Last week we looked at choosing the best funds for your ISA and the key points investors need to know. In this post we'll continue with this important subject and focus on identifying funds with real growth potential.
How do you choose the best funds for your Stocks and Shares ISA? Deciding which investment funds you want in your ISA portfolio can be a challenging and time consuming activity. Fidelity has over 1200 funds to choose from and some providers have an even larger range, so it’s no surprise that it’s extremely easy to feel overwhelmed by too much choice.
Albert Einstein famously said, “The most powerful force in the universe is compound interest.” Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest.
Most investors seek better ISA and SIPP returns. The reason why so many investors desire higher returns is because unless they achieve good growth, they may undershoot their long-term investment aims. Missing key targets could result in them being forced to downgrade their lifestyle upon reaching retirement; a scenario many investors find completely unpalatable.
Most investors with a life expectancy of 20 years or more are likely to need at least some ISA growth. Without risk, you can't get growth. And without growth, your portfolio can be ravaged overtime by withdrawals and inflation. To help your portfolio survive the long haul, it's likely that you'll need to hold some portion of your ISA portfolio in stocks most of the time. You can do that by buying quality growth funds and holding them over the long-term.
I’ve been investing in Stocks & Shares since 1997 and since 1998 I’ve always added the full years ISA allowance. I’m fortunate to be one of the few investors that have outperformed the FTSE 100 over the long-term*. In a recent three year period** I’ve made an average yearly gain of 17% compared to the FTSE 100’s 7.9%.
In this post we'll examine three major investment industry flaws, their implications for investors and how you can avoid them.
ISACO are ISA and SIPP investment specialists. We offer a personal investment service that allows you to find out where an expert invests. You’re informed throughout the year what funds a star-performing investor currently owns, when he’s buying and when he’s moving into the safe harbour of cash – helping you enjoy more control, manage your portfolio more effectively and benefit from the potential for outstanding long-term returns.