Need ideas for what to buy for my ISA please


#1

I am pretty new to investment trusts. I only bought my first two Ranger and Woodford this year.

I have Cash ISAs that I now want to invest in investment trusts. Also I want to save £500 per month in to my ISA. I was thinking I might wait and every two or maybe three months I’d invest it in to a trust to save on the buying cost. I was thinking of doing it with ATS, the Alliance Trust platform. They charge £12.50 to buy a new trust.

Love to get some feedback and advice from you guys :smiley_cat:


#2

Is this for a long term investment @galestone ?

How do you feel about risk? Where would you place yourself on a scale of 1-1- if 1 is no risk and 10 is high risk?

Are you investing for a particular purpose, saving for something?


#3

Oh, I had to ponder on those questions @alexbarr.

I think I’d go for 6-7 in terms of risk.

I’m investing for more than one thing. I have young kids, 3 of them and I hope to help them with Uni fees when they get older. Also, I only work part time now but my husband is full time. I see this as helping our pension think when I retire but that wont be for 30-40 years away.

Can’t say I won’t dip in to it at some point though :dolphin:


#4

If you can invest for the long term put some in Biotech, and tech funds or trusts and some in EM.

I like Witan and BACIT. Witan is a cheap multi manager with good performance. See the review on here or on Citywire. Bacit donates 1% to cancer charities but doesn’t charge a management fee. It’s got amazing managers doing it for free for the benefit of charity. Many of the managers aren’t available to ordinary investors like you and me.


#5

For your regular savings have you considered an investment trust savings plan from Aberdeen/Baillie Gifford/Witan?

I mention because they are incredibly cheap and by saving regularly you get the benefit of something called pound-cost-averaging. This is where you smooth out the volatility in the market by buying high and low on a month to month basis, therefore benefiting from a more stable overall price.


#6

I’d buy these: Finsbury Growth and Income Trust FGT, Law Debenture Trust LWDB, Murray International Trust MYI. FGT is a UK trust run by Nick Train, a manager with a superb track record; LWDB is classed as global (but is 70%ish UK) and is more income-focused; MYI is truly international and has a lot in emerging markets. The latter hasn’t done very well these past few years but the long-term record is very good. I hold all 3.

Pauls’ advice above is very good - look at the Baillie Gifford and Aberdeen saving schemes, they are very economical for regular monthly purchases of their trusts.


#7

That’s pretty good advice you’ve received. I agree with both @pauls and @rogerdecrecy.

I forgot about Law Debenture but it is a good trust. Finsbury Growth and Income I won and it has been a great performer for a very long time.

You don’t say how much your lump some is. Be interested to know because it’ll limit how many different trusts you should buy.


#8

I’m fairly new to investment trusts but the one that introduced me to them was Scottish Mortgage. It’s a big global trust which invests a lot in technology, a lot in the USA|.

It wont let me upload because I’m a new user but here a link to stats on AIC:
http://www.theaic.co.uk/companydata/320/portfolio
.


#9

Gosh thanks for all the replies and helpful suggestions.
@pauls I will take a look at the savings plans, they’re new to me.

@rogerdecrecy Thanks for the suggestions, I’ll take a look at them though I’ve had a look at Finsbury already and it looks great.

@rocco I have £17,000 from Cash ISAs to invest. Thanks for the Scottish Mortgage suggestion, it looks good and it doesn’t appear to have anything to do with mortgages. :tulip:


#10

I’ve just been skim reading the Montanaro European article. They make quite a convincing case for it…


#11

Going for both Ranger and Woodford for first investments does look like a bit of a leap of faith. They’re the kind of investment that I’d look to hold as smaller proportions of a larger established portfolio. But they’re there now! And the Ranger fund is probably more suited to an income requirement rather than growth with most - if not all - of their return being in the form of income with little or no scope for asset growth.

Howver, with £500 per month being invested in any of the other trusts mentioned by the other posters then those two should become more balanced.


#12

Thanks all. I am still looking at the investment trust plans/saving schemes.

I like the Finsbury Growth Trust and I like Witan and Bacit too.

Decisions, decisions. I will report back when I know what I’m doing.

@arkwelder I bought Ranger because of the dividend. It’s so high (hopefully). I compared it to my Cash ISA (I know I’m not supposed to do that but hey).

Although I’m new to investment trusts I have owned investment funds before.

Enjoying my journey so far :grinning:


#13

They are pretty good suggestions. I like posts like this because I can steal away ideas form guys who have the time to do some research :smiley: