Financial Planning (Investment) and FCS
Discussion
Just looking for a bit of advice really from those who know more than I do on such matters. My searches have drawn a bit of a blank.
We currently have more than the FCS limit invested with a wealth management fund and it has been doing reasonably well, about 4% profit.
We could add a considerable chunk more as it’s doing nothing in the bank and our IFA is understandably keen.
My concern really is that it would be a large sum (about 3 times the FCS limit) with only one institution if things go bad.
Any advice would be greatly appreciated. TIA.
We currently have more than the FCS limit invested with a wealth management fund and it has been doing reasonably well, about 4% profit.
We could add a considerable chunk more as it’s doing nothing in the bank and our IFA is understandably keen.
My concern really is that it would be a large sum (about 3 times the FCS limit) with only one institution if things go bad.
Any advice would be greatly appreciated. TIA.
Edited by horza on Monday 18th March 17:04
Edited by horza on Monday 18th March 17:04
horza said:
Just looking for a bit of advice really from those who know more than I do on such matters. My searches have drawn a bit of a blank.
We currently have more than the FCS limit invested with a wealth management fund and it has been doing reasonably well, about 4% profit.
We could add a considerable chunk more as it’s doing nothing in the bank and our IFA is understandably keen.
My concern really is that it would be a large sum (about 3 times the FCS limit) with only one institution if things go bad.
Any advice would be greatly appreciated. TIA.
Just want to double check when you say "wealth management fund" - are you invested in a number of funds that your IFA has spread your money across?We currently have more than the FCS limit invested with a wealth management fund and it has been doing reasonably well, about 4% profit.
We could add a considerable chunk more as it’s doing nothing in the bank and our IFA is understandably keen.
My concern really is that it would be a large sum (about 3 times the FCS limit) with only one institution if things go bad.
Any advice would be greatly appreciated. TIA.
Edited by horza on Monday 18th March 17:04
Edited by horza on Monday 18th March 17:04
horza said:
It’s one fund but the individual investments are spread over a number of things.
50% is ‘low’ risk and 50% in a ‘medium’ risk fund. Overall profit was 4% last year.
Assuming the money is fully invested and spread across multiple funds you should be covered under FSCS50% is ‘low’ risk and 50% in a ‘medium’ risk fund. Overall profit was 4% last year.
https://www.investcentre.co.uk/sites/default/files...
That said, even if above the FSCS limit, some/most investors are happy to accept the risk with individual fund providers
https://www.vanguard.co.uk/documents/portal/litera...
Right, thanks for that Derek.
So the cash is protected up to £85K and the investments up to £50K. I’m sure the cash reserve is very low on the account but the investment seems to be spread over a large number of individual investments. Would you recommend I just clarify this with my IFA?
On the face of it, it would seem that we are covered but I’d rather be sure as at a £50K limit we would be over by a very long way!
So the cash is protected up to £85K and the investments up to £50K. I’m sure the cash reserve is very low on the account but the investment seems to be spread over a large number of individual investments. Would you recommend I just clarify this with my IFA?
On the face of it, it would seem that we are covered but I’d rather be sure as at a £50K limit we would be over by a very long way!
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