ISA - what fund to go for?
ISA - what fund to go for?
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Discussion

NewbieP99

Original Poster:

165 posts

165 months

Tuesday 19th March 2013
quotequote all
hi

any recommendations on what to put the 11.2k stocks & shares allowance into? any suggestions would be great....deadline is nearly here!

dalenorth

930 posts

197 months

Tuesday 19th March 2013
quotequote all
Ive had a couple of lion trust funds in a lion trust ISA, and they seam to be doing pretty well. So far anyway??????

spoofking

24 posts

193 months

Tuesday 19th March 2013
quotequote all
Without meaning to sound harsh, but that question is like asking

"can you recommend me a car"!!

How long can you save for, what do you want the money for, if it went down in value how upset would you be? Have you got a long enough investment term so you can remain invested to see it rise again, what is your attitude to investment risk, what is your tolerance to loss. Are you an experienced investor or saver?

Loads of variables for you to think about. There are 1000's of funds avaialble all with different areas of investment.

I would take a look at Hargreaves Landsdown and go from there.


GTRStage1

78 posts

163 months

Tuesday 19th March 2013
quotequote all
Why invest with a second rate fund manager?

Buy Berkshire Hathaway shares and invest with the best.

Also - you don't need to pick the shares straight away...you can put the money in the ISA and then invest at a later date smile

jonah35

3,940 posts

187 months

Tuesday 19th March 2013
quotequote all
GTRStage1 said:
Why invest with a second rate fund manager?

Buy Berkshire Hathaway shares and invest with the best.

Also - you don't need to pick the shares straight away...you can put the money in the ISA and then invest at a later date smile
But all your eggs are then in one basket. Warren is in his 80s so what happens when he dies?

What if berkshire get in trouble?


GTRStage1

78 posts

163 months

Tuesday 19th March 2013
quotequote all
jonah35 said:
But all your eggs are then in one basket. Warren is in his 80s so what happens when he dies?

What if berkshire get in trouble?
I wouldn't describe it as one basket:

http://en.wikipedia.org/wiki/List_of_assets_owned_...

He is in his 80's...and when he dies a succession plan is in place - who better to pick the next CEO('s) than the person who has put in place great management teams at many of Berkshire's subsidiaries?

I am not sure how Berkshire could get in trouble to be honest - it is massively diversified with around $40bn in cash and a AAA credit rating.

85Carrera

3,503 posts

267 months

Tuesday 19th March 2013
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Default option should be low cost tracker

Depending on your attitude to risk, how long you're investing for you may want to look at other options

Then, as mentioned, it's a "how long is a piece of string" question

I find that investing in the previous year's worst performing sector does quite well as a buy and hold strategy as sectors tend to be over bought or over sold

NewbieP99

Original Poster:

165 posts

165 months

Tuesday 19th March 2013
quotequote all
medium risk, term of say 3 years...what would be a good mix of products or any fancies at the minute?

hornet

6,333 posts

280 months

Tuesday 19th March 2013
quotequote all
NewbieP99 said:
medium risk, term of say 3 years...what would be a good mix of products or any fancies at the minute?
One of the Vanguard "Life Strategy" funds maybe? Variety of funds with different equity to bond holdings, from 100% equity down to 20%.

Here's what's in the 80% flavour :-

Vanguard FTSE Developed World ex-U.K. Equity Index Fund 34.2%
Vanguard FTSE U.K. Equity Index Fund 28.0
Vanguard U.K. Government Bond Index Fund 9.4
Vanguard Emerging Markets Stock Index Fund 6.7
Vanguard U.S. Equity Index Fund 6.3
Vanguard U.K. Investment Grade Bond Index Fund 6.3
Vanguard U.K. Inflation-Linked Gilt Index Fund 4.6
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 2.4
Vanguard Pacific Ex-Japan Stock Index Fund 1.2
Vanguard Japan Stock Index Fund 0.9
Total 100.0%

https://www.vanguard.co.uk/documents/portal/factsh...

Could doubtless build something like that yourself with trackers and ETFs if you didn't want to be tied to one fund manager, but that looks like a pretty decent "one shop stop" to me. Could certainly form the "sensible trousers" core of a portfolio at the very least. If I had the full £11.2k to play with, I'd be thinking about moving the cash in now, then drip feeding into something like the above as regular investment, maybe keeping a small chunk aside for riskier waters or pure punts.

"Dammit Jim, I'm a doctor not a financial advisor" etc smile