Stock & Shares ISA

Watch
aries424
Badges: 6
Rep:
?
#1
Report Thread starter 1 month ago
#1
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?

Thank you !!
1
reply
S1M001
Badges: 14
Rep:
?
#2
Report 1 month ago
#2
(Original post by aries424)
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?

Thank you !!
Vanguard is good, you get to decide which portfolio you’d like to invest in. I’ve chosen the S&P500 as it’s a bit of a safer bet and averages 8% per year. Nutmeg is also good and has an app whereas vanguard doesn’t. Nutmeg makes the process a bit easier and has a better interface. Both have quite low fees.

(I am also new to ISA’s so forgive me if I have made a mistake)
2
reply
aries424
Badges: 6
Rep:
?
#3
Report Thread starter 1 month ago
#3
(Original post by S1M001)
Vanguard is good, you get to decide which portfolio you’d like to invest in. I’ve chosen the S&P500 as it’s a bit of a safer bet and averages 8% per year. Nutmeg is also good and has an app whereas vanguard doesn’t. Nutmeg makes the process a bit easier and has a better interface. Both have quite low fees.

(I am also new to ISA’s so forgive me if I have made a mistake)
Okay, thank you - I appreciate it! I'll have a look into these right now, would you recommend investing all of the money? I've opened a saving's account too but the interest rate is horrible (as to be expected)
0
reply
duchamlet
Badges: 8
Rep:
?
#4
Report 1 month ago
#4
(Original post by aries424)
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?

Thank you !!
Go with Vanguard. With that sum of money, I think their fees are the most reasonable. The lack of an app isn’t that bad because their mobile website is well optimised anyway. I don’t know your appetite for risk but assuming that you’re still young, I’d go for their life strategy 100% with perhaps 2/3 of your money and then a fund that interests you (Vanguard have launched ESG funds which are focused on sustainability), or something a little safer such as a fund with a few bond holdings. If you’re considering this to be for either retirement or saving to buy your first house (under £450k) consider a platform that offers Lifetime S&S Isa’s as the government will top up 25% of your investments (so if you invest £2000, the government will add an extra £500). Be aware that Vanguard don’t offer this as of yet. I’d recommend checking out these two links if you want a bit more help:

Money Saving Expert: https://www.moneysavingexpert.com/sa...s-shares-isas/

r/ukpersonalfinance’s own resources:
https://ukpersonal.finance/

If you have any questions I’d be more than happy to help.
Last edited by duchamlet; 1 month ago
2
reply
neal95
Badges: 20
Rep:
?
#5
Report 1 month ago
#5
First you should decide what type of investment vehicle you want to invest in - Is it an open ended fund, investment trust, ETF etc? As a beginner your probably better off in a simple open ended fund, as you can get your money out quickly and easily and there is no stamp duty to pay.

Also you will need to do some research over the method of investing, do you want to have a manager invest in growth companies of the future on your behalf, or would you prefer a computer to track an index of stocks?

Both approaches have pros and cons, with indexes you are missing out on the high growth opportunity companies which are yet to become the next big things. For example, growth funds/trusts invested in companies like tesla and space x before they became a big thing and whilst they were cheap, meaning huge profits for early stage investors who gave money to the funds and trusts to invest on their behalf.

following an index is known as passive investing and means that you will buy a little bit of a fund which owns a number of companies, often 100 - 500 companies. It is easy and a good habit to get into putting a sum of money each month into this form of investment, however you will be buying a lot of rubbish along with the good stocks. A lot of the stocks outside of the top 10-20 are not that good, but must be bought by the fund, if they are in the index.

As a more experienced investor i tend to stick to investment trusts and pursue a high growth strategy. However i have a high tisk tolerance and am happy to have a portfolio which will go through periods of volatility. I wont sell during this time, but will use it to buy more when it is cheaper, and continue to hold until it rises massively again. This route can net significant returns, and last year it was something like 120% (which is not typical btw but many companies experienced massive growth last year to the pandemic and digitalisation becoming more of a thing and accelerated).

