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Two core funds for ISAs

| 3 March 2015 | A A A
Two core funds for ISAs

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

As Britain approaches its seventh year of record low interest rates, the prospect of higher returns from more risky assets looks increasingly appealing to some investors. Furthermore, improvements made to ISAs last year make them more attractive than ever.

Free Guide to ISAs - includes all the latest rule changes

As such there has been a surge of interest in Stocks & Shares ISAs. To help potential investors get started, I have chosen two funds that could make a great choice for the core of an ISA portfolio. You can also read more about our Vantage Stocks & Shares ISA which is designed for investors who are happy to make their own investment decisions.

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

This research article is not a personal recommendation to invest and it is important to remember that unlike cash, which is guaranteed, stock market investments can fall as well as rise in value so investors could get back less than they invest. Investments should therefore be held for the long term. Please read the fund factsheets and Key Investor Information Documents for more details on the funds.

HL Multi-Manager UK Growth

There are a number of reasons to be positive on the UK market at present. Economic growth is strong compared with other developed nations, consumer spending is increasing and business investment is picking up. In this environment, well-managed companies could deliver strong earnings growth.

UK funds attract huge investment each year. This popularity means that fund management companies put significant resource behind these funds. As a result this sector attracts some of the best investment talent in the UK. Investors therefore have a huge pool of exceptional fund managers from which to choose, and the decision proves difficult for many.

This is where we think our multi-manager approach excels - we can cherry-pick the best managers and blend them together in one diversified investment, and continually monitor the portfolio making changes on investors' behalf. The recently launched HL Multi-Manager UK Growth Fund aims to offer a one-stop-shop of the best managers from across the UK All Companies, UK Equity Income and UK Smaller Companies sectors, and in our view it could make a great core UK growth fund for an ISA.

There is an annual charge to hold funds in the Vantage ISA of 0.45% p.a., in addition to the fund's ongoing charge detailed below. More on charges »

  • Net Initial Charge: 0%
  • Ongoing charge (OCF/TER): 1.49% p.a.

HL Multi-Manager UK Growth factsheet

HL Multi-Manager UK Growth Fund Key Features

Please note the HL Multi-Manager UK Growth fund is managed by our sister company Hargreaves Lansdown Fund Managers.

Free Guide to ISAs

Free Guide to ISAs

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Legal & General UK Index

Alternatively, investors who are looking to invest fully in the UK stock market could consider investing in an index tracker such as the Legal & General UK Index Fund.

It tracks the performance of the FTSE All Share Index, which contains over 600 UK companies. This means whichever part of the market is performing well at any given time, the fund will have some exposure. We have chosen this fund because it has a good record of tracking the index closely in the past, and it has an extremely low ongoing fund charge of just 0.06% when you invest through Hargreaves Lansdown. We believe it could make an excellent choice for broad UK stock market exposure.

There is an annual charge to hold funds in the Vantage ISA of 0.45% p.a., in addition to the fund's ongoing charge detailed below. More on charges »

  • Net Initial Charge: 0%
  • Ongoing charge (OCF/TER): 0.10% p.a.
  • Ongoing saving: 0.04% p.a.
  • Net ongoing charge: 0.06% p.a.

Legal & General UK Index factsheet

Legal & General UK Index Key Investor Information Document

How to open a Stocks & Shares ISA in under five minutes

Most of our clients open their Vantage ISAs with a debit card, either over the telephone or online. We've made the process as simple as possible. For those happy making their own investment decisions it should take no more than five minutes. You can read more about our Vantage Stocks & Shares ISA. Before applying please read our Terms & Conditions, Key Features, and the Key Investor Information Documents for any funds under consideration.

All stock market investments should be held for the longer term and investors could get back less than they invest. Tax rules can change and the value of any shelters will depend on individual circumstances. This article is not personal advice, those unsure about the suitability of an investment for their circumstances should contact us for advice.

Any questions about ISAs? Please do not hesitate to call us on 0117 900 9000, alternatively claim your Guide to ISAs.