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Investment Trusts

08/02/2021

The Basics

Investment trusts can claim a pedigree as long as the cash register, with the oldest going back more than 150 years. Unlike a cash register, there is no guarantee that they’ll dispense cash, but they have done a good job of growing wealth over the years, which explains their enduring popularity.

At heart they are just another collective fund, not dissimilar from a unit trust or OEIC. They bundle together your savings with those of other people and a fund manager invests them in stuff – shares, bonds, property – which they believe will increase your wealth over time.

They come in a variety of flavours, investing in different areas of the stock market – Europe, the US, or smaller companies for example. There are also trusts investing in more unusual areas – infrastructure, care homes or renewable energy. Investment trusts also come with a few bells and whistles, which can make them a useful tool for those who need an income from their investments.

In a nutshell

• Trades like a normal share on the London Stock Exchange
• Invests in a diversified mix of investments – a good one-stop shop
• Typically costs around 0.65% per year
• Available on all the major platforms, but watch how they charge for them

Is It Right For Me?

Good if you ...

  • Are comfortable with stock market risk
  • Want access to lots of companies at low cost
  • Need an income from your investments

Not Good if you ...

  • Want to pick your own shares
  • Can't tolerate variation in your capital
  • Don't want to pay fees to a fund manager

The Numbers

  1. Popular investment trust picks
  2. Discounts and premiums
trusts Jan.jpg

What are other people choosing to invest in? Learn from the wisdom of crowds to get a shortlist of investment trusts you may wish to consider.

Best-sellers

Best-selling investment trusts of January 2021

Shown in the image: Some of the best selling investment trusts from platforms AJ Bell, Fidelity, interactive investor and Hargreaves Lansdown in January 2021.

See full list here.

 

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The price of the investment trust does not always fully reflect the price of the underlying assets. Trusts trade on the stock exchange and operate like a normal share, which mean the price is influenced by supply and demand.

In practice this means that the trust may hold £1000 of HSBC shares and £1000 of Vodafone shares, but it won’t necessarily trade at £2000. It may be that the trust’s price is just £1,900. This ‘discount’ to ‘net asset value’ means investors can pick up £2000-worth of assets for the bargain price of £1900. But it does occasionally work in reverse with a fund trading at a premium.

P.S. In reality, trusts will have more than two companies in them – we were just keeping this example simple!

The Benefits

• Access to a ready-made, diversified bunch of investments

• Allows you to invest in a wide range of companies and businesses, plus fixed income, property and exciting niche areas such as renewables

• Allows you to invest around the world

• Allows you to build a valuable income stream

The Detail

What sort of investment trust do I need?

That, of course, depends on you – how much risk you want to take, how long you have to invest, how much cash you have. If you have no firm idea about where you want to invest, there are lots of generalist investment trusts that invest across the world, giving you a bit in, among others, the US, China, Europe and Japan. These are the oldest, largest and best-established trusts, including Witan, Scottish Mortgage or Foreign & Colonial.

If you have a particular region in mind, you could home in on that, but you will still need to decide the type of investment you’re looking for. Do you prefer higher octane smaller companies, for example, which give you high potential rewards, but at higher risk? Or would you prefer an investment that pays a steady income?

Investment trusts also offer a way to invest in more unusual areas. There are an increasing range of trusts investing in areas such as renewable energy, care homes or student accommodation. These can provide an interesting alternative to mainstream investments and, potentially, another source of income.

Why can investment trusts be a better option than normal funds?

It would be wrong to claim that investment trusts are fundamentally different to other funds, but they do have some advantages. Their closed-ended structure is key: this means the manager doesn’t have to buy or sell shares when an investor decides to buy or sell. This sounds like a niche point, but can be really important at times of market turmoil: the fund manager can keep hold of their prize investments rather than being forced to sell them to meet redemptions. It also means investment trusts are a better option for assets that aren’t readily traded – commercial property, infrastructure, wind farms, private equity.

Possibly because they allow fund managers more freedom, investment trusts have tended to deliver better returns than other collective funds – the data is complex and difficult to navigate but is from clever people at CASS Business School, so we trust it. Also, investment trusts have a board in place to look after investor interests, so if a fund manager doesn’t perform well, the board can give them a kick, or get rid of them, depending on how bad things get.

There are other quirks that give investment trusts an edge. They can borrow (‘gearing’) to improve returns. Most use this selectively as it can go the other way if markets drop. They can also reserve income in buoyant times to pay it out in bad times. This is useful when companies cut dividend payments. Finally, it is worth noting that the price of the investment trust does not always reflect the price of the underlying assets with trusts trading on a premium or discount. That means investors can occasionally get, say, £100 worth of shares for £90.

How are they charged?

Investors buy investment trust shares just as they would shares in a normal company. As such, the charges are similar: there will be stockbroker’s commission on buying and selling; a small bid/offer spread and stamp duty of 0.5% on purchases. In addition, investors pay the annual management fee of the trust.

The stockbroker’s commission varies considerably and can be particularly important if you are saving regularly into an investment trust. If you’re saving £200 per month and losing £15 every month as a trading fee, that’s money down the drain, so make sure you’re with the right platform.

