Opening a S&S ISA and picking funds
Discussion
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hstewie said:
hstewie said: I think you're confusing the fund with the platform.
Fundsmith is a fund.
LifeStrategy is a fund.
Cavendish is a platform provider.
You can buy Fundsmith and LifeStrategy directly or through a platform provider.
If you buy directly you can only buy Fundsmith or Vanguard products because that's all they sell as you've gone direct.
If you go with Cavendish (there are loads, that's my example) you can buy whatever you like subject to the ISA limits.
What you can't do is contribute to multiple ISA's in the same tax year.
So you could do exactly what you said, or you could open an ISA with someone like Cavendish and add £1000 of Fundsmith, £1000 or LifeStrategy, and if you want to add monthly you can do so in whatever order/ratio/mix you want.
Sorry I was on the same page as you. Fundsmith is a fund.
LifeStrategy is a fund.
Cavendish is a platform provider.
You can buy Fundsmith and LifeStrategy directly or through a platform provider.
If you buy directly you can only buy Fundsmith or Vanguard products because that's all they sell as you've gone direct.
If you go with Cavendish (there are loads, that's my example) you can buy whatever you like subject to the ISA limits.
What you can't do is contribute to multiple ISA's in the same tax year.
So you could do exactly what you said, or you could open an ISA with someone like Cavendish and add £1000 of Fundsmith, £1000 or LifeStrategy, and if you want to add monthly you can do so in whatever order/ratio/mix you want.
So what I'm thinking is Fundsmith direct and contribute until the end of March.
Then open a Vanguard LifeStrat for that financial year, leaving Fundsmith be.
If Cavendish offered both then I could combine both for less hassle and more contribution but then wouldn't I be paying more? In fees etc?
Kingdom35 said:
If Cavendish offered both then I could combine both for less hassle and more contribution but then wouldn't I be paying more? In fees etc?
Maybe a little, it depends on the flexibility you want.Remember that @ 0.25% v 0.15% you're more or less talking sod all initially.
Worth a look http://monevator.com/compare-uk-cheapest-online-br...
bhstewie said:
hstewie said: Maybe a little, it depends on the flexibility you want.
Remember that @ 0.25% v 0.15% you're more or less talking sod all initially.
Worth a look http://monevator.com/compare-uk-cheapest-online-br...
Just had a look Cavendish offer the Fundsmith Fund but the charges are 1.25% compared to just 0.9% direct.Remember that @ 0.25% v 0.15% you're more or less talking sod all initially.
Worth a look http://monevator.com/compare-uk-cheapest-online-br...
H&L offer it also for just under 1%.
I wanted to go with Vanguard but I don't think they offer it but il call them to find out, as I wanted to go for their low fees.
Makes sense though as then I can contribute to both, rather than faff around moving about each tax year or hoping that the fund becomes available.
Thanks all really helpful.
Kingdom35 said:
Just had a look Cavendish offer the Fundsmith Fund but the charges are 1.25% compared to just 0.9% direct.
H&L offer it also for just under 1%.
I wanted to go with Vanguard but I don't think they offer it but il call them to find out, as I wanted to go for their low fees.
Makes sense though as then I can contribute to both, rather than faff around moving about each tax year or hoping that the fund becomes available.
Thanks all really helpful.
Where are you looking as I'm seeing 0.96% on that?H&L offer it also for just under 1%.
I wanted to go with Vanguard but I don't think they offer it but il call them to find out, as I wanted to go for their low fees.
Makes sense though as then I can contribute to both, rather than faff around moving about each tax year or hoping that the fund becomes available.
Thanks all really helpful.
Kingdom35 said:
One thing I did think though...if a fund has a Min monthly investment of £25, how can you maintain this if you have two funds over 2 different tax years and only able to pay into one? Surely the non-active/left fund will then mean you cant contribute and match this min inv payment?
Pretty sure that's their threshold for direct debit/automated contributions.You don't have to put £25 (or whatever) a month.
bhstewie said:
hstewie said: Where are you looking as I'm seeing 0.96% on that?
Adding in Cavendish Fees as well?The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
Kingdom35 said:
Adding in Cavendish Fees as well?
The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
Vanguard only offer Vanguard - that's why their platform fee is so cheap The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
Remember that published fund returns are usually net so are after the fund management fees i.e. if a fund publishes that it returned 20% last year they returned 20% regardless of whether the fund management fee is 0.2% or 2% if that makes sense.
Kingdom35 said:
The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
AFAIK, Cavendish fees are .25%. Vanguard are .15%. Vanguard won't carry Fundsmith.A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
Kingdom35 said:
Adding in Cavendish Fees as well?
The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
Don't bother ringing, Vanguards list - https://www.vanguardinvestor.co.uk/what-we-offer/a... some are available in inc/acc.The problem I have right now is, the managed funds side of the ISA's are all 2/3 times more than Vanguard. H&L, Cavendish and Fidelity have the Fundsmith Fund but theyre fees are a lot higher than Vanguard for the managed funds side.
A bit of a headache. Going to ring Vanguard and hope they have the Fundsmith Fund :-)
bhstewie said:
hstewie said:Kingdom35 said:
Just had a look Cavendish offer the Fundsmith Fund but the charges are 1.25% compared to just 0.9% direct.
