Jump to content
House Price Crash Forum
Sign in to follow this  
CrashInHand

Stocks & Shares Isa - Index Linked Guilts - Help

Recommended Posts

So what I'm looking for is an easy guide to setting up a self-managed stocks and shares ISA and getting some of those Index linked guilts inside. Do I need to by an index linked fund ETF to do this?

This is a long term investment I'm not looking to trade the guilts, just get an RPI + return over 25ish years - probably with an initial input of 3.6k this financial year and potentially adding to that investment in later years. I realise if RPI falls this may be a bad investment I will not be putting all my eggs in this one.

Would rather not be paying some fund manager/ yearly on the ISA either if possible.

Thanks for any help.

Edited by CrashInHand

Share this post


Link to post
Share on other sites

Most self select ISAs have a small annual management charge - typically around £10-£20 per year.

Gilts are bought and sold just like shares - except, you can buy fractions of a gilt (you can't buy a fraction of a share).

Gilts aren't traded on the main stock exchange, but are traded on other exchanges which most online budget brokers have access to - you just give the broker the code number (ISIN) and that's it.

For example, if you want to buy "1 7/8% Index linked treasury gilt 2022", you'd simply enter its ISIN number: GB00B1Z5HQ14 as the share code. Complete list available here.

If you don't know which gilt to buy, then you can buy an ETF e.g. INXG (which contains a mixture of different index linked gilts, so you avoid the risk that a particular duration of gilt does poorly). The catch with buying an ETF is that there is a small management fee - in the case of INXG it's 0.25% per year. On the plus side, if you buy a single gilt - you take a risk on the duration - you can hedge this by buying multiple gilts - but you increase your transaction costs.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.