There will also be major differences between the cost of the different trusts. The larger trusts tend to benefit from economies of scale and therefore will be cheaper. The UK-focused City of London Investment trust and the international Scottish Mortgage investment trust (run by Baillie Gifford) both have an ongoing charge of 0.36%, almost as low as a passive fund.

In general, you don’t need very much to start investing in a trust. However, minimum investment levels and charges are usually set by the investment platform and some have special arrangements for investment trusts. For example, the annual charge to hold investment trusts in the HL ISA or SIPP is 0.45% but is capped at £45 p.a. in the ISA and £200 p.a. in the SIPP.

Why are they good for income investors?

Investment trusts can be a good option if want an income from your investments. They can reserve up to 15% of the income they receive from the investments they hold (interest and dividends, for example), squirrelling it away for a rainy day. If companies have a tough year and cut dividends, the investment trust manager can then use the reserve to shore up the payout to shareholders. This can help give investors a more reliable dividend stream over time.

Some trusts, known as ‘dividend heroes’ have built an astonishing track records of paying out dividends consistently and growing them a little more every year. The AIC currently lists 19 trusts with a track record of year-on-year dividend increases over 20 years or more. There are also a broad range of trusts with more than a year’s worth of dividend payments in reserve.

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Related Questions

Got a Question?

  • I have a cash ISA that is maturing next week. Can I transfer a cash ISA to a Stocks and Shares ISA with another provider? Will I still keep my £20,000 annual allowances?

    Shreekant | UK | 18/10/2020 | 3

    • Stocks and Shares ISA
    • Cash
    Anna Stoughton's Response

  • I want to move my children's stocks and shares ISA to a robo adviser - what are my options?

    Funmi | LDN | 12/10/2020 | 8

    • Stocks and Shares ISA
    • Junior ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • Hi! All going well I will be selling my flat next month and will be left with a large sum. Do you have a recommendation as to where I could put this money to best use during that time?

    Matt | MLN | 18/09/2020 | 6

    • Cash
    • Online Investment Platforms
    Anna Stoughton's Response

  • My question was about a man offering a 22.2% average return on his stock picking ability. I've tried to find reviews of his services but cannot find them anywhere except on a really old forum of his older product 'Spreedbet Beginner' where people have said they are blocked pretty swiftly on Twitter etc if they raise an issue. What is even more odd is that he cannot be found on Companies House. I would like your opinion on this matter as I have no idea what I should do.

    Max | Lincolnshire | 27/08/2020 | 21

    • Stocks and Shares ISA
    • Funds
    Holly Mackay's Response

  • As a retiree with spare cash, how can I invest outside of my pension?

    Wilson | ARL | 19/08/2020 | 1

    • Stocks and Shares ISA
    • Pension
    Susie Bewell's Response

  • We would like to open a fully managed Stocks and Shares ISA with a lump sum, and a drip feed of approx £30 month. Which providers would you suggest for first time investors?

    Sally | Stirlingshire | 10/08/2020 | 5

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I'm 22 and have a comfortable safety buffer in cash. I'm contributing to my workplace pension and into a Cash LISA. I would now like to put £100 a month into a Stocks and Shares ISA for at least ten years. However, I wanted to know if there is any possibility of reducing risk after this time? For example, could I perhaps transfer to a lower % Equity Fund?

    Lucy | London | 02/08/2020 | 4

    • Stocks and Shares ISA
    Holly Mackay's Response

  • If I were to invest with A J Bell or Hargreaves Lansdown in a self select Stocks & Shares ISA and they were to 'go bust', what would happen to my investment?

    David | County Down | 28/07/2020 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I'm 50 now and hope to retire at 60. I have been paying into Vanguard Lifestrategy for a few months now. I have just 9.5 years to pay in and grow, do you think this is a long enough period to invest in or should I stick with cash if shares and bonds are likely to take a hit in a few years?

    Richard | Hull | 25/06/2020 | 43

    • Online Investment Platforms
    • Funds
    • Pension
    Holly Mackay's Response

  • Due to COVID-19, is now a good entry point in the market for someone who's never invested before? I am 24 and investing to buy a property in 5-10 years.

    Ben | London | 30/03/2020 | 12

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Holly Mackay's Response

  • It seems like a good time to invest during the coronavirus. Would it be a better idea to drip feed from cash into funds/stocks in case COVID-19 coupled with a hard Brexit means the markets drop further?

    Malti | London | 29/03/2020 | 8

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Holly Mackay's Response

  • I was going to sell my investments when COVID-19 surfaced, are any platforms faster at carrying out a deal?

    David | Strathclyde | 26/03/2020 | 1

    • Online Investment Platforms
    Holly Mackay's Response

  • I am approaching 75 and have mostly saved into cash - should I open a Stocks and Shares ISA for two years and then cash it in?

    Dale | UK | 23/03/2020 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    Holly Mackay's Response

  • I really don’t like this market meltdown during the coronavirus outbreak. Should I sell and just get out?

    | 19/03/2020 | 18

    • Private Pension
    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Shares
    • Robo Adviser
    • Online Investment Platforms
    • Funds
    • GIA
    • Pension
    Holly Mackay's Response

  • During the coronavirus market crash, my deposit for a flat is shrinking in my Stocks & Shares Lifetime ISA - what can I do?

