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  • FIRST POST
    • romsie
    • By romsie 11th Oct 16, 10:30 AM
    • 1Posts
    • 0Thanks
    romsie
    Cost of re-investing regularly in the same funds
    • #1
    • 11th Oct 16, 10:30 AM
    Cost of re-investing regularly in the same funds 11th Oct 16 at 10:30 AM
    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?
Page 1
    • coyrls
    • By coyrls 11th Oct 16, 10:47 AM
    • 590 Posts
    • 544 Thanks
    coyrls
    • #2
    • 11th Oct 16, 10:47 AM
    • #2
    • 11th Oct 16, 10:47 AM
    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?
    Originally posted by romsie
    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
    • By george4064 11th Oct 16, 10:56 AM
    • 575 Posts
    • 599 Thanks
    george4064
    • #3
    • 11th Oct 16, 10:56 AM
    • #3
    • 11th Oct 16, 10:56 AM
    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

    Save £12k in 2016 - #045
    • eskbanker
    • By eskbanker 11th Oct 16, 1:27 PM
    • 3,616 Posts
    • 3,236 Thanks
    eskbanker
    • #4
    • 11th Oct 16, 1:27 PM
    • #4
    • 11th Oct 16, 1:27 PM
    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
    • By dunstonh 11th Oct 16, 2:33 PM
    • 85,079 Posts
    • 50,104 Thanks
    dunstonh
    • #5
    • 11th Oct 16, 2:33 PM
    • #5
    • 11th Oct 16, 2:33 PM
    Why invest in an ETF on a monthly basis and not a UT/OEIC?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • darkidoe
    • By darkidoe 11th Oct 16, 8:17 PM
    • 638 Posts
    • 682 Thanks
    darkidoe
    • #6
    • 11th Oct 16, 8:17 PM
    • #6
    • 11th Oct 16, 8:17 PM
    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...
    Save 12K in 2016 # 8 £16 253.55/12 000 (135.45%) Achieved!
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