MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I've never had a Stocks & Shares ISA before but have a few grand that's just sat in a Cash ISA not doing a lot.
As I would have no idea about which funds to invest it, I'm just looking at something I can open, have guidance based on risk, invest and then leave.
MoneyFarm looked interesting as there's no charges whatsoever under £10k for the first year.
Any other companies I should be looking at?
no charges whatsoever under £10k for the first year.
I'd bet they'll claw year one charge back over future years though.
Can't see anything that says that in reviews.
Also, the 0.25% you will pay a year (on average) in fund costs seems competitive.
I'm not looking to beat the market or anything, just out perform a Cash ISA.
The rates of return they're suggesting are crap TBH. You'll be invested in ETFs, which is fine if you understand them and their inherent risks. If you don't then don't invest.
Have a look at Nutmeg, the costs are higher but its far more transparent and you'll be invested in equities rather than derivatives.
Apologies, Nutmeg is also mainly ETF-based. I seem to recall it used passive unit trusts when it was first around.
This explains [url= https://blogs.cfainstitute.org/insideinvesting/2014/01/30/a-skeptical-view-on-etfs/ ]why ETFs can be risky[/url]
Personally I wouldn't touch either of them.
Personally I wouldn't touch either of them.
But is that because you know what you're talking about and would take the DIY approach.
I'll have a read of that link...thanks.
I've got my stocks and shares ISA with Fundsmith. Returns have been good so far (although everything is a bit up in the air at the moment with Brexit) and the fees aren't bad. Pretty much pay the money and forget if you want although my understanding is you generally get better returns and reduced risk if you pay money in regularly. Not many user input options but I'm hoping they are better at than me.
dooosuk: yes I diy invest, but I don't dabble in ETFs because of the liquidity risk and at some point in the not too distant future I think we will have another liquidity crisis.
And as for Fundsmith... the performance has been excellent, no doubt about that, but it surely can't keep going as it has up to now. It's a decent long term bet but in the short term it could be bumpy!
I genuinely don't know where I'd invest a lump sum in the current market - the UK markets are fully priced due to QE and the future is uncertain, and overseas markets look even less tempting due to the newly weak pound. Maybe spend it?!?