INVESTMENT CLINIC

I’VE never invested before, but I want to transfer £20,000 from my cash Isa into a stocks and shares Isa. However, I don’t want all my money in one fund. How can I do this if you can pay into only one stocks and shares Isa each year? R. B., Southend-on-Sea, Essex. IT SEEMS you’re a little confused about how stocks and shares Isas work. While you’re right that you can pay into only one stocks and shares Isa a year, that Isa can have as many funds in it as you want.

Think of it as a shopping basket filled with funds that shields your profits from the taxman. But before you worry about choosing funds, you need to find a good fund supermarket that offers Isas.

The most important thing to consider is fees. But also take into account customer service and any helpful tools the website offers. Check how much you have to pay each year to the fund supermarket. There may also be fees for trading funds and some penalise you if you want to leave in the future.

Look at the table on this page to compare costs. The overall charge will vary depending on which fund you select on these websites. For a full rundown of fund supermarkets, visit thisismoney.co.uk/platforms.

Split your savings between different regions and types of company to spread risk. Don’t spread your cash too thinly or it will be difficult to keep track of your investments: five is a sensible amount for a £20,000 investment.

Some brokers, such as Hargreaves Lansdown, offer ready-made portfolios tailored to the risk you want to take. If you’re nervous about picking your own investments, see thisismoney.co.uk/find-an-adviser or call 0800 023 6868.

If you want to do things yourself, study a manager’s history. Regularly review your portfolio and invest for at least five years.

SEND your questions to: Investment Clinic, Money Mail, Northcliffe House, London, W8 5TT.