Regular (small) monthly investments

[Noviceinvester]

Pre kids (and Pre ISA),every time I moved job or had a substantial pay rise I would open a monthly investment trust putting in about £25-100 a month and it soon mounted up. I eventually closed them down as and when we needed the money for bigger expenses

now I am out of childcare costs and mortgages I would like to open a couple again but I don’t know where to turn. I’ve already put £20k in cash isa but everywhere I look it talks about investing in an isa

do investment trusts not exist in the same way now? Just looking at putting £50 a month in about 4 or 5 different ones.

any advice would be appreciated
thanks

Investment trusts do still exist. If you opened a self-select stocks and shares ISA with a good range of them you could manage them all under one account, rather than having one with Fidelity, one with F&C, and so on.

Oh I think I will have to wait till April to do that as I already have £20k in a cash isa for this year.

Depending on the small print of your ISA, you may be able to transfer money from it to a stocks and shares ISA, within the ISA tax exemption “envelope.”

I noticed your user name, so let me offer a word of caution about investment trusts - they can be an expensive way to invest in the stock market and it can impact your returns quite significantly over the longer term.

The investment trust manager will charge an ongoing fee - usually between 0.5% and 2% (which is quite high compared to something like an index tracker ETF or unit trust).

Also, check your platform fees carefully - some have an annual charge, plus a dealing charge for each transaction. So if you are making multiple investments in 4 or 5 trusts each month the fees might mount up considerably.

Low cost platforms such as InvestEngine and Vanguard don't offer investment trusts. Trading 212 offers commission-free investing, but if the Trust is denominated in a foreign currency they will charge an FX fee.
Well known established names such as Hargeaves Landsdown, A J Bell and Fidelity offer a wide range but the dealing and platform fees are much higher. For instance Fidelity charges £7.50 per transaction, so 5 transactions £37.50 a month. (These fees may be less for regular direct debits on some platforms).

Think about if an investment trust matches your aims for investing - many investment trusts are focused on providing a steady income stream with low volatility rather than growth potential over the longer term.

For a small amount being invested into 5 different etfs - you should set up an account with Investengine - you can choose your portfolio mix and a savings plan which will automatically allocate your monthly funds amongst your portfolio in the weight you have specified. And they will do this for 0% fees.

Great that you’ve got £20k max in a cash ISA this year as Rachel may reduce the limit you can save in the budget. Open a Stocks and Shares ISA in April and start investing. Shame you didn’t do it this year based on the huge gains this year. Good luck.