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  • FIRST POST
    • frenchplonka
    • By frenchplonka 16th Sep 17, 6:20 PM
    • 262Posts
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    frenchplonka
    Whats the minium
    • #1
    • 16th Sep 17, 6:20 PM
    Whats the minium 16th Sep 17 at 6:20 PM
    Assuming a person has a back up fund to cover emergencies and wishes to get into investing but doesn't have 500 a month to chuck into a S+S ISA what would be the minimum u recommend someone invest taking into account fees etc
    Sealed Pot Challenge 10 - #571
Page 1
    • frenchplonka
    • By frenchplonka 16th Sep 17, 7:12 PM
    • 262 Posts
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    frenchplonka
    • #2
    • 16th Sep 17, 7:12 PM
    • #2
    • 16th Sep 17, 7:12 PM
    48 views yet no advice or opinions
    Sealed Pot Challenge 10 - #571
    • A_T
    • By A_T 16th Sep 17, 7:16 PM
    • 184 Posts
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    A_T
    • #3
    • 16th Sep 17, 7:16 PM
    • #3
    • 16th Sep 17, 7:16 PM
    Maybe invest as much as you can afford to - but bear in mind it will be in securities which could lose a lot of their value.
    • frenchplonka
    • By frenchplonka 16th Sep 17, 7:20 PM
    • 262 Posts
    • 63 Thanks
    frenchplonka
    • #4
    • 16th Sep 17, 7:20 PM
    • #4
    • 16th Sep 17, 7:20 PM
    its not about what i can afford im just looking to start and increse with time what i wanna know would say 50 a month be pointless in the Vangaurd funds or any fund for that matter because of fees
    Sealed Pot Challenge 10 - #571
    • ColdIron
    • By ColdIron 16th Sep 17, 7:20 PM
    • 3,378 Posts
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    ColdIron
    • #5
    • 16th Sep 17, 7:20 PM
    • #5
    • 16th Sep 17, 7:20 PM
    I would imagine somewhere between £25 and £499, it would depend upon how much you can afford which only you know. There are plenty of platforms that do not charge to buy and sell funds
    • moxter
    • By moxter 16th Sep 17, 7:22 PM
    • 95 Posts
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    moxter
    • #6
    • 16th Sep 17, 7:22 PM
    • #6
    • 16th Sep 17, 7:22 PM
    Plenty of ways of having fees which are a % rather then fixed. So depending on who you put your money away with, the fees could be very low indeed if you're just putting away a small amount.
    • TCA
    • By TCA 16th Sep 17, 7:22 PM
    • 1,298 Posts
    • 734 Thanks
    TCA
    • #7
    • 16th Sep 17, 7:22 PM
    • #7
    • 16th Sep 17, 7:22 PM
    Recommend a minimum amount to buy what, achieve what exactly and in what timeframe?

    I think the minimum share or fund purchase is usually £50. You may or may not have to pay dealing commission and/or stamp duty depending on what you buy, which would be a large proportion of £50.
    • frenchplonka
    • By frenchplonka 16th Sep 17, 7:43 PM
    • 262 Posts
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    frenchplonka
    • #8
    • 16th Sep 17, 7:43 PM
    • #8
    • 16th Sep 17, 7:43 PM
    Ok so I was interested in the Vangaurd funds mainly because its passive i can just fire between 50-100 in a month and pretty much forget about it for the next 10-20 years starting at 100% equities and scale back closer to my 60s in say 30 years time thats the short version.

    what I dont want to do is chuck 50 into it each month if im going to lose i high % of that in fees etc hopefully that will get me a better reply now ive given a little more info
    Sealed Pot Challenge 10 - #571
    • ColdIron
    • By ColdIron 16th Sep 17, 8:02 PM
    • 3,378 Posts
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    ColdIron
    • #9
    • 16th Sep 17, 8:02 PM
    • #9
    • 16th Sep 17, 8:02 PM
    For small amounts you want a percentage fee provider that doesn't charge to buy and sell. For instance 0.25% pa on a £50 pcm investment would cost you maybe £0.75 a year. What you don't want is a fixed fee provider that charges for purchases as the fees could dwarf the amounts you have invested. There are plenty of these about. There are no platforms that I know of that will allow you to trade company shares, investment trusts, ETFs etc without charge so stick to funds such as the Vanguard ones you mentioned and you should be good
    • captainreckless
    • By captainreckless 16th Sep 17, 8:08 PM
    • 15 Posts
    • 7 Thanks
    captainreckless
    If you have a S&S ISA with Hargreaves Lansdown you can invest £25 a month into funds via direct debit from your bank account. You won't pay any fees on buying (or selling) funds with HL. What you will pay is 0.45% a year on the value of the funds you have with them.

    There are probably other platforms that run things along the same lines.
    • Puddylove
    • By Puddylove 16th Sep 17, 8:29 PM
    • 424 Posts
    • 688 Thanks
    Puddylove
    its not about what i can afford im just looking to start and increse with time what i wanna know would say 50 a month be pointless in the Vangaurd funds or any fund for that matter because of fees
    Originally posted by frenchplonka
    I read through the Vanguard S and S ISA terms and conditions and I think their minimum monthly amount was £100.
    • grey gym sock
    • By grey gym sock 16th Sep 17, 8:49 PM
    • 4,098 Posts
    • 3,573 Thanks
    grey gym sock
    the minimum practical amount is just the smallest monthly investment that a percentage fee provider will accept.

    (though if you really wanted to invest less, you could perhaps turn monthly investing on and off, so you were only investing the minimum every other month ... it would be rather fiddly, though.)

    I read through the Vanguard S and S ISA terms and conditions and I think their minimum monthly amount was £100.
    Originally posted by Puddylove
    yes, so vanguard's platform is only good for £100 minimum (though you could buy vanguard funds on another platform). their platform is cheap at 0.15% per year (of the current value of your investments with them), but restricted to their own funds.

    if you only have £50 a month to invest, you might use any of these platforms, which each charge 0.25% a year:
    - cavendish online
    - close brothers
    - charles stanley direct

    £25 a month is probably the lowest any platform will accept. as captinreckless said, hargreaves lansdown will accept £25, but they charge more than most platforms, at 0.45% per year (though it is still the right kind of charging for a small investment, i.e. percentage-based). there are probably others who accept £25 - not sure who.
    • frenchplonka
    • By frenchplonka 16th Sep 17, 9:01 PM
    • 262 Posts
    • 63 Thanks
    frenchplonka
    Thanks guys I have just opened at vangaurd account so may use this as I dont really understand the other funds however I was maybe looking to add in some SEA funds and see how they far assuming trump dont wipe them off the earth
    Sealed Pot Challenge 10 - #571
    • Alexland
    • By Alexland 16th Sep 17, 9:34 PM
    • 261 Posts
    • 137 Thanks
    Alexland
    If the OP wants to put £100 a month into a Vanguard ISA that sounds fine and the fees will be fair and low.

    The thing I particularly like about our Vanguard ISA is that the fee deduction can be automatic with no need to maintain a cash balance so all the money is working for you with no account administration to worry about.
    Last edited by Alexland; 16-09-2017 at 9:38 PM.
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