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Stocks and shares ISA

20 replies

Brahumbug · 23/12/2017 15:14

I am thinking of opening a stocks and shares ISA but i have no experience of investment but I am looking to invest for abut 10 years. A colleague said that they have one with Scottish mortgage investment trust and they rated it very highly. As anyone any experience with this fund? What are the running costs?
Thanks

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Brahumbug · 23/12/2017 15:15

I just realized how poorly worded parts of that areGrin

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SvartePetter · 23/12/2017 15:29

There is a good comparison table on monevator.com for choosing your s&s ISA wrapper provider. Essentially you need to know if it's best for you to have a fixed monthly fee or a percentage of invested amount which will depend on how much you have saved.

Once you have your ISA set up you decide what you want to invest in. Look into the difference between actively managed fund and a passive fund. To find out costs compare the fees. The Scottish mortgage investment trust charges 0.44% in fees which is not too bad. In comparison, I have quite a lot of vanguard vwrl which is charged at 0.25. You need to decide if you feel that the performance and management of the fund is worth the higher price.

19lottie82 · 23/12/2017 17:59

I use Nutmeg. It’s really simple to get going and invest, using an app on your phone.

Brahumbug · 23/12/2017 19:21

Thanks for the adviceGrin

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specialsubject · 23/12/2017 21:11

Gosh, high charges there. You can get trackers for 0.1% and if you are clever, no platform charge for at least a year. Shop around.

Orangeteddy · 24/12/2017 23:51

Also can recommend Nutmeg - simple to set up/use, low fees, good returns.

Brahumbug · 25/12/2017 06:58

Thanks for all the advice Grin

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Winebottle · 25/12/2017 13:30

I use Halifax for my platform and then buy low cost ETFs. It works out a bit cheaper than Nutmeg but is not as straight forward to use.

Aridane · 25/12/2017 13:33

I just do trackers - Legal & General are easy to use and low fees

scrabbler3 · 27/12/2017 23:25

Another vote for user-friendly Nutmeg. I invested £5k in December 2016 and it's now at £5480. I also got £120 cashback for signing up via Quidco -not sure if that's still possible.

80sMum · 27/12/2017 23:57

I've been using Hargreaves Lansdown for 16 years and can highly recommend them. If you're not sure what to invest in, HL offers ready-made portfolios tailored to your risk profile (you take a profiling quiz to establish your attitude to risk).

HL are not the cheapest if you have a lot of money to invest and will hold a large portfolio, but they're very competitive for the average, smaller investor. By small, I mean if your investment is less than about £60k.

As others have said, you could opt to hold tracker funds, which have very low charges, typically 0.03%. The alternatives are managed funds, which have ongoing management fees ranging typically from 0.5% up to 1.75%, or buying shares direct, for which you will be charged a transaction fee and stamp duty for each trade.

Holding individual shares is quite high risk, so never put all your money into just one company, choose several.

Managed funds do the hard work for you and invest in a range of equities and products within the objectives of the fund. A good fund manager should be able to beat the underlying index and give a better return than a tracker, but of course even the best managers can from time to time make bad decisions, so there are no guarantees.

The thing to always bear in mind is that investments can go down as well as up, so you need a long-term investment horizon (your suggested 10 years is good) in order to benefit from the (one hopes!) general upward trend over time, whilst riding out the dips and troughs.

Brahumbug · 28/12/2017 07:07

Once again, a big thank you to everyone for the useful advice Grin

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Brahumbug · 28/12/2017 07:18

Can I ask you scrabble 3, did you go for the active or passive fund, with Nutmeg?

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Brahumbug · 28/12/2017 07:19

Scrabbler 3 obviously, bloody autocorrect!

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smashbake · 28/12/2017 07:23

I second having a look at Hargreaves Lansdowne.

Brahumbug · 28/12/2017 07:49

The Hargreaves Lansdowne site is interesting and informative and the fund charge of 0.45% seems reasonable, but the on going charge of 1.45% seems a bit eye watering!

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SvartePetter · 28/12/2017 08:05

Which tracker funds do you have that charge 0.03%?

80sMum · 29/12/2017 00:42

Oops, sorry! That should be 0.13%!

80sMum · 29/12/2017 01:20

Bear in mind that, in addition to the management fee, the individual funds held within the Nutmeg portfolio will also have their own charges. It looks as though many of the funds used are simple trackers, ie not actively managed funds, so most of those charges are likely to be quite low, but some may not be and the client has no say in the choice of funds within the portfolio.

Brahumbug · 15/01/2018 12:49

Just an update. I have gone with Nutmeg ISA, and do far I am pleased with the result. Thanks everyone for your advice.

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