A couple of weeks back, I wrote a post stating that I was not very happy with my index fund portfolio managed by Nutmeg. The reason was simple, over the time frame I have had a portfolio with Nutmeg, I received returns of 10%. On the other hand, by managing money myself and buying my own individual stocks, I have received a far higher return of 27%.
Apart from getting better returns by investing in solid dividend payers, there are other reasons why I want to move money from a portfolio of index funds and ETFs. I will write a post about this soon so keep a look out. The main points basically revolve around overvalued markets, controlling my own money and higher fees.
Once I decided to move money from one stocks and shares ISA to another, here is what I did in sequential order.
- Look for any exit fees from existing provider (Nutmeg). Luckily in this case, there were no exit charges as it I was transferring fully in cash.
- Look around different platforms such as Hargreaves Lansdown, III, TD Direct Investing and Youinvest to see which had the best deals/promotion for the transfer of my money to them. The latter, which is my current stocks and shares ISA provider, turned out to have the best combination of deals/lower fees and saved me the hassle of opening a new account.
- I went to the Youinvest website and searched for for the stocks and shares ISA transfer form. Once printed out, it was relatively straight forward to complete as I was transferring in cash.
The other option apart from transferring from one provider to another provider in cash is to transfer all existing holdings or do a partial cash/shares transfer. Note that transferring your current holdings usually commands a fee per line of stock. So ask your ISA provider about any exit charges.
- I posted out my form on Tuesday 27 September.
- I received an email from Youinvest on Thursday 29 September saying that they got my form and will make the transfer. All I had to do know is sit and wait.
- On Monday 16 October, the money hit my account.
All in all moving money from one ISA account to another is a simple process with minimal effort from the individuals point of view. So if you are stuck with a provider that you don’t like or charges higher fees, it is always worthwhile looking at the possibilities of moving your funds, whether in cash or in stock, to a different provider. Happy investing!