H&L offer it also for just under 1%.
I wanted to go with Vanguard but I don't think they offer it but il call them to find out, as I wanted to go for their low fees.
Makes sense though as then I can contribute to both, rather than faff around moving about each tax year or hoping that the fund becomes available.
Thanks all really helpful.
Where are you looking as I'm seeing 0.96% on that?H&L offer it also for just under 1%.
I wanted to go with Vanguard but I don't think they offer it but il call them to find out, as I wanted to go for their low fees.
Makes sense though as then I can contribute to both, rather than faff around moving about each tax year or hoping that the fund becomes available.
Thanks all really helpful.
I'm not in a position to buy it direct from Fundsmith as they have an investment minimum of £5M. If you buy direct from Fundsmith then it's 1.05% for mortals in the T class.
bhstewie said:
hstewie said: Vanguard only offer Vanguard - that's why their platform fee is so cheap
Remember that published fund returns are usually net so are after the fund management fees i.e. if a fund publishes that it returned 20% last year they returned 20% regardless of whether the fund management fee is 0.2% or 2% if that makes sense.
That makes sense now thank you, appreciate that explanation :-)Remember that published fund returns are usually net so are after the fund management fees i.e. if a fund publishes that it returned 20% last year they returned 20% regardless of whether the fund management fee is 0.2% or 2% if that makes sense.
xeny said:
AFAIK, Cavendish fees are .25%. Vanguard are .15%. Vanguard won't carry Fundsmith.
Called Cavendish, theyre model portfolio is basically self managed. Its 0.25% and the guy said you can go with what they suggest or mix it up. Am I being naïve and thinking the only managed part is the initial portfolio they suggest? I think my brain is frazzled.
What would Vanguard do any different compared to Cavendish, ie Model Portfolio at Cavendish with me adding in Fundsmith or Vanguard Life Strategy and no Fundsmith.
My guess is here and the "Managed Portfolios" tab https://www.cavendishonline.co.uk/investments/fund...
xeny said:
Do you have a link for this Cavendish managed portfolio?
What do you mean by "do any different" I thought you were looking for an execution only broker to hold some funds you picked (I got the impression a Vangaurd tracker of some sort and Fundsmith)?
Hi no I'm looking for a company to model a portfolio to my needs. Like the next post...this is the link - Medium Risk - https://www.cavendishonline.co.uk/investments/fund...What do you mean by "do any different" I thought you were looking for an execution only broker to hold some funds you picked (I got the impression a Vangaurd tracker of some sort and Fundsmith)?
bhstewie said:
hstewie said: My guess is here and the "Managed Portfolios" tab https://www.cavendishonline.co.uk/investments/fund...
Yes this Medium Risk - Growth.My point is, I must be confusing myself but is it a case that these funds within will stay the same and the make up of each fund just changes....they wont pull out of a fund if its performing poorly and then re-direct me to another fund will they? So in essence il be in the same funds from day 1...when would they ever make any changes? Apart from the makeup of each fund!
bhstewie said:
hstewie said: My guess is here and the "Managed Portfolios" tab https://www.cavendishonline.co.uk/investments/fund...
Model Portfolios?@Kingdom35 - I think those are essentially sample funds to populate an ISA - you're free to buy sell them as you wish, they're not "managed" as such. Yes the contents of the funds may change, but that will be at the discretion of the fund managers.
From the small print at the bottom of the list:
" The above model portfolio is just a guide. Cavendish Online does not offer advice and we operate an execution-only service."
xeny said:
Model Portfolios?
@Kingdom35 - I think those are essentially sample funds to populate an ISA - you're free to buy sell them as you wish, they're not "managed" as such. Yes the contents of the funds may change, but that will be at the discretion of the fund managers.
From the small print at the bottom of the list:
" The above model portfolio is just a guide. Cavendish Online does not offer advice and we operate an execution-only service."
Yes Model Portfolio. So yes Self-managed@Kingdom35 - I think those are essentially sample funds to populate an ISA - you're free to buy sell them as you wish, they're not "managed" as such. Yes the contents of the funds may change, but that will be at the discretion of the fund managers.
From the small print at the bottom of the list:
" The above model portfolio is just a guide. Cavendish Online does not offer advice and we operate an execution-only service."
I think what il go for is through Cavendish the Vanguard Lifestrategy 60. Keep it simple, then build up more knowledge.
Not sure if there is an alternative to Cavendish who offer the Vanguard and Fundsmith for the same rates, but 0.25% sounds good to me.
Kingdom35 said:
Not sure if there is an alternative to Cavendish who offer the Vanguard and Fundsmith for the same rates, but 0.25% sounds good to me.
http://monevator.com/compare-the-brokers/http://www.comparefundplatforms.com/
Some providers don't charge an ongoing fee but do charge per trade i.e. whenever you buy a fund.
It's a numbers game in that at some point one approach will cost more or less than the other i.e. no ongoing fee and £5/trade might sound good but if you're buying 5 funds every month @ £5/trade/fund all of a sudden it gets more expensive than simply paying 0.25%.
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