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    • Ahmed
    • By Ahmed 15th Mar 17, 10:59 AM
    • 38Posts
    • 4Thanks
    Investing stock and shares ISA
    • #1
    • 15th Mar 17, 10:59 AM
    Investing stock and shares ISA 15th Mar 17 at 10:59 AM

    An endowment has recently matured and I am interested in putting this away for 5+ years in a S&S ISA.

    I was looking at the HL select one that has been recently launched but will consider any.

    I would say I am medium risk.

    Any advice appreciated and looking at accumulation rather than income
Page 1
    • bowlhead99
    • By bowlhead99 15th Mar 17, 11:45 AM
    • 7,835 Posts
    • 14,310 Thanks
    • #2
    • 15th Mar 17, 11:45 AM
    • #2
    • 15th Mar 17, 11:45 AM
    The HL Select one that recently launched - you mean this one, right?

    But you said you were looking for medium risk. That is a high risk specialist fund, investing all its money into company shares. All the companies in which it invests are listed on the stock exchange of one country (UK) and have a common attribute (expectation of higher than average levels of dividend income). So it's specialist, and higher risk, designed to be held as part of a much broader portfolio including funds that hold things that aren't company shares, or invest in different types of companies, different parts of the world etc.

    As an idea, a lump sum investment of your endowment monies in that fund, in your five year period could end up lower in value by 30-40%+. So, you would need to blend it with some holdings of other funds to get down to a more medium risk level. But medium means different things to different people. You mention 5+ years. If you really mean 10+ years you have more time to ride out the UK economic cycle and market fluctuations, and it could be more suitable (but still should be part of a portfolio rather than held on its own).

    Also you mention looking at accumulation not income. One of the fund's main objectives is attempting to deliver a high level of natural income, by passing up other opportunities for potential growth that don't deliver a day-to-day income. But you don't even want income. So, even getting the "accumulating" version of a "UK Income" fund such as this, would seem a funny choice.

    Probably you should be looking at funds that invest across multiple countries, industries and asset classes. But still a period of "5+" years is short and restricts choices if you can't afford decent losses to occur in those 5 years because you might want to withdraw after 5.5 years.

    If you clarify whether actually you mean 10+, 15+, etc, and what sort of potential losses you could take before bailing out in fear of losing your shirt, others might suggest some funds that they use themselves, if they share those objectives.
    • Ahmed
    • By Ahmed 17th May 17, 3:23 PM
    • 38 Posts
    • 4 Thanks
    • #3
    • 17th May 17, 3:23 PM
    • #3
    • 17th May 17, 3:23 PM
    Thank you for that detailed post Bowlhead.

    I can risk losing arounf 5K of a 30K investment and to be honest this is all new to me.

    I can put the money away for 10 years if that will be a better option.

    What I meant by accumulation rather than income is that the fund grows rather looking for a monthly income from it. I can afford to leave it alone and not draw down from it during the period of the investment.
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