Stocks and Shares ISA Advice

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  • jimjames
    jimjames Posts: 17,621 Forumite
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    neildt wrote: »
    Am mid 30s. Currently the £5k I have is in a cash ISA and is returning hardly nothing.

    I was looking to just invest in managed trackers.

    What sort of returns can I expect.?

    If all you have is £5k then putting it in S&S ISA isn't a great idea. You're far better to keep an emergency fund and then once you have that in place look to start investing.

    If you have this £5k on top of an emergency fund then it's certainly worth getting started. If not then you could always start a monthly investment to begin your S&S ISA.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • rathernot
    rathernot Posts: 339 Forumite
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    neildt wrote: »
    I’m looking to start investing with a stocks and shares ISA using HL. I’m looking to invest initially around £5K.

    Can anyone give some basic advice of the types of funds I should be looking at? Obviously im looking for the best possible return.

    Am I better have a range of different funds that span different countries?

    Forgive me if you understand this but I feel it worth pointing out.

    Is this money you need to keep?

    The reason I ask is with any investment you could put £5k in today and wake up tomorrow to find it's worth zero - unlikely but possible.

    With savings you'll make less return but you'll wake up tomorrow with at least your original £5k in the account.

    Investing is supposed to be long term so regardless of what investment fund(s) you choose just make sure you're comfortable with that risk and timescale.
  • Prism
    Prism Posts: 3,803 Forumite
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    neildt wrote: »
    Thanks, Do you have any views on

    LF LINDSELL TRAIN UK EQUITY CLASS D - ACCUMULATION (GBP) Wealth 150+ fund

    I am going to use Dunstonh's comment to help give you an idea why allocation to funds can be so complicated.
    dunstonh wrote: »
    Same issue as already mentioned. That fund would fill your UK allocation. What funds are you going to use for the other 9 sectors?

    Dunstonh has refered to this fund as a UK fund. The fund itself is in the UK sector. Myself, I would call this a global fund that barely represents the UK at all. To do allocation well with managed funds like this you have to understand the business's underneath. Even then there is a level of guess work.

    I would stick with a multi asset global fund for the time being and let someone else worry about these things
  • Prism
    Prism Posts: 3,803 Forumite
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    rathernot wrote: »
    The reason I ask is with any investment you could put £5k in today and wake up tomorrow to find it's worth zero - unlikely but possible.

    Thats really unlikely if you stick to funds. The world economics would have to go into meltdown for that to happen and by that point cash isn't safe either. I would normally suggest the worst based scenario for fund investment is around a loss of about 50%, and thats likely only temporary.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    neildt wrote: »
    To be honest I!!!8217;m very new to stocks and shares investments as you can probably tell.

    At this stage I!!!8217;m wanting to move my £5K cash ISA to a stocks and shares ISA.

    Can you give me some examples of multi asset funds.

    Take a couple of weeks to read up about investing and how to put together a portfolio and manage it. It does not need to be complicated. In the end given your age and investment amount I think you should end up with something like VLS80. Make it your homework to understand why that multi-asset ffund (or something similar) is a good choice for a beginner with 5k to invest. Once you understand that and agree that it's a sensible choice you can proceed. Then continue reading and expanding your undertsanding.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • aroominyork
    aroominyork Posts: 2,827 Forumite
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    dunstonh wrote: »
    There are around 10 main sectors.
    What are your ten please? I can get to seven and then struggle: UK, North America, Developed Europe, Japan, Asia Pacific exc Japan, Emerging Markets, Small/Mid caps... then I wonder if you are looking at Growth/Value, Cyclical, Frontier Markets...?
  • Drp8713
    Drp8713 Posts: 902 Forumite
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    aroominyork wrote: »
    What are your ten please? I can get to seven and then struggle: UK, North America, Developed Europe, Japan, Asia Pacific exc Japan, Emerging Markets, Small/Mid caps... then I wonder if you are looking at Growth/Value, Cyclical, Frontier Markets...?

    I would guess the following:

    UK Equities
    USA Equities
    European Equities
    Asia ex Japan Equities
    Japan Equities
    EM Equities
    Gov Bonds
    Corp Bonds
    Property
    Commodities
  • aroominyork
    aroominyork Posts: 2,827 Forumite
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    But the thread is about stocks and shares so only your first six count, though maybe I interpreted S&S too literally.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    aroominyork wrote: »
    though maybe I interpreted S&S too literally.
    Yes probably. An "S&S ISA" can hold stock of companies (these days in the UK the common terminology would be: shares of companies) and it can also hold other financial instruments such as bonds, and it can also hold shares of investment companies or shares/units of investment funds.

    Not many people whose finances are being looked after by IFAs will want all their money to be invested exclusively in shares of companies (or shares of investment funds that only invest in company equity) - as even where they have that initial attitude, the IFA might during a discussion educate them that investing in other asset classes such as bonds or property etc with a portfolio approach can be useful and is very normal. So usually if an IFA talks about 10+ basic sectors in which to invest, they are not just looking at direct or indirect exposure to equities.
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    aroominyork wrote: »
    What are your ten please? I can get to seven and then struggle: UK, North America, Developed Europe, Japan, Asia Pacific exc Japan, Emerging Markets, Small/Mid caps... then I wonder if you are looking at Growth/Value, Cyclical, Frontier Markets...?

    I said "around" as there are always variations depending on your model. Some may include a sub-sector or combine sectors or not include a sector or two depending on the risk profile or actuarial data.
    Here are mine:

    Cash
    UK Corp Bonds
    UK Inded linked gilts
    UK gilts
    Global bonds
    Global high yield bonds
    Europe ex UK
    North America
    Japan
    Pacific ex Jap
    Emerging market
    property
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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