which all share tracker in HL SIPP

Freefall123

I have a Hargreaves Lansdowne SIPP and I am slowly putt5ing money back into the market. I would like to have a FTSE All share tracker that I can put monthly contributions into. I also thought this would be a good way of putting in the minimum requirement of £1000 for lump sums and then selling and rebuying say £250 in 4 other funds. I plan to have 10% of my portfolio in this tracker.

My question is which is the cheapest?
The F&C is no initial with 0.3% annual charge with and additional 0.5%+vat in th SIPP

or
the Scottish Widows is an initial 0.5% with an annual charge of 0.25% plus 0.5%+vat

Thanks

Freefall

dunstonh

I would have thought a stakeholder or personal pension would have been your cheapest option if you are looking at funds. Don't HL increase the charges on low cost funds? Cheapest of all is to get a different SIPP and go with an ETF (assuming large enough valuation to make the annual costs offset the amc)

EdInvestor

dunstonh wrote: »

Cheapest of all is to get a different SIPP and go with an ETF (assuming large enough valuation to make the annual costs offset the amc)

Cheapest for tracker ETFs will be a SIPP with no annual fee and low dealing charges.

H-L is not ideal for tracker type investments (nor is a PP as the minimum cost is usually double the tracker fee or more).Ideally trackers belong in ISAs, not pensions.

H-L's selling point is good choice of top quality unit trusts and no initial charge.

Freefall123

So I''ll open an ISA for a tracker, but does my idea of using one of those two trackers in my SIPP as a way of splitting a £1000 investment into 4 other funds sound good and if so which one.

dunstonh

H-L is not ideal for tracker type investments (nor is a PP as the minimum cost is usually double the tracker fee or more

You can get around 0.3% on a personal pension.

jamesd

Your way is a poor one because HL's SIPP lets you buy with 250 minimum purchase. Better just to buy the four funds directly if you want 250 in each.

Their ISA has a 1,000 minimum.

For both, the minimum per fund for regular monthly contributions is 50.

If you did want to buy just to split, you'd pick an OEIC that's very popular, so is likely to have low buy and sell overheads. Something like Invesco Perpetual Income.

Freefall123

Thanks JamesD. I have the HL SIPP and when I come to buy funds its says the minimum is £1000 not £250 - so I'll guess I'll use your suggestion of an OEIC to diversify, when I need to.

Anyone suggest the cheapest ISA for ETF's ?

Freefall

jamesd

Checking the account history I see that I was able to purchase in 250 Pound amounts when I was saying where to invest new money. I was able to do this with several different chunks added at different times, investing in some different funds each time, so it wasn't limited to just the first money addition to the account.

You're right that the plain buy option has a 1,000 minimum for a fund you don't have any of. I suppose that's one reason to put a small amount in any potentially interesting fund, because I was offered the ability to add 250 to a fund that had less than 450 value.