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  • FIRST POST
    walsh
    FIDELITY MINI S & S ISA
    • #1
    • 12th Jan 05, 3:39 PM
    FIDELITY MINI S & S ISA 12th Jan 05 at 3:39 PM
    MY HUSBAND PAYS 50 A MONTH INTO THIS ISA TO USE FOR LONG TERM INVESTMENT. HE WANTS TO INCREASE CONTRIBUTIONS TO AROUND 200 PER MONTH BUT BEFORE HE DOES HE WANTS TO KNOW WHETHER THIS IS A GOOD ONE OR NOT.

    IT MENTIONS ON THE STATEMENT INITIAL CHARGES OF 3.25% - HE'S HAD THE ISA FOR OVER 3 YEARS - WILL THIS BE THE AMOUNT PER MONTH HE IS PAYING.

    I UNDERSTAND THIS IS VERY HIGH AND CAN LOWER ANY PROFITS.

    WOULD HE BETTER OFF STARTING A NEW TRACKER WITH VERY LOW CHARGES - I'VE READ THAT THESE ARE BEST FOR LONG TERM INVESTMENTS.
Page 1
    • dunstonh
    • By dunstonh 12th Jan 05, 6:25 PM
    • 98,579 Posts
    • 67,061 Thanks
    dunstonh
    • #2
    • 12th Jan 05, 6:25 PM
    Re: FIDELITY MINI S & S ISA
    • #2
    • 12th Jan 05, 6:25 PM
    IT MENTIONS ON THE STATEMENT INITIAL CHARGES OF 3.25% - HE'S HAD THE ISA FOR OVER 3 YEARS - WILL THIS BE THE AMOUNT PER MONTH HE IS PAYING.

    I UNDERSTAND THIS IS VERY HIGH AND CAN LOWER ANY PROFITS.
    3.25% is actually below average for an advice product. Most of the banks & B/socities charge 5-6%

    However, you can purchase online with no initial charge so you can avoid that.

    WOULD HE BETTER OFF STARTING A NEW TRACKER WITH VERY LOW CHARGES - I'VE READ THAT THESE ARE BEST FOR LONG TERM INVESTMENTS
    One of the highest charged funds is the fidelity special situations. It is also one of the top performing uk funds and has wiped the floor with trackers. I suggest you read some of the recent threads on trackers which highlight the bad points. Too often certain websites focus on the good points, such as low charges and ignore the bad points.

    if your husband wants to pay 200pm, i would suggest he considers pay 50 into 4 funds with a funds supermarket provider (such as fundsnetwork, cofunds, selestia) as this will allow a large selection of funds with one provider and he can diversify the investment which is far more important than saving 0.5% a year on charges.
  • walsh
    • #3
    • 14th Jan 05, 3:17 PM
    Re: FIDELITY SPECIAL SITUATIONS & RECOVERY
    • #3
    • 14th Jan 05, 3:17 PM
    Financial adviser has just advised him to transfer fund to Special Situations & Recovery - would it not be wise to put 200 a month into something like this.

    Being used as a retirement fund.
    • dunstonh
    • By dunstonh 14th Jan 05, 9:07 PM
    • 98,579 Posts
    • 67,061 Thanks
    dunstonh
    • #4
    • 14th Jan 05, 9:07 PM
    Re: FIDELITY MINI S & S ISA
    • #4
    • 14th Jan 05, 9:07 PM
    Its a good fund historically. I have a chunk of my pension in that fund. However, putting all your eggs in one basket is the old fashioned way. At 200pm he can have 4 funds. I would suggest 4 funds as you spread the risk and reward.
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