Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Cash ISA
+ Reply to discussion
Options
sugrja
Posted: 20 September 2010 10:51:49(UTC)
#1

Joined: 28/07/2008(UTC)
Posts: 3
My partner has £7600 in a cash ISA and as the return is poor we were thinking of moving it into a stocks and shares ISA but is this a good time to move into stocks and shares and what should we invest in? We don't want to pay exhorbitant fees and would want something relatively safe as we are nearing retirement and don't want to lose all our money. Also would it be better to transfer it bit by bit rather than all in one go? Any advice would be appreciated.
Back to top Quote
Richard Gabb
Posted: 20 September 2010 13:58:15(UTC)
#2

Joined: 18/07/2009(UTC)
Posts: 4
Jupiter European Unit Trust on a drip fed basis using a Discount Broker such as CommShare. This is one of the least frequently recommended but most consistent funds over the longer term. +20% p. a. over the past 708 weeks for me !
Back to top Quote
joe stalin
Posted: 20 September 2010 14:05:25(UTC)
#3

Joined: 25/06/2010(UTC)
Posts: 15
many will no doubt argue against this but I believe you could do far worse than putting at least half the amount in UK banks shares such as Lloyds in particular. The company is making money hand over fits and is looking for ways to buy back its shares so that it can restore dividend payments. Other than that stocks sucg as Tesco or Vodafone may also make useful constituents to a portfolio. Most banks will rin self invest ISA's and the commisions are usually quite reasonable. just my personal opinions of course, perhaps an IFA will give you a more conservative opinion but no harm in saving - good luck!
Back to top Quote
Al
Posted: 20 September 2010 14:21:04(UTC)
#4

Joined: 09/06/2010(UTC)
Posts: 22
Depends on your circumstances - not enough information but if you can't afford to lose it all don't invest in one share - look at the hammering 'safe' BP got. If it is medium term growth you are looking at then most funds should spread that risk then the max downside / upside is closer to the market fall / rise predicted. If you are not confident gambling then leave it where it is. Most expert opinion just now is all over the place where the markets are concerned.
Back to top Quote
Pach
Posted: 20 September 2010 14:29:30(UTC)
#5

Joined: 20/09/2010(UTC)
Posts: 2
Go for a broad range of income funds, domestic and global ; e.g. Newton Global Higher Income, Schroder Far East Income and Global Equity Income, Artemis Income, Invesco Perpetual High Income, Jo Hambro Equity Income, Neptune Income. This should protect you from any unforeseen stock market volatility, as long as you hold your nerve and stick with the funds. Moreover, most funds will be concentrating on the bigger companies where dividends are more likely to be 'protected' and offer better security for this uncertain investment climate.
Back to top Quote
Rajah Brookes
Posted: 20 September 2010 14:31:59(UTC)
#6

Joined: 14/06/2010(UTC)
Posts: 3
If you are not in a hurry to make returns then why not wait for the next inevitable crash. They seem to be as regular as buses and earthquakes and we're due another about now. Cash is a pretty good thing to have during a crash because there'll be all kinds of bargains to pick up at the bottom. I'd probably keep it in cash until the end of the October crash season at least! If the stock market hasn't tanked by then then it might be worth getting into some defensives.

By way of comparison it'd be worth looking at a lot of big funds and seeing how heavily weighted they are towards cash at the moment compared with usual. I would suspect a lot of them are holding a lot more cash than usual, which suggests they expect a stock market correction at least and want some money in hand to go bargain hunting. Another tell tale is the shares owned by people in their own companies. I read an article several days ago saying that that money was running for the exits which is a bad sign.
Back to top Quote
msport
Posted: 20 September 2010 14:45:47(UTC)
#7

Joined: 08/02/2010(UTC)
Posts: 1
Tricky with relatively small amount in volitile market. I would keep 50% in cash split balance between 2 investment trusts Edinburgh IT and RIT the latters top priority is wealth preservation and is the investment vehicle for the Rothchilds and the former has good dividend yield and is performing very well in tandum with the FT100. Sensible drip feeds in dips but you will have dealing charges to get in.
Back to top Quote
john humphries
Posted: 20 September 2010 17:47:22(UTC)
#8

Joined: 20/09/2010(UTC)
Posts: 1
msport, I tend to agree with you. Nice and steady does it.
Back to top Quote
Mike Rutherford
Posted: 20 September 2010 18:31:09(UTC)
#9

Joined: 05/09/2010(UTC)
Posts: 5
Oh. so many questions but don't forget that there is no benefit holding dividend-paying stocks in an ISA unless U R higher rate payer or expect huge capital gains (a bit unlikely, I'd say in present market) because U don't tax relief on dividends. Stick with interest-payers (cash, bonds or income funds) whether in a cash or stocks & shares ISA. I hold some bonds paying 9% tax-free so I'm not that concerned if the capital value falls, only if they go bust before maturity. Note that for an ISA bonds must be min 5yrs to maturity.
Back to top Quote
Dennis .
Posted: 20 September 2010 18:47:21(UTC)
#10

Joined: 26/12/2007(UTC)
Posts: 1,018
Sorry Mike but you are wrong .

Taken from HMRC website http://www.hmrc.gov.uk/isa/faqs.htm

Q. What are the tax benefits of an ISA?

A. You pay no tax on any of the income you receive from your ISA savings and investments. This includes dividends, interest and bonuses.

You pay no tax on capital gains arising on your ISA investments (losses on ISA investments cannot be allowed for Capital Gains Tax purposes against capital gains outside your ISA).

The insurer does not have to pay tax on income and capital gains on investments used to back your ISA life insurance policies. You do not have to pay any tax when the policy pays out.

You can take your money out at any time without losing tax relief.

You do not have to declare income and capital gains from ISA savings and investments or even tell your tax office that you have an ISA.
Back to top Quote
2 Pages12Next page
+ Reply to discussion

Markets

Other markets