Gilts / bonds / equity ISAs - choosing a fund

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Caporegime
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Does anyone know about these? What's common wisdom with regards to decent funds to pick (don't know enough to pick my own shares)? I'm looking to invest an initial £1,000 with regular monthly payments for at least fifteen years, and my first thought was to just go to my bank (Natwest) and set one up through them.

How do bank ISAs generally perform, or is that too vague a question? Are their management charges generally considered exorbitant or reasonable?

Any specific recommendations for places I should put my money? Online management would be preferable.

This is for our daughter so I'd lean towards cautious / balanced, but I don't want to stick it in a JISA quite yet, as we haven't both maxed out our own ISA allowances yet so I don't see the point. If and when we do max out our personal ISAs, we can transfer to a JISA at that point. Slightly terrified of her reaching 18 and blowing it all on drugs and parties!

Thanks for any tips.
 
Always use your ISA allowance first, cash ISA's obviously give you a fixed return, but shares ISA's are a more risky investment but can potentially give you much bigger returns, but can also cost you money if the fund goes down in value.

You can invest upto £11240 (I think) a year in shares minus upto £5620 in a cash ISA. The benefit of ISAs is that they aren't subject to tax and you can keep accumulating funds in them on a yearly basis.
 
Didn't you just buy a new house? I'd have thought your mortgage rate is higher than any savings rate you can achieve at the high street (source : NZ market, your mileage may vary).
 
Jokester said:
Always use your ISA allowance first, cash ISA's obviously give you a fixed return, but shares ISA's are a more risky investment but can potentially give you much bigger returns, but can also cost you money if the fund goes down in value.

You can invest upto £11240 (I think) a year in shares minus upto £5620 in a cash ISA. The benefit of ISAs is that they aren't subject to tax and you can keep accumulating funds in them on a yearly basis.
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Thanks for your reply but I know all that, my question is about how to pick a decent fund / investment trust for a stocks and shares ISA.

[FnG]magnolia;23001421 said:
Didn't you just buy a new house? I'd have thought your mortgage rate is higher than any savings rate you can achieve at the high street (source : NZ market, your mileage may vary).
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Yeah but a couple of things, the cash would be tied up in the equity of the house and if we end up living there for thirty years, there'd be no cash for my daughter, and secondly the £1k has come from relations that have asked me to invest it. I don't think mummy and daddy's mortgage would count!
 
Bank ISAs tend to be cash ISAs though, you want to look at companies like L&G or M&G who do extensive Shares ISA options and other investments.

As what to invest in, you just need to research them and as the oldage goes, past performance is no indication of future performance.
 
Jokester said:
Bank ISAs tend to be cash ISAs though
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Well no, most banks offer stocks and shares ISAs.

Jokester said:
As what to invest in, you just need to research them
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That's exactly what I'm doing by asking the question. Maybe there are some people here that know about unit OEICs and investment trusts, self-select services, how to get the lowest commission rates, etc.
 
No offence Jokester, but so far in this thread you have described the limits and tax benefits of ISAs in response to a question about fund selection, told me that banks don't do investment ISAs, and finally recommended that I see an IFA with £1k. £1k is far too low an amount to bother taking to an IFA :p.

There's a 70 page stock market thread that isn't full of people saying 'see a professional'. I don't see why this thread, the subject of which is far less specialist, needs to be either.

Anyone else?
 
Robbie G said:
No offence Jokester, but so far in this thread you have described the limits and tax benefits of ISAs in response to a question about fund selection, told me that banks don't do investment ISAs, and finally recommended that I see an IFA with £1k. £1k is far too low an amount to bother taking to an IFA :p.

There's a 70 page stock market thread that isn't full of people saying 'see a professional'. I don't see why this thread, the subject of which is far less specialist, needs to be either.

Anyone else?
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No that's fair enough, let someone on the internet quide your childs future investment fund rather than a professional.
 
Go to your bank and use "their" IFA.. Seriously there is nothing else you can do sensibly.

Hell go to 3 banks and ask the same stuff if you have 6h to spare.
 
Robbie G said:
No offence Jokester, but so far in this thread you have described the limits and tax benefits of ISAs in response to a question about fund selection, told me that banks don't do investment ISAs, and finally recommended that I see an IFA with £1k. £1k is far too low an amount to bother taking to an IFA :p.

There's a 70 page stock market thread that isn't full of people saying 'see a professional'. I don't see why this thread, the subject of which is far less specialist, needs to be either.

Anyone else?
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Whilst I agree with you on every point, you're still talking about a grand. It is nothing. You could set up far better long term saving plans modelled around your child's adulthood than worrying over a few quarter of a percent here and there.
 
I think people place too much trust in IFAs most are commission based and will try and steer you to whatever pays the most and others only cover a banks range of expensive products
 
mattx2 said:
I think people place too much trust in IFAs most are commission based and will try and steer you to whatever pays the most and others only cover a banks range of expensive products
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IFAs are as thick as they come, lol if you use them. I had a conversation with one at Barclays, ended up giving him investment advice such a tool. I manage my own stock isas accounts, so there are no charges.
 
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mattx2 said:
I think people place too much trust in IFAs most are commission based and will try and steer you to whatever pays the most and others only cover a banks range of expensive products
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minister said:
IFAs are as thick as they come, lol if you use them. I had a conversation with one at Barclays, ended up giving him investment advice such a tool. I manage my own stock isas accounts, so there are no charges.
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I know that neither of you have a clue what you're talking about. :)

Kindly shut it, muppets.

As to the OP's question, it's a toughie. For the relatively small amount you're investing, it may be worth going for a cheap fixed income market tracker fund. I think anything actively managed may end up getting ravaged by costs at that level of initial investment. Just my thought, anyway.
 
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drew said:
I'm using these guys for my ISA allowance, http://www.fundsmith.co.uk, I like their investment model, Terry has a good track record.

Also have a chunk in here as well http://www.blackrock.co.uk/intermediaries/products/featured-products/blackrock-gold-and-general

Both have a regular lump sum going in.

DYOR, but Fundsmith is definitely worth a look.
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Thanks, I'll check them out.

Just looking at HL and Fidelity's discount broker services. I think a passive fund with 80% UK equity and 20% gilts, bonds, commodities, ETFs, investment funds, etc. would suit me fine. Going to see what there is along those lines on the discount broker sites. Although the initial amount is small, once set up there will be a fair amount each month going in..
 
Assuming she's a child you don't necessarily necessarily need a regular cash ISA for her tbh... as tax isn't likely an issue. Compare the rates with long term savings accounts, cash ISAs etc..

http://www.moneysupermarket.com/investments/isas/

http://www.moneysupermarket.com/savings/

http://www.moneysupermarket.com/savings/junior-isas/

Junior ISA might be worth a look as can be transferred to a normal ISA at 18... then again if its for uni and is going to be spent at that point anyway then a savings account could be fine too.
 
Jokester said:
No that's fair enough, let someone on the internet quide your childs future investment fund rather than a professional.
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It's £1000. You might as well shut the forums down now if that's your attitude - what if someone recommends a £10k new car in motors that the owner doesn't like when they take the advice. :eek:
 
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