, but you do need to look at a longer time line.

If you are thinking of funds , then Fidelity Funds Network is a good plae to start.

munk

Fidelity's FundsNetwork is great in terms of the service you get but the initial charges are higher than Hargreaves Lansdown - and their service is comparable if not better than Fidelity's.

There's some observations on the pros/cons of investing DIY vs with an IFA vs Direct (ie via the fund provider themselves) here:

http://forums.moneysavingexpert.com/showthread.html?p=7928011#post7928011

kootchyrocker

Hargreaves Lansdown seems like the sensible option then! I don't suppose anyone can recommend a good place to look that compares funds?

2 other questions - if anyone out there is reading this

I've seen some funds advertised as being within an ISA. What does this mean? How would it effect me with a cash isa?

And lastly, what is the difference between 'accumulating' and 'income'? Is this just reinvesting to buy more shares vs cashing in any dividends (for want of a better word)?

Thanks