An index is good if you just want to keep putting money in each month and not think too much about it, and is probably the easiest and most user friendly way to get into investing. I would reccomend checking out Interactive Investor or AJ Bell and opening a stocks and shares isa with them. II is the best one to open with, as it can all be done online and without snail mail if they need more documentation from you (the others insisted on me sending them stuff in the post lol)

Probably the most popular indexes to begin with are the S&P Global 500 or any of the vanguard lifestrategy funds (I would go with 80 or 100, probably 100 as you dont want too much of your portfolio in bonds when young)
Last edited by neal95; 1 month ago
2
reply
aries424
Badges: 6
Rep:
?
#6
Report Thread starter 1 month ago
#6
(Original post by neal95)
First you should decide what type of investment vehicle you want to invest in - Is it an open ended fund, investment trust, ETF etc? As a beginner your probably better off in a simple open ended fund, as you can get your money out quickly and easily and there is no stamp duty to pay.

Also you will need to do some research over the method of investing, do you want to have a manager invest in growth companies of the future on your behalf, or would you prefer a computer to track an index of stocks?

Both approaches have pros and cons, with indexes you are missing out on the high growth opportunity companies which are yet to become the next big things. For example, growth funds/trusts invested in companies like tesla and space x before they became a big thing and whilst they were cheap, meaning huge profits for early stage investors who gave money to the funds and trusts to invest on their behalf.

following an index is known as passive investing and means that you will buy a little bit of a fund which owns a number of companies, often 100 - 500 companies. It is easy and a good habit to get into putting a sum of money each month into this form of investment, however you will be buying a lot of rubbish along with the good stocks. A lot of the stocks outside of the top 10-20 are not that good, but must be bought by the fund, if they are in the index.

As a more experienced investor i tend to stick to investment trusts and pursue a high growth strategy. However i have a high tisk tolerance and am happy to have a portfolio which will go through periods of volatility. I wont sell during this time, but will use it to buy more when it is cheaper, and continue to hold until it rises massively again. This route can net significant returns, and last year it was something like 120% (which is not typical btw but many companies experienced massive growth last year to the pandemic and digitalisation becoming more of a thing and accelerated).

An index is good if you just want to keep putting money in each month and not think too much about it, and is probably the easiest and most user friendly way to get into investing. I would reccomend checking out Interactive Investor or AJ Bell and opening a stocks and shares isa with them. II is the best one to open with, as it can all be done online and without snail mail if they need more documentation from you (the others insisted on me sending them stuff in the post lol)

Probably the most popular indexes to begin with are the S&P Global 500 or any of the vanguard lifestrategy funds (I would go with 80 or 100, probably 100 as you dont want too much of your portfolio in bonds when young)
Wow, thank you for this - this has helped a lot. Sorry, you'll have to bare with me, I've just turned 18 and completely knew to the whole world of finance (let's just say I won't be putting Warren Buffet out of a job any time soon). The £2000 is really the only savings that I have, so I'll be looking at a more passive form of investment such as an index. Looking at the other replies too, I'll probably go for the S&P 500 Index Fund. I know you were saying you have quite a high appetite for risk, but would you recommend for me to invest all £2000? If not, where else should I put the money?

Hopefully in the future I'll be able to start looking into investing in individual companies, which companies do you think have high growth potential?
0
reply
neal95
Badges: 20
Rep:
?
#7
Report 1 month ago
#7
(Original post by aries424)
Wow, thank you for this - this has helped a lot. Sorry, you'll have to bare with me, I've just turned 18 and completely knew to the whole world of finance (let's just say I won't be putting Warren Buffet out of a job any time soon). The £2000 is really the only savings that I have, so I'll be looking at a more passive form of investment such as an index. Looking at the other replies too, I'll probably go for the S&P 500 Index Fund. I know you were saying you have quite a high appetite for risk, but would you recommend for me to invest all £2000? If not, where else should I put the money?