    Sarah | UK | 18/03/2020 | 0

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Holly Mackay's Response

  • Should I still make regular ISA and pension investments in the current COVID-19 turmoil? Or is it better saving to cash?

    Andrew | UK | 17/03/2020 | 5

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    • Pension
    Holly Mackay's Response

  • I'm looking to start investing and I'm torn between Evestor and Vanguard Lifestrategy. The entry requirements are much higher for Vanguard (£500 upfront and £100/month) while Evestor starts at £1. Is there any benefit of stretching my investment to use the Vanguard fund? Also do you know if I miss a monthly payment, will I be charged?

    Charlie | UK | 30/07/2019 | 11

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    • GIA
    Michael Akinwotu's Response

  • I am confused about financial services compensation: I have a SIPP and an ISA with AJ Bell Youinvest, and am about to inherit a sizeable sum. I am already over the £85,000 financial services compensation limit. Should I be worried? Should I set up accounts with multiple platforms, to be covered by the compensation scheme?

    Emma | London | 22/07/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    Anna Sofat's Response

  • My brother is 17 and I have instilled in him to save. He puts £40 a month in and 10% of what he earns. I want him to save for short term and long term. What are the best accounts for him?

    Christine | Birmingham | 19/07/2019 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    Pete Matthew's Response

  • I am torn between investing in my ISA, and putting money into a personal pension. I know about pension grossing up, and the 25% tax free cash. However I will inevitably pay tax on the 75% which is not tax free. Whereas with the ISA, I don't get the grossing up benefit, but won't pay any tax. What do you think?

    Christopher | Staffordshire | 18/07/2019 | 2

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    Helena Wardle's Response

  • I have an inheritance to invest of £150,000. I am not paying into a pension at the moment but have £125,000 in my pension pot, and have fairly substantial money in Stocks and Shares ISAs. Should I put more into stocks and shares over a 10 year period, add to my pension funds, or invest in bricks and mortar with no mortgage?

    Mark | West Midlands | 12/07/2019 | 3

    • Stocks and Shares ISA
    • Workplace Pension
    • Mortgage
    Simon Bullock's Response

  • If I allow the transfer of my Baillie Gifford Scottish Mortgage Trust ISA, will it just go into a bigger Hargreaves Lansdown ISA pot? Meaning that when Hargreaves Lansdown as a whole falls, my investment is worth less?

    John | Lothian | 12/07/2019 | 3

    • Stocks and Shares ISA
    David Stone's Response

  • I am thinking of setting up a SIPP to diversify my investments and spread the risk. I'm nervous about doing my own investments, so I don't really know where to begin. Are there SIPPs which do it for you? Or if not, should I continue investing in my previous workplace pension?

    Holly | Sussex | 03/07/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    Lesley James's Response

  • I have opened my first Stocks and Shares ISA, and have a company pension on the new standard 5%/3% contributions. I have enough easy access savings to cover emergencies so I was wondering what would be a next good step, add to S&S ISA or open a SIPP for retirement?

    Kevin | Strathclyde | 14/06/2019 | 10

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    Pete Matthew's Response

  • My husband and I are new to investing and would like to make a minimum 10 years investment in Stocks and Shares ISAs, plus an ongoing £500 each a month. We're really keen on investing in ESG funds/companies only. To 'diversify', would it be better if one of us uses a robo-adviser and the other a traditional platform? For one to go active and the other passive approach? One higher risk than the other?

    Emma | Herefordshire | 13/06/2019 | 6

    • Stocks and Shares ISA
    • Sustainable Investing
    • Mortgage
    Simon Bullock's Response

  • I work for my company which funds my SIPP directly. I will be receiving compensation in the coming months - is it possible to pay SIPP contributions from the compensation payment? If pension significant contributions are not possible, what might we consider when looking for a tax efficient home for the compensation?

    Andy | Lancashire | 12/06/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    David Stone's Response

  • As a U.S. passport holder as well as a British citizen living in the UK, are there certain things I can't invest in?

    Megan | Scotland | 11/06/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Shares
    Zoë Dagless's Response

  • I have an ISA with Investec Click and Invest which is closing down, and I have to find somewhere else to invest the money. Which are some providers of a similar nature? I am considering either medium risk or high risk accounts.

    Michael | Surrey | 10/06/2019 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I have been putting £50/month for each of my two children into a pension with Hargreaves Lansdown. In light of the costs of investing highlighted on this website, should I move to somewhere with lower charges, or stay-put? Alternatively, would I be better to put money into a Lifetime ISA for each of them instead?

    Stuart | Cambridgeshire | 06/06/2019 | 4

    • Private Pension
    • Lifetime ISA
    Holly Mackay's Response

  • We were very sad to learn recently that Investec's Click and Invest was to be closed. We'd prefer to keep our ISA with a managed service, such as the one offered by Click and Invest, but will consider the DIY option if that proves to be the best on offer. Which platforms are well regarded ISA providers? I'd rather not go with a digital start-up offering, but a more established player.

