Have you looked at Fidelity? Most investment trusts allow you to put in regular savings as low as around £50 a month. There is a transaction fee to managed investment trusts. But I've been putting money aside to passive trackers for years, and there are no purchase fees.
A saving habit is a good thing to do Put your £100/month into a Cash ISA and, by the end of the tax year (April 2013) you will have +/-£1000 earning about 3% interest, tax-free. It's always a good idea to have some 'rainy day' easy-access cash saved for emergencies rather than tied up in investments/assets that can take time to cash up and which may incur charges in order to do so. Once you've got your base money saved, then think about more risky or long-term investments.
I invest each month in some M&G funds, for example, which are in their Stocks & Shares ISA wrapper. The choice of funds is more limited but the admin costs tend to be cheaper and any profits are tax-free. If you get onto the Moneysupermarket comparison site you'll find that M&G are tempting in new customers by waiving the initial charge and offering a 1% annual charge. Other organisations are offering similar deals on tracker funds.
Hi Cogito, Thanks for replying, I understand that £100 a month is a low amount to invest but thats all I can afford at 18, and i'm trying to get into a habit of saving. I understand that i'll have to incorporate the trust into a stocks and shares isa wrapper, but I still have the problem of finding a cheap provider/broker - (if that's the right term?), as an isa is just a wrapper and not a product in itself.
Have you used up your tax-free Cash ISA allowance? Could the investment trust you've chosen be incorporated into a stocks and shares ISA? £100/month is a low amount and many brokers will charge a minimum to process the trade.
Hi All, I'm currently a student at university, and have about £100 a month I'd like to put into a monthly savings scheme in an Investment trust i've chosen. Can anyone recommend a good discount broker with low charges? The two i'm currently weighing up are Hargreaves Landsdown and Selftrade.