Hi there, I am starting my investment journey an
22 November 2021
Question by Veronica
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?
Answered by Kris Amliwala
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.
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