    Mr & Mrs S. | Sussex | 30/05/2019 | 3

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I’m in my 30s and live in London. I have savings in cash but I’ve never tried any ISAs, stocks etc. before. I am looking for some suggestions as to the types of products I should use to begin investing. Instinct is telling me to keep 50% of my savings in a safe investment, 30% in a medium risk investment, 10% in higher risk, and keep 10% for emergencies. I’m making nothing keeping the cash in the bank!

    Lisle | London | 30/05/2019 | 5

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Tommy Watson's Response

  • I'm in my late 30s, have a mortgage, a baby, no outstanding loans or credit cards, three pensions, and two Cash ISAs. I’d like to invest to renovate our house, help fund our children’s education and help them onto the property ladder, and retire as soon as possible! I considered a LISA but thought I might be better paying off more of the mortgage. I'm also confused about using a platform for a Stocks and Shares ISA. Any advice would be appreciated! Keep up the good work, I’m impressed with how refreshingly approachable your website is.

    Nick | Berkshire | 29/05/2019 | 5

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Catherine Morgan's Response

  • Hello, I already have a workplace pension. Can I also have a private pension? If so, I have a LISA as well. Can I have all three in place?

    Precious | Surrey | 23/05/2019 | 0

    • Private Pension
    • Lifetime ISA
    • Pension
    • Workplace Pension
    Phoebe Smith's Response

  • Baillie Gifford is closing down its Investment Trust ISA and I am being forced to move elsewhere. Do I need to use an Investment Trust for my ISA? What is the most tax-efficient way to access Baillie Gifford's Scottish Mortgage where the majority of Investment Trust ISA was held?

    Andrew | Renfrewshire | 23/05/2019 | 1

    • Stocks and Shares ISA
    David Stone's Response

  • I want to invest in one specific company’s shares. What’s the cheapest way to do this via an ISA?

    Peter | Lincolnshire | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Anna Sofat's Response

  • I am a self-employed 55 year old, with only a state pension. What can I do to increase my money for retirement?

    Sandra | Dumfries and Galloway | 21/05/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • State Pension
    • Pension
    • Workplace Pension
    Helena Wardle's Response

  • I currently have a Stocks & Shares ISA and a Junior ISA with Wealthsimple. I am considering changing these to Vanguard, but I am unsure if transferring across providers is a simple process. Also can you only pay into one of each type of ISA per year?

    Philip | County Antrim | 21/05/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    Tommy Watson's Response

  • I'm 52 and want to retire at 55. I have a mortgage, but the interest rate is very low, and a Stock & Shares ISA into which I invest each month. The performance of the Stocks & Shares ISA has been mixed, and I'm nervous about Brexit/Trump/China. Should I pay off my mortgage or keep paying into the Stocks & Shares ISA?

    Paul | Glamorgan | 21/05/2019 | 3

    • Stocks and Shares ISA
    • Cash
    • Mortgage
    Lesley James's Response

  • We have just retired to France. Our pensions cover our expenses but we also have £230k which we would like to invest for a monthly income. Could you please explain the low-risk options we might want to consider?

    Keith | France | 10/05/2019 | 2

    • Private Pension
    • Stocks and Shares ISA
    • Online Investment Platforms
    • Pension
    David Stone's Response

  • I have just received a letter from JP Morgan saying that they will no longer offer ISA accounts from the end of September 2019. I have an ISA with them and seem to have a choice of transferring the ISA to another company "as is" or liquidating and reinvesting. Any thoughts?

    David | Staffordshire | 09/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • I've been reading about Beaufort Securities, and how they potentially didn't ring-fence investor money properly. What is the best way to avoid this happening to my money?

    Jenny | Greater Manchester | 29/04/2019 | 4

    • Stocks and Shares ISA
    • GIA
    • Other
    Anna Sofat's Response

  • I'm a 30 year old woman earning a reasonable salary with a low cost lifestyle. I have saved almost £8,000 and want to start investing. I like the idea of using a robo-investor like Wealthify, but I'm not sure if it's better to start with a Stocks and Shares ISA instead? Should I go with a Stocks and Shares ISA or a Robo Advisor, or both?

    Kate | London | 29/04/2019 | 6

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Pete Matthew's Response

  • I am a British/Irish citizen living in Malta and have between £5k-£10k to invest for 5 years. Clearly, ISAs are out as there is a requirement to be a UK resident. I am happy to accept a medium level of risk, and would appreciate some info on where to put this to maximise returns.

    Phil | Malta | 25/04/2019 | 4

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Zoë Dagless's Response

  • I've a Cash ISA with about £80k in it, so I'm considering moving £50k into a Stocks & Shares ISA. I'm 73, retired, married, a house-owner and would like to utilise my savings better. What would you recommend?

    Barry | Berkshire | 18/04/2019 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Helena Wardle's Response

  • I am a beginner investor and would like to invest in a "socially responsible" Stocks & Shares ISA. I have looked into the Nutmeg and Wealthify funds. Is there information about any other such providers on your website? And do you have any advice about how to compare the "socially responsible" criteria on the different funds?

    Joy | Glamorgan | 16/04/2019 | 2

    • Stocks and Shares ISA
    • Robo Adviser
    • Sustainable Investing
    Phoebe Smith's Response

  • I am 52 with money languishing in a low savings account. Now I'm neurotic about entering into Stocks and Shares, due to seeing how many investors have exited the stock market thanks to Brexit, and with companies going bust etc. But I need to make my money work for me as my pension pot is low. Can I put the money into an Instant Access ISA and drip feed this into a Stocks and Shares ISA?

