Cost of re-investing regularly in the same funds

Here’s something that I’m struggling to find the answer to.
Suppose I am investing in 3 ETF’s and 2 funds, 20% of the total each. Suppose also that every month I am adding some fixed amount to my savings, say £500, and I want to put this fixed amount into those 5 investments.
Does that mean I have to pay the fund dealing charge 5 times every month?
For example, with Halifax Share Dealing, 5 x £12.5=£62.5 every month? Or does adding new funds to existing investment not count as a new dealing?
What are good platforms for regular monthly investments?

Comments

  • coyrls
    coyrls Posts: 2,423
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    romsie wrote: »
    Here’s something that I’m struggling to find the answer to.
    Suppose I am investing in 3 ETF’s and 2 funds, 20% of the total each. Suppose also that every month I am adding some fixed amount to my savings, say £500, and I want to put this fixed amount into those 5 investments.
    Does that mean I have to pay the fund dealing charge 5 times every month?
    For example, with Halifax Share Dealing, 5 x £12.5=£62.5 every month? Or does adding new funds to existing investment not count as a new dealing?
    What are good platforms for regular monthly investments?

    Most platforms, including Halifax have a regular investment option. Halifax's regular investment option costs £2 per trade; you don't pay the standard £12.50 per trade charge.
  • george4064
    george4064 Posts: 2,802
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    As coyrls said, I suggest you check with the platform of their regular investing options.

    Including:
    - Which securities/funds are available for regular investing?
    - What are the dealing charges for regular investing?
    - Where/when/how is the cash taken to fund the regular investing?
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • eskbanker
    eskbanker Posts: 30,401
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    You could always cut down on transaction costs by investing £500 in each fund every 5 months (rotating) rather than buying all every month....
  • dunstonh
    dunstonh Posts: 116,040
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    Why invest in an ETF on a monthly basis and not a UT/OEIC?
    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.
  • darkidoe
    darkidoe Posts: 1,125
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    I have read quite abit into the dilemma of frequency of drip feeding being the the most effective without racking up a transaction cost that will put a drag on portfolio performance. I think quarterly drip feeding was found to be capture most of the peaks and troughs of volatility to get a decent average. I myself don't think that there is too much into it unless the sum being invested is sizable. I am doing yearly re-investment at present, just for simplicity and also just to make full use of the year to gain dividends via the ISA route. I believe for the very long term, it is the dividends that boosts returns more...

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