where to invest money in a shares ISA?

There are two types of stock & share ISA. There is the one that is set up with different shares and managed by the fund manager, bit like a unit trust but ISA'd. Usually expensive management fees and poor performance. Then there is the one where you set up an ISA account with a stockbroker and buy shares within that ISA. In fact you could buy a FTSE100 ETF to put into that ISA, which could be the cheapest way.

You should be putting the maximum amount in each year to make this viable (and better if you are a high rate taxpayer.

The savings on tax for a standard rate taxpayer on dividends is negligible and you are not likely to make £10100 CGT anyway, so you could be paying management fees for nothing. Check this out thoroughly before investing.

Look for stocks and shares ISAs which can be bought from a fund supermarket. These are often cheaper than buying direct from an investment group and give you more choice. Most brokers which offer fund supermarkets also provide investment ideas and reviews to help you make your decisions.

Disclaimer:

The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk/

Danny Cox, Certified Financial Planner, Hargreaves Lansdown, www.H-L.co.uk

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