    Helen | London | 09/04/2019 | 2

    • Stocks and Shares ISA
    • Cash
    Lesley James's Response

  • I'm in my very early 20s, and earning well. I have no debts or dependants. I have a Stocks and Shares ISA, and am weighing up the pros and cons of a General Investment Account vs a Private Pension. What should I keep in mind?

    Cecily | Berkshire | 08/04/2019 | 4

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • GIA
    • Workplace Pension
    Tommy Watson's Response

  • I've got a Stock and Shares ISA with Moneybox. I recently invested a lump sum with them, and I'm making regular weekly investments. When I invested, the share price was quite high. Should I have drip fed money into the account rather than depositing a lump sum?

    Tim | West Midlands | 05/04/2019 | 1

    • Stocks and Shares ISA
    Mark Dampier's Response

  • Our 16 year old son has inherited a significant sum. He wants to go to Drama School and pursue a career in acting, which we know means he is likely to be low paid/short of cash. I wondered how best to help him organise his savings/investments to help fund him through drama school/the early years, whilst trying to discourage him from simply dipping into his capital?

    Mo | West Sussex | 04/04/2019 | 4

    • Stocks and Shares ISA
    • Junior ISA
    • Inheritance
    Pete Matthew's Response

  • I intend to retire in autumn, aged 60 and would like to leave my son and grandson as comfortable as possible when I'm gone. I have talked with several IFAs, but given my risk adverse nature, their fees seem to eat up most of the benefit they offer. Do IFAs normally bring sufficient benefit to low risk strategies, to make it worthwhile? Or am I better off cautiously investing myself, and saving the fees?

    Stephen | North Yorkshire | 01/04/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Catherine Morgan's Response

  • I am self employed (40) with no private pension, earning £50,000 a year. I have savings and can make a lump sum investment. I know nothing about Stocks or Shares. What is the best way forward for pension and tax reduction? Desperate Anna

    Anna | London | 25/03/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Holly Mackay's Response

  • We have £100,000 in Premium Bonds to invest. We need it as serious illness has changed our lives completely. We have been advised to invest in a Capital Investment Bond, but fees seem high to me - 0.3% and 1.7% management and on-going advice. I'm considering Wealthify or other online funds. Can you help?

    Melanie | London | 25/03/2019 | 3

    • Online Investment Platforms
    • Other
    Holly Mackay's Response

  • I have had a Hargreaves Lansdown Stocks & Shares ISA for the past 2+ years, divided into their Portfolio Plus Balanced Growth and in a mixture of shares I selected myself. While I am happy to keep the shares element, I don’t feel the managed portfolio is working for me and I could do better elsewhere. Where would you suggest I could invest for a better return? I am happy with balanced and some element of high risk. I’m 47, have two primary school age children, & live in central London. I also have a mortgage and a workplace pension.

    Jennifer | London | 20/03/2019 | 0

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • For the last 9 months I've drip fed just over £10,000 into a Moneyfarm Investment ISA... it has been a very volatile year as you know. Moneyfarm seem to have done a good job of protecting my capital... however I haven't really made much in the way of gains... If I wanted, would I be able to transfer the whole lot to another platform where the fees are lower? I know you're not allowed to give regulated advice - but I'm uncertain if I should transfer the whole lot in one go, or drip feed.

    Robert | UK | 14/03/2019 | 3

    • Stocks and Shares ISA
    • Robo Adviser
    Holly Mackay's Response

  • Can I use a Lifetime ISA if I am a first time buyer, but I will be getting a joint mortgage with someone who is not a first time buyer?

    Katie | Kent | 14/03/2019 | 10

    • Lifetime ISA
    • Mortgage
    Helena Wardle's Response

  • I am in my mid 20s & earning a regular salary. I have decent savings and am toying with the idea of Wahed Invest (I am looking for shariah compliant funds). I am also dabbling with the idea of property. If I have no financial commitments (living at home for next 2 yrs), is it worth using 90% of my savings for a house deposit for buy-to-let purposes? I am thinking this would reduce my loan to value?

    Zara | West Midlands | 12/03/2019 | 0

    • Lifetime ISA
    • Cash
    • Robo Adviser
    • Mortgage
    David Stone's Response

  • I have about £100 monthly extra I want to invest, but I am not sure if my ISAs represent good value. I thought I could put the money in a higher risk investment, as it is money I can invest over 5-10 years, and had thought Nutmeg might be a good option as I have little investment experience. Am I right in thinking I can only contribute to one Stocks & Shares ISA at a time in my name? I could just put more money into my existing ISAs. What do you think?

    Colin | Lothian | 11/03/2019 | 2

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • My 60 year old mum is not very financially literate and has has no private pension. She has approximately £900k to invest, from which she will need to draw down c.£40k a year for life. She is not very financially literate and would not be able to proactively manage the money herself. Would you favour an Independent Financial Adviser or a Robo Adviser for someone in her position? Thank you!

