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  • FIRST POST
    • neildt
    • By neildt 13th May 18, 4:12 PM
    • 19Posts
    • 1Thanks
    neildt
    Stocks and Shares ISA Advice
    • #1
    • 13th May 18, 4:12 PM
    Stocks and Shares ISA Advice 13th May 18 at 4:12 PM
    Iím looking to start investing with a stocks and shares ISA using HL. Iím 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?
Page 1
    • dunstonh
    • By dunstonh 13th May 18, 4:23 PM
    • 94,539 Posts
    • 62,491 Thanks
    dunstonh
    • #2
    • 13th May 18, 4:23 PM
    • #2
    • 13th May 18, 4:23 PM
    Am I better have a range of different funds that span different countries?
    Not on just £5000. There are around 10 main sectors. If Japan was say 3% weighting on your model, then on £5 that equates to £150. Not worth the effort.

    Stick to multi-asset funds for now. Realise that you neither have the knowledge or understanding to build a bespoke portfolio as well as your investment amount being too small to make it worthwhile.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Bravepants
    • By Bravepants 13th May 18, 4:25 PM
    • 447 Posts
    • 500 Thanks
    Bravepants
    • #3
    • 13th May 18, 4:25 PM
    • #3
    • 13th May 18, 4:25 PM
    It very much depends on your age and your intended use for the money. A 20 year old starting out and saving for 40+ years, would have different requirements than say someone in their late 40s looking to retire at 55 for example.
    • neildt
    • By neildt 13th May 18, 4:29 PM
    • 19 Posts
    • 1 Thanks
    neildt
    • #4
    • 13th May 18, 4:29 PM
    • #4
    • 13th May 18, 4:29 PM
    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.?
    • neildt
    • By neildt 13th May 18, 4:35 PM
    • 19 Posts
    • 1 Thanks
    neildt
    • #5
    • 13th May 18, 4:35 PM
    • #5
    • 13th May 18, 4:35 PM
    Also when looking to invest what are the top features I should be looking for?
    • dunstonh
    • By dunstonh 13th May 18, 4:46 PM
    • 94,539 Posts
    • 62,491 Thanks
    dunstonh
    • #6
    • 13th May 18, 4:46 PM
    • #6
    • 13th May 18, 4:46 PM
    I was looking to just invest in managed trackers.
    That is a contradiction. You invest in managed or trackers. Although an experienced unbiased investor may well use managed AND trackers in a wider portfolio

    What sort of returns can I expect.?
    What asset classes? You can get trackers in fixed interest securities, property and equities. Returns will be very different. Also timescale would come into play.

    Also, if you are intent on building a bespoke portfolio of fund on £5k then what model are you going to follow? How often are you going to rebalance and review it? What level of due diligence and research criteria are you going to use?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • neildt
    • By neildt 13th May 18, 5:03 PM
    • 19 Posts
    • 1 Thanks
    neildt
    • #7
    • 13th May 18, 5:03 PM
    • #7
    • 13th May 18, 5:03 PM
    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.
    • sjp999
    • By sjp999 13th May 18, 5:11 PM
    • 95 Posts
    • 71 Thanks
    sjp999
    • #8
    • 13th May 18, 5:11 PM
    • #8
    • 13th May 18, 5:11 PM
    Copied from elsewhere, thanks to George for the typing...

    - Vanguard LifeStrategy 60% (this is also available at 100%, 80%, 40% and 20%)
    - L&G Multi Index Funds (similar to Vanguard they have a range of funds with different levels of risk and potential return)
    - HSBC Global Strategy Funds (again they have a range of these a set above)

    If you're going with HL you might also want to check out Blackrock Concensus, I believe their higher risk, 100% & 85%, equity offerings attract a healthy discount on charges.
    Last edited by sjp999; 13-05-2018 at 5:13 PM. Reason: Grammer
    • neildt
    • By neildt 13th May 18, 5:13 PM
    • 19 Posts
    • 1 Thanks
    neildt
    • #9
    • 13th May 18, 5:13 PM
    • #9
    • 13th May 18, 5:13 PM
    Thanks, Do you have any views on

    LF LINDSELL TRAIN UK EQUITY CLASS D - ACCUMULATION (GBP) Wealth 150+ fund
    • sjp999
    • By sjp999 13th May 18, 5:24 PM
    • 95 Posts
    • 71 Thanks
    sjp999
    More expensive than the set 'em and forget 'em funds above, that said - LT do seem to know what they're doing but there's no guarantee they'll continue to do so e.g. Woodford

    If you are thinking of going with LT, have you checked their Global Equity fund? Way more globally diversified (gee, really?), others might also suggest the Fundsmith Equity though HL doesn't discount the charges a la the LT funds.
    • dunstonh
    • By dunstonh 13th May 18, 5:43 PM
    • 94,539 Posts
    • 62,491 Thanks
    dunstonh
    Thanks, Do you have any views on

    LF LINDSELL TRAIN UK EQUITY CLASS D - ACCUMULATION (GBP) Wealth 150+ fund
    Originally posted by neildt
    Same issue as already mentioned. That fund would fill your UK allocation. What funds are you going to use for the other 9 sectors?

    What weightings are you going to use for each of the other sectors?

    You should stick to simpler options to begin with until you know what you are doing.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • jimjames
    • By jimjames 13th May 18, 5:53 PM
    • 12,744 Posts
    • 11,430 Thanks
    jimjames
    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.?
    Originally posted by neildt
    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
    • By rathernot 13th May 18, 6:00 PM
    • 279 Posts
    • 76 Thanks
    rathernot
    Iím looking to start investing with a stocks and shares ISA using HL. Iím 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?
    Originally posted by neildt
    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
    • By Prism 13th May 18, 6:01 PM
    • 475 Posts
    • 390 Thanks
    Prism
    Thanks, Do you have any views on

    LF LINDSELL TRAIN UK EQUITY CLASS D - ACCUMULATION (GBP) Wealth 150+ fund
    Originally posted by neildt
    I am going to use Dunstonh's comment to help give you an idea why allocation to funds can be so complicated.

    Same issue as already mentioned. That fund would fill your UK allocation. What funds are you going to use for the other 9 sectors?
    Originally posted by dunstonh
    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
    • By Prism 13th May 18, 6:04 PM
    • 475 Posts
    • 390 Thanks
    Prism
    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.
    Originally posted by rathernot
    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
    • By bostonerimus 13th May 18, 6:41 PM
    • 2,270 Posts
    • 1,572 Thanks
    bostonerimus
    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.
    Originally posted by neildt
    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.
    Misanthrope in search of similar for mutual loathing
    • aroominyork
    • By aroominyork 13th May 18, 7:19 PM
    • 645 Posts
    • 217 Thanks
    aroominyork
    There are around 10 main sectors.
    Originally posted by dunstonh
    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
    • By Drp8713 13th May 18, 7:24 PM
    • 831 Posts
    • 716 Thanks
    Drp8713
    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...?
    Originally posted by aroominyork
    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
    • By aroominyork 13th May 18, 7:31 PM
    • 645 Posts
    • 217 Thanks
    aroominyork
    But the thread is about stocks and shares so only your first six count, though maybe I interpreted S&S too literally.
    • bowlhead99
    • By bowlhead99 13th May 18, 7:48 PM
    • 8,245 Posts
    • 15,033 Thanks
    bowlhead99
    though maybe I interpreted S&S too literally.
    Originally posted by aroominyork
    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.
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