How do I do it?

By THIS IS MONEY
Updated:

 

I am a first time investor and would like to invest some money in Fidelity and Framlington ISAs. How do I do this and when is the correct time to cash them in? R.L. Warrington

Justin Modray from independent financial advisers Chase de Vere says: As long as you are over 18-years-old and a UK resident you can invest in an ISA.

The simplest option is to go directly to the ISA provider, in this case Fidelity or Framlington. But you can cut your costs by going through a discount broker. They will usually receive a commission payment by the ISA provider but pass some of this back to you. If you decide you want initial and ongoing advice, you could consider contacting an independent financial adviser. They will keep the commission to pay for their service but the charges will still be the same as if you went directly to the ISA provider.

Whichever route you choose, you simply need to complete the relevant ISA application form and write out a cheque as payment. These must reach the ISA provider by 5th April at the very latest.

You face a complication in that you want to invest with two different ISA providers - Fidelity and Framlington. But ISA regulations only allow you to have one stocks and shares ISA manager for the money you put into your stocks and shares ISA each tax year.

You can invest in both this tax year but to do so you will have to set up a Self-Select ISA with an ISA provider. These are generally provided by stockbrokers rather than fund management groups and allow you to hold different shares or funds from fund management groups under your ISA umbrella. But this will increase your charges so your best bet might be to invest via Fidelity this tax year and Framlington next - or vice versa.

Finally you need to choose either a mini or maxi ISA. As a simple rule of thumb, if you do have not already taken out a mini ISA this tax year, and you are planning to invest between £3,000 and £7,000 in the stocks and shares go for a maxi. Otherwise stick to a mini. If you take out a maxi ISA you cannot take out a mini cash ISA this tax year,

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