    Harry | Kent | 11/03/2019 | 1

    • Private Pension
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I am 47 and I would now like to open an investment ISA for growth for at least 10 years. I am tempted by the Vanguard LifeStrategy 80 due to the low fees and strong reputation. I would also consider investing in a couple of other Vanguard funds as well. Would this be advisable or relatively unnecessary, if I'm already investing in the LifeStrategy fund? I have also been looking with interest at Nutmeg, Wealthify, IG and AJ Bell Youinvest. Is there any provider that would stand above the others as most suitable in my circumstances?

    Matt | South Yorkshire | 11/03/2019 | 4

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • If my son increases his pension contribution, I have read it may affect the amount he can borrow on a mortgage. Is this correct? Should he take a SIPP out as well? Is there any advantage in maxing out his managed Nutmeg Lifetime ISA in the next financial year?

    Richard | Hertfordshire | 06/03/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Holly Mackay's Response

  • I’m 36 years old, earn £85k, and have about £40k savings in the bank, mainly in an old ISA that I’ve done nothing with. I have a five year old daughter and would like to put my savings somewhere clever so they start to do something useful by the time she starts at an independent secondary school and fees go through the roof. Any bright ideas please?

    Milly | Berkshire | 22/02/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Online Investment Platforms
    Catherine Morgan's Response

  • I recently came across your blog and it has been a great introduction to learning about my personal finances. I was wondering if you could recommend any additional resources (websites, books, online help) for beginners and that are tailored to the UK market. I am in my early 20's and I'm looking to further my knowledge of money, and foster a greater relationship with it. In addition to that, I'd like to know your opinions on how the possible outcomes of Brexit will affect the market and potential personal finance investments.

    Rita | London | 23/01/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Phoebe Smith's Response

  • With a SIPP in drawdown would a company like Netwealth whose investment management fees are of the order of .66% of the value of the portfolio, be a better option compared to companies like Hargreaves Lansdown or Investec? What are the relative benefits of Netwealth over the more traditional wealth managers?

    Steve | Lancashire | 22/01/2019 | 7

    • Private Pension
    • Robo Adviser
    • Online Investment Platforms
    Helena Wardle's Response

  • Hello, I really enjoy your website and find it useful and concise. My question is, what is meant by long term savings? I am 54, so what should I consider to be an appropriate time frame for any investment I make, that could supply the best results?

    Jennifer | Essex | 16/01/2019 | 11

    • Online Investment Platforms
    • Funds
    • Pension
    Anna Sofat's Response

  • I’m new to investing and in my late 30's. I'm actually stuck in a dilemma whether to invest using DIY platforms like Interactive Investor, A J Bell or Hargreaves Lansdown OR invest using robo advisors like Nutmeg, Moneyfarm or Pensionbee. I have compared the fees and they are not significantly different. Do robo advisers have a better return rate? I can dedicate some time to DIY investing but not a significant amount of time. Please advise. Thank you.

    Victor | Kent | 14/01/2019 | 1

    • Robo Adviser
    • Online Investment Platforms
    Phoebe Smith's Response

  • I’m a 20 something year old woman who’d like to learn more about investing. Do you have any books or reading material that gives a complete beginner a better understanding of how investing works?

    Precious | Surrey | 03/01/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • From my retirement I received a lump sum of money and a monthly pension. I have £100,000 that I do not need for the foreseeable future... One of my main concerns with Financial Advisers are their costs... All I want is simply to see this money grow to its potential, sensibly and above inflation... Therefore my next thoughts are Stocks and Shares ISAs... My only concerns here are the current Brexit problems - I saw the FTSE drop this past week. I cannot find any information out there to assist with my decision making if this is certainly a good time to invest... I am aware that I can place £20,000 for this year. Come April 2019 I place another £20,000 and so on until the £100,000 has been utilised. Do I have to place it into the same fund or can I choose another different fund with a different company?... Please can you help to ease some of this burden, which has proved an awful part of my retirement and made me frightened to spend any money.

    Katherine | Derbyshire | 02/01/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    • Robo Adviser
    • Online Investment Platforms
    • Workplace Pension
    Helena Wardle's Response

  • I often find that my monthly salary is spent on things I don't need or just saved up; without accumulating much. So what can I do with my money to make money? I am not expecting you to tell me where and when to invest but simply what to read, and I guess I really would like to know how you became an expert, where did you start? I feel like investment is something so big I can barely even touch it, and I would greatly appreciate any words of advice you could share with me.

    Beth | London | 07/12/2018 | 4

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I'm the sole carer for my chronically ill and elderly mum, as well as a full-time police officer. I have no other family apart from her. Due to mum's condition, and the fact that I'm exhausted performing both roles, the only option is to go part-time, as mum won't accept help from anyone else. To allow me to go part-time, I will need about £25,000 until March 2020 when I will be retiring. I’m confident of getting another job shortly thereafter. In January 2021, I will receive a commutation lump sum of about £50,000. I have a sizeable fund portfolio under an ISA wrapper with Hargreaves Lansdown. That is doing very well, so I don't really want to sell any of these funds and 'lend myself money' from that. My ideal funding solution would be a bond-type IOU agreement, where 'someone' lends me the money. Are you aware of a peer-to-peer site that could assist? Thanks

    Dave | Hertfordshire | 27/11/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    • Other
    Holly Mackay's Response

  • I’ve been investing in Nutmeg’s Risk 10 profile for three years which helped my deposit for my house. I am now wondering whether to use Nutmeg again, or should I use LifeStrategy for my £1000 per month? Is there a difference between Vanguard's LifeStrategy option and let’s say a well known robo adviser like Nutmeg? I am still a beginner and would like to keep things simple, but happy to take risk and prepared to leave my investments for a long time.

