Ask the Expert: What should I know to set up a stocks and shares ISA?
PUBLISHED: 15:59 08 June 2018 | UPDATED: 15:59 08 June 2018
Q I’ve always invested in ISAs and have normally put my money into deposit accounts with banks. I’d like to start investing in stocks and shares in my ISA but how do I choose what to put in it?
Answer from Almary Green managing director Carl Lamb:
“Investing in a stocks and shares ISA is relatively straightforward but you must make sure you understand what you are taking on. A cash ISA provides you with an agreed rate of interest on money you’ve deposited, whereas with a stocks and shares ISA, your returns are dependent on the value of the funds in your ISA and there is a risk you might make smaller gains or lose money.
The first thing to ensure when investing in a stocks and shares ISA is that your ISA portfolio is aligned with your risk profile. Before deciding on the funds to invest in, you will need to decide which provider to use as the platform for your ISA portfolio. Different platforms have different charges for administering your ISA, so it is important to understand these. It’s also important to remember there will be management charges for the funds, as well as charges when you buy or sell assets.
You can put a stocks and shares ISA together yourself but, unless you are knowledgeable, taking advice is a good idea.”