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Self-select ISA vs mini-cash ISA?
insomniac
Posts: 19 Forumite
Hi,
I've been reading this article on trustnet:
http://www.trustnet.com/general/news/display-story.asp?id=75424&db=educational
It suggests that with a self-select ISA you can invest in anything, including cash.
Does this make it a good alternative to a cash ISA? Can I put £7000 in a self-select ISA and invest it in a trust or fund that has guarunteed fixed returns? Can any one give examples of such things?
Thanks.
I've been reading this article on trustnet:
http://www.trustnet.com/general/news/display-story.asp?id=75424&db=educational
It suggests that with a self-select ISA you can invest in anything, including cash.
Does this make it a good alternative to a cash ISA? Can I put £7000 in a self-select ISA and invest it in a trust or fund that has guarunteed fixed returns? Can any one give examples of such things?
Thanks.
0
Comments
-
I've been reading this article on trustnet:
http://www.trustnet.com/general/new...&db=educational
It suggests that with a self-select ISA you can invest in anything, including cash.
I think that it's just a slight sloppiness of language. You can invest £4000 in a stocks and shares mini ISA and another £3000 in a cash mini ISA, or put £7000 in a s&s maxi ISA and keep some of it in ( taxed ) cash - the latter is, I suspect, what the writer of the article meant. There is the option of a maxi ISA with a cash component but AFAIK 1) they aren't offered by many providers and 2) the s&s part isn't self select.Does this make it a good alternative to a cash ISA?
Absolutely not. It's a whole different level of risk.Can I put £7000 in a self-select ISA and invest it in a trust or fund that has guarunteed fixed returns? Can any one give examples of such things?
No, guaranteed products are not allowed within a maxi ISA. The closest thing you will get to a guaranteed product is gilts held to redemption but you'd be hard put to find gilts that don't guarantee a loss, right now.
HTH
Cheerfulcat0 -
MAXIs can have guarantees on death (i.e. return of capital invested if you die and investment has dropped below initial amount). For some people, that is the only guarantee they are concerned with.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.0
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