    Jordan | Surrey | 26/11/2018 | 19

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Phoebe Smith's Response

  • Do you have any recommendations for books that I can buy my 18 year old daughter for Xmas on the subject of pensions and investments so she can start to understand the subjects? She's young I know but I would like to get her started. Many thanks!

    Nicki | Devon | 15/11/2018 | 2

    • Robo Adviser
    • Online Investment Platforms
    • Other
    Catherine Morgan's Response

  • I was lucky enough to inherit a significant sum from my father... currently in Alliance trust platform in 10 investment trusts. They have delivered well in the last 20 years. But they are UK equity based. And highly risky. Do you offer a sanity check service for confused individuals like myself? I don’t know what to do...

    Paul | Berkshire | 12/11/2018 | 2

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I am 35 and working part time on a reasonable salary. I've recently taken out a Stocks & Shares ISA with Wealthify (from reading the recommendations on Boring Money) where I pay in £40 per month. However, I'm wondering if I should be doing more? Should I be diversifying and using more than just Wealthify? Or is it better to increase the amount into Wealthify?

    Holly | Sussex | 17/10/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    Lesley James's Response

  • I am 25 and starting to seriously financially plan out my future. I would really welcome a 'sense check' on my thinking as well as some help on which investment choices to make. My goals are: To invest for 15 years - my risk appetite is very high (i.e. I could afford to lose all my money). Goal 1 - More Important: To have an investment pot of £1,500,000. Goal 2 - Less Important: To be mortgage free. My plan is: 1) Open an annual Stocks and Shares ISA each of the next 15 years. 2) Open Share trading/dealing account. 3) Reduce my mortgage term to 6 years by 2025. I appreciate the above is a lot to go though, but I'd welcome any help and guidance.

    Mo | London | 15/10/2018 | 5

    • Stocks and Shares ISA
    • Shares
    • Online Investment Platforms
    • Funds
    • Other
    Holly Mackay's Response

  • I shall have £10k to invest shortly, and I want to use an actively managed portfolio in a quality company. How would you rate - Investec Click & Invest/True Potential Investor/Nutmeg on the basis of ROI/customer relationship/quality/risk factors etc? I would class myself as a mid-grade risk-taker/reasonably adventurous if appropriate, with a high quality company. I presently use Hargreaves Lansdown and Wealthify but feel the need to diversify. What do you recommend?

    Richard | Shropshire | 03/10/2018 | 1

    • Online Investment Platforms
    Holly Mackay's Response

  • The recent Metro article which Holly participated in has really inspired me and made me think that investing in shares is something which I would like to do. Unfortunately I am completely thrown about where to start. I would be grateful for any advice you could pass my way. Realistically, I would only have about 2k to invest, so any tips would be gratefully received.

    Sarah-Jane | London | 12/09/2018 | 3

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • Can I use the Help to Buy scheme to buy a house in Jamaica? Kind regards, Kishana

    Kishana | London | 11/09/2018 | 1

    • Lifetime ISA
    • Other
    • Mortgage
    Phoebe Smith's Response

  • Is there a reason you don’t list Saga in your Best Buys? Additionally, I have purchased a few investment trust shares but can’t work out how the dividends are paid. Scottish Mortgage is an example. I wasn't given an option to choose how to receive the dividends. It would be useful if you could provide some clarity on how investment trusts pay their dividends.

    Carl | Buckinghamshire | 07/09/2018 | 1

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • Any advice for two young people trying to get themselves a home? My girlfriend and I are saving for a house together. Currently house prices in our area are a ridiculous £300k. The max we can get from banks is about £220k, meaning somehow saving up a whopping £80k deposit. This would take us about 8 years (and house prices are increasing faster than we're saving!) That's not to mention solicitors fees, stamp duty, the cost of moving, furnishing the house, white goods, and any repairs or renovations. It all just seems impossible!!

    Joe | Buckinghamshire | 23/08/2018 | 0

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Kate Fitzpatrick's Response

  • Can you advise me on the best approach when looking to invest in a product that offers compound interest? I’m thinking about funds rather than bank accounts. I also have 4 different pensions on the go. Should I keep them separate to diversify the risk? Or consolidate them? How will these pensions be treated when I retire? Will they be considered in aggregate by the tax man?

    Craig | Clackmannanshire | 16/08/2018 | 1

    • Private Pension
    • Online Investment Platforms
    • Funds
    Helena Wardle's Response

  • I have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. I was planning to transfer the remaining one third to Charles Stanley Direct. However the recent platform price increases seem to put me in the worst position possible. After Charles Stanley Direct's fee increase, could I do better elsewhere?

