Stocks and Shares ISA question
Discussion
Opening a couple of ISAs over the coming weeks and am going to go the stocks and shares route.
However, I'm slightly confused. Can a single ISA hold 'funds' and individually selected shares?
I'm looking at going through Fidelity at the moment, and it seems they offer two kinds of S&S ISAs - one for funds and another for shares.
As an aside - are Fidelity ok?
However, I'm slightly confused. Can a single ISA hold 'funds' and individually selected shares?
I'm looking at going through Fidelity at the moment, and it seems they offer two kinds of S&S ISAs - one for funds and another for shares.
As an aside - are Fidelity ok?
Quite a few S&S ISA's include both self-trade elements for individual shares as well as being able to include various funds (pretty much all the major players will allow this).
One thing from a self-trade perspective that I have found out (much to my annoyance) is that some do not allow dividends to be reimbursed, only paid out in cash, which has a large impact on future long-term growth...so check the
One thing from a self-trade perspective that I have found out (much to my annoyance) is that some do not allow dividends to be reimbursed, only paid out in cash, which has a large impact on future long-term growth...so check the
MEVILAZY said:
One thing from a self-trade perspective that I have found out (much to my annoyance) is that some do not allow dividends to be reimbursed, only paid out in cash, which has a large impact on future long-term growth...so check the
Couldn't you just hold the share in accumulation form (if available) to avoid this problem? Admittedly I prefer income re-invested rather than 'rolled up', but if accumulation shares are available at least the growth is retained within the wrapper...For the stock and shares part of the ISA, each year can you choose to set up/invest in a different fund with a different provider? The whole thing seems so damn vague to me. I just played it safe (hopefully) going for a 5 year ftse tracker with Barclays; the financial planner said I can’t add to this fund each year.
If you open a stocks and shares ISA with a Unit Trust manager such as Fidelity and you invest in their funds, you can select the accumulation units which will in effect roll up your dividends in that fund that you purchased. You can buy and sell shares/funds within the ISA plan like you would with a small portfolio subject to the service offered by the ISA manager.
These ISAs are portable so you can transfer the ISA plan to another ISA manager any time you like but beware the charges. Do not encash the plan - make sure you transfer it to protect the ISA status otherwise if you liquidate, get your cash back, you have then lost that ISA allowance for that year.
HTH.
JB
These ISAs are portable so you can transfer the ISA plan to another ISA manager any time you like but beware the charges. Do not encash the plan - make sure you transfer it to protect the ISA status otherwise if you liquidate, get your cash back, you have then lost that ISA allowance for that year.
HTH.
JB
I went through all this 2 years ago when the market was at rock bottom, in the end I couldnt be bothered and went to the Halifax (risky at the time) and spent 45 mins with a nice guy going through options for an ISA Stocks and shares investor and risk options etc. We decided on the funds and I set up the payments £600 a month I think and Ive just totted it up and i am 23% up on what I have put in tax free in 21 months which is good enough for me and I didnt burn any midnight oil.
Im keeping with it for 10/11 as I see the market staying robust (!) for at least another year but if needs must I can convert it to a cash ISA earning sod all
DS
Im keeping with it for 10/11 as I see the market staying robust (!) for at least another year but if needs must I can convert it to a cash ISA earning sod all
DS
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