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Hi there, I am starting my investment journey an

22 November 2021

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Question by Veronica

Hi there,

I am starting my investment journey and looking into opening an ISAs account. I like ii but I keep reading that it is not a good choice for small portfolios. As far as I understand, there is no fee if you commit to a £25 monthly invest. Why is it a bad choice for a small portfolio then?

Many thanks

Answered by Kris Amliwala

Hi Veronica,

If there is a no-fee offer, then it feels like they are no detriment for smaller portfolios. Usually smaller portfolios would be subject to a charge that represents a larger percentage of the overall portfolio, for example, £50 annual fee of a £1,000 ISA is bigger than £50 annual fee of a £5,000 ISA.

Please also look into the conditions of the £25pm (i.e. minimum duration & fees after this time etc). Also, it might be worthwhile reviewing the cost of the funds that you could choose to invest in, in addition to any platform costs.

Best wishes

Answered by

Kris Amliwala

Chartered Financial Planner

I really enjoy helping people align their wealth to their life goals and ambitions. By first spending time in understanding you, your life and your goals, before looking at cashflow planning and then if needed, any financial solutions, I find delivers the most rewards.