Hopefully in the future I'll be able to start looking into investing in individual companies, which companies do you think have high growth potential?
your welcome! if your going to be investing passively, i reccomend you to only invest the amount that you can afford to keep locked away for a few years - around 3-5 years minimum really - this way you give it time to grow a bit. as the gains arent as much in the short term, you could keep it in for 3-5 years and should expect a return of 5-8% yearly.

I think there are some decent shares that can be bought individually, but rather than pay £3+ per share for an individual company, i think its better to pay £3+ for a trust. This way, the managers can buy 30 or so companies, but the trust as a whole has more chance of succeeding as not all eggs are in one basket. So you have more chance of doubling or tripling/quadrupling your money, as even if one company dosent perform, another might.

I won't name any individual shares or trusts, but there are some good ones out there. You could look at renewable energy funds or stocks, cloud computing funds/stocks, biohealthcare stocks etc. google some forums like mse or citywire and see what the forums are saying. ive learnt a lot from there over the last couple of years.

Alternatively, you could do something short term. I'm personally sticking to my future strategy, as i believe digitalisation and high growth companies will be the long term future, even if in the short term people are doubling their money by investing in bank and oil shares as the economy starts to pick up. at the moment, value rather than growth seems to be in vogue, but i still think this is a moment in time and long term it will pay off to be in growth industries.

Anything offered by Baillie Gifford, who are growth specialists, is something worth looking into if you want to find out more about growth.
0
reply
Wōden
Badges: 15
Rep:
?
#8
Report 1 month ago
#8
(Original post by aries424)
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?

Thank you !!
I currently use Trading 212 ISA which I find is perfectly suitable for my needs, very easy to use.

I used to have a Santander stocks and shares ISA (before I knew better) which frankly was attrocious. Too limited number of investment options, fairly expensive fees and commissions, a ridiculously archaic website and user interface that was a nightmare to navigate, no real time tracking so you'd have to wait until the next day to see how your positions were doing, to purchase shares would take several hours if not a whole day to process, and to sell would take at least 5 working days by which time the price had invariably changed, usually down as sod's law would have it.
0
reply
martin7
Badges: 19
Rep:
?
#9
Report 1 month ago
#9
(Original post by aries424)
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?
Is this £2000 the whole of your savings?

You need to keep some of your savings in cash so you have easy access to it if required. Only once you have an emergency fund available in cash (e.g. in instant-access savings accounts) should you consider investments. Look at investments as being longer-term savings, but where you're looking to find better returns than cash, while accepting the risk of losing (some of) your money.
0
reply
zzpop
Badges: 3
Rep:
?
#10
Report 6 days ago
#10
(Original post by aries424)
Hey there,
I currently have around £2000 that I want to try save/invest. I only live with my mum and she's clueless with finance, and so I have to figure this one out myself.
Does anyone know the best Stock and Shares ISAs?

Thank you !!
Hey. I'm using Freetrade for investing into shares/stocks. They have a free account option or you can go with an ISA for a small monthly fee. Very intuitive app that's super easy to use and has lots of options including funds and individual stocks
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Poll: What factors affect your mental health most right now? Post-lockdown edition

Anxiousness about restrictions easing (27)
5.67%
Uncertainty around my education (55)
11.55%
Uncertainty around my future career prospects (56)
11.76%
Lack of purpose or motivation (63)
13.24%
Lack of support system (eg. teachers, counsellors, delays in care) (26)
5.46%
Impact lockdown had on physical health (21)
4.41%
Social worries (incl. loneliness/making friends) (50)
10.5%
Financial worries (29)
6.09%
Concern about myself or my loves ones getting/having been ill (19)
3.99%
Exposure to negative news/social media (31)
6.51%
Difficulty accessing real life entertainment (14)
2.94%
Lack of confidence in making big life decisions (47)
9.87%
Worry about missed opportunities during the pandemic (38)
7.98%

Watched Threads

View All