I wish to invest in both stocks and funds within an ISA. However the fund supermarkets all seem to charge an annual fee even on stocks. Yet there are stock trading isa accounts that have no fee.

So I really want to be able to use 2 accounts - one for funds, one for stocks. Unless there is an account which is genuinely fairer?

I guess the only way is to rotate, year on year off, one year is stocks year, and one year is fund year?

  • I couldn't resist - There is arguably no sane way to invest in individual stocks - if you haven't used your ISA allowance - as a tracker fund will outperform most individual stocks picked by most individuals most of the time ;)
    – CodeMonkey
    Commented Jul 3, 2018 at 13:26

2 Answers 2


You could use a stock-only ISA and invest in Exchange Traded Funds (ETFs). ETFs are managed mutual funds that trade on open exchanges in the same manner as stocks.

This changes the specific fund options you have open to you, but there are so many ETFs at this point that any sector you want to invest in is almost certainly represented.

  • Yup ok fair enough. I also realised you can transfer previous years cash isa into stocks, so i can use that to up my investment options. (and get a better return on that money)
    – Codek
    Commented Jul 4, 2014 at 12:18
  • So one question @Adam Wood, (hmm how to do name links?) are there any equivalent of "multi manager" funds that are ETFs? i.e. something like this: hl.co.uk/funds/fund-discounts,-prices--and--factsheets/…
    – Codek
    Commented Jul 10, 2014 at 6:53
  • Sure. There is as much variety in ETFs as in regular mutual funds. Though that's an oddly specific feature to bring up. Commented Jul 17, 2014 at 1:57
  • OK Thats interesting. I got the impression ( although how true or not ) that the multi manager funds are a good way to spread risk on a long term investment. Kind of a quick and easy way to build a balanced portfolio. And "safer" or perceived to be anyway.
    – Codek
    Commented Jul 17, 2014 at 5:37
  • 1
    You probably got that impression from mutual fund advertising. The right way to spread risk is to think about asset allocation relative to your current situation (age, risk tolerance, earning potential, etc), and then select a mix of funds that make sense for your allocation and/or general sense of the world. One fund is one fund, whether it's sold as "multi-manager" or not. Commented Jul 17, 2014 at 12:44

A lot of ISA's allow both shares and funds as well as gilts, Hargreaves Lansdown comes to mind as does the Alliance Trust.

Some penalise (charging wise) securities vs UT (unit trusts) funds but in that case just go for a low cost IT (Investment Trust) ISA and hold individual shares as well as pooled investments in the Big IT's.

I think you might have to be an "approved investor" to buy gilts.

  • Yes, but Hargreaves charge 0.45%, which is 0.45% i can save if i put those stocks in a normal no frills shares account.
    – Codek
    Commented Jul 15, 2014 at 15:13
  • @Codek yes H&L do dinged for being expensive Alliance Trust might be a better bet then.
    – Pepone
    Commented Jul 15, 2014 at 23:22

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