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Guidance on investment funds
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hyposmurf
Posts: 575 Forumite
Im pondering whether to invest some savings I have in investment funds.I'm just going to use a small portion of my savings and see what happens, that way if the funds dont do to well I havent gambled all my savings away.I'd like to put £1000 in two seperate emerging market funds with either HSBC or Templeton.As far as I know I fill the form out with the investment fund name and fund details and I receive receipt.I'
I should be able to watch this investment online, but oher than HSBC and Templeton where can I get a detailed up to date look at the different funds perfomances?I've looked onvista.com but my german isnt that spot on.
Are these funds exempt from tax?
How long do they take to sell?
I understand they are about 1% to sell for HSBC what other charges are there?
Is it worth buying the fund and then a year later sell them and buy them again so that the interest you made is re-invested?
How much of a dip you take in your fund before you pull out?
I should be able to watch this investment online, but oher than HSBC and Templeton where can I get a detailed up to date look at the different funds perfomances?I've looked onvista.com but my german isnt that spot on.
Are these funds exempt from tax?
How long do they take to sell?
I understand they are about 1% to sell for HSBC what other charges are there?
Is it worth buying the fund and then a year later sell them and buy them again so that the interest you made is re-invested?
How much of a dip you take in your fund before you pull out?
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I've also heard that the shares recently havent being doing that well, was this just the ftse?Does this not concern the emerging markets as much in china,brazil,russia etc?I was also looking at investing in eastern europe or maybe turkey.Sound a little stupid at this time?I understand this just advice on here and not legally binding etc, I'm just after some ideas from other members to get a feel for the markets I'm likely to be investing in.Where do you look for info on how certain markets are doing?I realise also that some people have vested interest in certain markets.0
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Im pondering whether to invest some savings I have in investment funds.I'm just going to use a small portion of my savings and see what happens, that way if the funds dont do to well I havent gambled all my savings away.I'd like to put £1000 in two seperate emerging market funds with either HSBC or Templeton.As far as I know I fill the form out with the investment fund name and fund details and I receive receipt.I'
I should be able to watch this investment online, but oher than HSBC and Templeton where can I get a detailed up to date look at the different funds perfomances?I've looked onvista.com but my german isnt that spot on.
TrustNet and CityWire both have fairly good fund-tracking statistics on their sites, as does the Financial Times website.Are these funds exempt from tax?
No, you pay tax on any dividends and when you come to sell your holding, you may be eligible to pay Capital Gains Tax.How long do they take to sell?
Where I'm invested, about a day or two.I understand they are about 1% to sell for HSBC what other charges are there?
When you buy a fund, you will notice that the quoted price is usually a spread, which indicates the entry price to the fund. This can be as high as 5-6% from what I've seen. Every year there is also an annual management charge of anything up to just under 2% (again, from what I've seen). I'm not sure why there would be a 1% fee on top of all this to sell your holding, it sounds a little harsh to me to charge you an entry fee, then an additional exit fee.
In any case, if you know where you want to invest your money in terms of funds, you can go to Hargreaves Lansdown instead of the various other options and get most, if not all, of the entry fee removed along with some of the annual fee. As far as I can tell, there's no exit fee for them either, so by going there you might save yourself up to about 7% of your initial capital.Is it worth buying the fund and then a year later sell them and buy them again so that the interest you made is re-invested?
You should usually have the option of either getting income or accumulation units for your fund. If you're looking for long-term capital growth, then accumulation units mean that there is no dividend for you to reinvest, only growth of your initial investment. In which case there would be no point in selling all your holdings and re-buying, as that might well lose you money if the prices shift unfavourably. In any case, I'm not sure I see the point of selling the whole holding even if you did want to invest your dividends...How much of a dip you take in your fund before you pull out?
Up to you really. This question is actually one which defines your risk profile. The funds you've picked are extremely volatile though (emerging markets being what they are), so if you're put off by the possibility of a 50% drop in value, you might want to reconsider your investment choice!I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Don't have much time to post ATM but I suggest you read Martin's article HERE
about buying funds. If you use a discount broker like HL you'll almost always save a lot on fees. Also check out the other broker sites as there are some research tools available free. Use your ISA allowance to make the funds tax free.
Another good website to understand investing is INACADAMY.
The markets have recently been volatile across the world and not just in the UK, it might be better at the mo, even if you have the money, to feed it in on a monthly basis. Emerging markets are high risk - high rewards if timed right and you have patience when they go down, big loses if not - how would you feel if your £1K become £600 overnight?
Not trying to be patronising, and I don't claim any great investment expertise, but right now you're planning to learn to swim in the deep end with your winter clothes on! Read up on it first then if you're happy to take the plunge good luck but remember that spreading your risk usually works better over the longer term.0 -
I've held off until now, but am now looking to buy funds.I am currently in favour of Templeton's BRIC fund A(yd) GBP.One thing I find is that when I have found a emerging market BRIC fund is that its usually in $$ or another currency.I'm sure I'd be better off trading in my own currency than dollars with the current market also that it would mean there wouldnt be any exchnage costs.Am I correct?Do you know of any other GBO BRIC funds?Ive looked at HSBC but they dont have BRIC GBP funds.Does this appear to be a unwise time to invest?I've held off until now with the problems over the last month, but am getting tempted to now buy funds.Any more advice would be appreciated thanks0
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Did you actually go to the sites the previous posters have recommended? For instance on the Trustnet site you could have found this http://www.trustnet.co.uk/ut/funds/perf.asp?sort=5&ss=0&txts=&txtss=&columns=&page=0&booIMA=1®1=all&sec=all&ima=glblemer&unit=all&type=all&gobutton=Go
which shows all the funds in the Global Emerging markets sector. Note the Allianz RCM BRIC Stars fund which is the sort of fund you are specifically looking for.0 -
Templeton's BRIC fund is a SICAV and will be available on any fund supermarket that offers SICAVs.I've held off until now with the problems over the last month,
Bet you regret that now.
I do have to wonder if your risk profile is suited to emerging market funds though if you think a little wobble like we just had was enough to hold you back from investing.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Use a discount broker such as https://www.h-l.co.uk rather then direct with HSBC
More importantly, read, read, read, read, and then go away read some more. Use your own set of metrics to make balanced choices, metrics dont necessarily need to be mathematical.0 -
Use a discount broker such as www.h-l.co.uk rather then direct with HSBC
More importantly, read, read, read, read, and then go away read some more. Use your own set of metrics to make balanced choices, metrics dont necessarily need to be mathematical.
I was thinking of filling out form for say HSBC for the fund I wish to invest in,not looking to go via one of their advisers.Would this approach be generally more costly than going via a discount broker?I have yet to read through all the info.There seems to be alot to digest on the net.thanks to you all.0 -
Well I cant find a HSBC emerging markets fund in either HSBC or hargreaves lansdown so Ill presume your talking about the JPM emerging markets.
From HSBC info youll pay
1% initial charge, 1.5% management charge and 0.26% additional charge
Through h-l discount broker youll pay no initial charge and only a 1.5% management charge.
http://www.h-l.co.uk/fund_research/security_details/sedol/3088155.hl0 -
Thanks for that Ill go of and read all the info tomorrow.
I'll no be back no doubt with lots of questions.
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