H&s Isa

The_Fiddler_2

It says you need to invest at £3000 pounds. i don't want to put this into funds in a lump sum. Can I invest it as cash initially (Perhaps evern the full £3600) and then move it into funds when I deem fit.

Is H&L still a good provider to go with?

turbobob

Yep you can hold it in cash for the intention of investing, but any interest on cash within a stocks and shares ISA is subject to tax.

The_Fiddler_2

I'm thinking about picking funds, how many should I opt for, for my £3600?

Is it best to select from Mark Dampier's Wealth 150 selection? Does he make good recomendations?

What are the best sectors to look at?

The_Fiddler_2

I don't mind being adventurous - what sectors would be considered adventurous?

Ian_W

The_Fiddler wrote: »

I'm thinking about picking funds, how many should I opt for, for my £3600?
Is it best to select from Mark Dampier's Wealth 150 selection? Does he make good recomendations?
What are the best sectors to look at?

Best sectors to look at are the ones that are going to boom next - which are they? Pass!!
As well as the Wealth 150 I'd also look Trustnet's ADVISOR FUND INDEX
Aggressive version. That's funds picked by a panel of IFAs.
With £3600, I'd go for 3 or 4 funds.
Adventurous sectors? Specialist [Gold, Natural resources, Financials, Property?], Emerging Markets, Far East, USA?

turbobob

Its one of those questions that's never going to get a definitive answer! And actual investment advice is something no-one can give you on this forum. If this is your first investment I would urge you not to invest above the level of risk you are really prepared to take though.

In terms of sectors an example of what I would consider adventurous would be emerging markets. Within that sector you have a range of risk attached as well. A fund focussed on one market (e.g. China) will almost certainly have a greater risk and volatility than one that spreads the investment into various countries. As a rule, they will carry much more risk than say a balanced managed or UK growth fund though. The "specialist" sector can contain almost anything - commodities, technology and so on. Some of them have shown great returns, like the JPM Natural Resources fund, but will they continue to do so? Or is it a bubble like the tech stocks were in the late 90's?

Wealth 150 contains some very good funds, and some questionable ones IMO.. But I am not an expert by any means. I would not rule anything out on the basis that its not in the list, or include it purely on the basis that it is!

Your £3600 strictly speaking would limit you to 3 initial funds going on the £1000 minimum initial investment rule. But you can switch around smaller amounts than this into new funds once you set up the initial investment, as someone has posted on here.

I would suggest having a read of Munk's post here and doing a bit of research. Something I find particularly useful on Trustnet is the portfolio scanner. This allows you to see in one place how your selection of funds work together, and how their past performance and volatility compare against various benchmarks.

The_Fiddler_2

turbobob wrote: »

Its one of those questions that's never going to get a definitive answer! And actual investment advice is something no-one can give you on this forum. If this is your first investment I would urge you not to invest above the level of risk you are really prepared to take though.

I know, I know and I know

Like anyone, I don't WANT to lose money, who does , but I am willing to take risk with my ISA

In terms of sectors an example of what I would consider adventurous would be emerging markets. Within that sector you have a range of risk attached as well. A fund focussed on one market (e.g. China) will almost certainly have a greater risk and volatility than one that spreads the investment into various countries. As a rule, they will carry much more risk than say a balanced managed or UK growth fund though. The "specialist" sector can contain almost anything - commodities, technology and so on. Some of them have shown great returns, like the JPM Natural Resources fund, but will they continue to do so? Or is it a bubble like the tech stocks were in the late 90's?

I'm glad I am thinking along the right lines with reguard to what is risky. I'm thinking of three or 4 from different sectors.

Wealth 150 contains some very good funds, and some questionable ones IMO.. But I am not an expert by any means. I would not rule anything out on the basis that its not in the list, or include it purely on the basis that it is!

True

Your £3600 strictly speaking would limit you to 3 initial funds going on the £1000 minimum initial investment rule. But you can switch around smaller amounts than this into new funds once you set up the initial investment, as someone has posted on here.

ME!!! , but I was refering to putting the £3600 in as cash, and then hoping to drip feed from there - can I do that - i.e. not need to put £1000 straight into a fund in a oner?

I would suggest having a read of Munk's post here and doing a bit of research. Something I find particularly useful on Trustnet is the portfolio scanner. This allows you to see in one place how your selection of funds work together, and how their past performance and volatility compare against various benchmarks.

Thanks I will.

turbobob

The_Fiddler wrote: »

ME!!! , but I was refering to putting the £3600 in as cash, and then hoping to drip feed from there - can I do that - i.e. not need to put £1000 straight into a fund in a oner?

I think that would work. I can confirm that I recently transferred less than £1000 from another ISA into the HL cash account, and then put that cash into a new fund. It wasn't questioned and went through without issue :money: