Your investment options - ISAs [3 min read]
Investing doesn’t have to be just for those with lots of money. There are many free websites with fund and stock market information to get you started. For example, Hargreaves Lansdown gives you an overview of fund performance over certain periods, reviews of specific funds in sectors and explains how these sectors work. Another useful site is Interactive Investor, which has beginner's guides on different investments and shows the top 10 funds, bottom 10 funds and the 10 most traded funds on its website monthly.
Everyone in the UK has a £20,000 annual ISA allowance, which you can use to invest in stocks and shares or to save in a cash ISA (or a mix of the two). Investing or saving into an ISA product means that it is protected from tax so you will not have to pay tax on the profit you make.
Do be aware of the fees with stocks and shares investments in general. This may include platform charges, fund manager charges, costs to buy or sell a fund on a platform and in some cases, transfer platform fees. If you'd like a professional to make investment decisions for you based on your preferences, Evestor stands out as the cheapest long-term platform. It has one of the lowest investment charges at a max of 0.13% on top of a platform fee of 0.35%. For those of you who prefer making your own investment decisions with the option of having some help, Cavendish Online offers 12 different portfolios with three risk options of low, medium and high and is one of the cheapest on the market. If you already know which funds you want to invest in, it's also probably cheaper to go direct, eg Vanguard have lots of funds and it's almost always cheaper to buy direct with them.
Annual platform charge: 0.25% for under £200,000
Fund manager charge example: 0.15% (mid-risk tracker portfolio)
Fund dealing: £0
Min ISA deposit: £0
Transfer out fee: £0
Account closure fee: £0
Annual platform charge: 0.35% (0.25% Evestor fee + 0.10% product fee)
Annual transaction costs: 0.04%
Annual fund manager charges: 0.13% max
Min ISA deposit: £1
Transfer out fee: £0