    Gerry | Bedfordshire | 15/08/2018 | 7

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I'm 24 and would like to begin investing. Am I better off using a robo advisor such as Wealthify/Wealthsimple or a fund such as Vanguard LifeStrategy?

    Amanda | Greater London | 06/08/2018 | 7

    • Shares
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I have cash saved in ISAs and savings accounts - probably a 30% deposit on a property - first time buyer. I am at least 12 months away from getting a permanent job, so at least 12 months away from buying a property. What can I do with the cash in the meantime? Best just to leave it in cash for now, or invest a portion in stocks and shares ISAs?

    Malti | London | 25/07/2018 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Holly Mackay's Response

  • I am 73 and cautious. There are two areas that your advice would be helpful..what if you just spend thousands on buying the gold standard footsie companies like shell and the rest and keep them for five years and then cash them in ?

    DB | UK | 24/07/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    • Pension
    Holly's Response

  • I'm nearly 30 and looking to open a private ready made pension, and also an investment ISA for retirement funds or towards a property, but very unsure what risk level to choose (low to medium, or medium to high)? Any comments or advice welcome.

    Susan | West Midlands | 24/07/2018 | 2

    • Private Pension
    • Stocks and Shares ISA
    Cherry Reynard's Response

  • I have a Virgin Money stocks and shares ISA which I started in 2016 and pay £75 into a month. Can I take a new stocks and shares ISA with a new provider before the end of the tax year?

    Balwant | 29/05/2018 | 2

    • Lifetime ISA
    • Mortgage
    Helena Wardle, Certified Financial Planner's Response

  • Who offers the best Lifetime ISA for first time buyers?

    Genevieve | Yorkshire | 23/05/2018 | 3

    • Lifetime ISA
    • Mortgage
    Helena Wardle, Certified Financial Planner's Response

  • We have a portfolio of ISAs/PEPs worth around £250k, currently invested via Cofunds, managed by Chelsea and Bestinvest. I'm told this is quite an expensive option regarding platform charges. Are there better options?

    John | Berkshire | 08/05/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    Helena Wardle's Response

  • I am very lucky to have just received a gift which I want to invest for our retirement. My husband and I aim to retire in around five years. We have 11 more years of school fees to fund, then hopefully university fees for two after that. I've put together a plan for us - can you have a look and see if it makes sense?

    Fiona | UK | 18/01/2018 | 6

    • Private Pension
    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • We have four grandchildren (2 English living in UK, and 2 Irish living in Eire). We have decided to start savings plans for their futures. Their ages are 18yrs, 11yrs, 8yrs and 4yrs respectively. My age is 75yrs, and my wife is a little older. What should we do, please?

    John | Buckinghamshire | 01/01/2018 | 1

    • Junior ISA
    • Lifetime ISA
    • Shares
    • Funds
    • Inheritance
    Martin's Response

  • I am already receiving a pension from a final salary scheme and I am retired. I have a sum of money I want to invest. Can I start another pension as a saver and, if so, how much can I put in every year?

    Collette | Greater London | 25/11/2017 | 0

    • Private Pension
    • Online Investment Platforms
    Boring Money's Response

  • Have you a review on Halifax Stocks and Shares ISA?

    Moira | London | 21/10/2017 | 8

    • Stocks and Shares ISA
    Dr Richard Bradley's Response

  • My mother is 84 and has around £35,000 in cash, realised when she moved to a smaller house. She would like to invest it and draw income that would be slightly higher than the natural yield - say around £2,000. What is the best vehicle for that please?

    Ed | Sussex | 18/09/2017 | 4

    • Stocks and Shares ISA
    • Cash
    Boring Money's Response

  • I am confused about index funds, e.g. Vanguard Equity fund. Do they track an index or include the yield? In the case of Vanguard, their low cost is attractive but their portfolio is made up of other Vanguard funds. I assume these probably each carry a fee structure - is this correct?

    Robin | Gloucestershire | 03/09/2018 | 0

    • Online Investment Platforms
    • Funds
    Boring Money's Response

  • I've got £20,000 from an endowment policy (astonishing, I know), and I'm looking into how best to invest to get a reasonable return without excessive risk. Any thoughts much appreciated!!

    Penny | Peterborough | 09/08/2018 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    • Life Insurance
    Boring Money's Response

  • I use H&L and although they are a bit 'plumy' on the phone I quite like their website and the costs are OK. So I was thinking of H&L for [my son]. I would be telling him to open these two funds and regularly invest and forget about them for 10 years!

    R | Greater London | 29/05/2018 | 1

    • Lifetime ISA
    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • What is the Help to Buy ISA and how does it work?

    Dylan | Greater London | 07/09/2017 | 0

    • Lifetime ISA
    • Other
    • Mortgage
    Holly Mackay's Response

  • How risky is a Stocks and Shares ISA?

    Alexandra | Greater London | 06/09/2017 | 3

    • Stocks and Shares ISA
    Holly Mackay's Response

  • Should I be even thinking about the stock market?

    Lysa | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Shares
    Holly Mackay's Response

  • Pensions vs ISA - which one is best?

    Roderick | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    Holly Mackay's Response

  • Hi, I am 67 years old and I want to know the best way to invest £10,000 for growth rather than income. I would like to do this online and to be able to save money on fees.

    Rohan | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

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