Beginner's guide to investing

LucyTheDwarf

sh856531 wrote: »

... I don't really want to stump up 1000 in one go. I may take the plunge though if the general concesus is that the high income fund is a winner.

This is exactly what I've been thinking about recently... I'm thinking of adding £75 ish monthly, though I'm no sure. I'm fed up of the pitiful savings rates... but I've never invested before and am fairly cautious!

sh856531

I'm fed up of the pitiful savings rates... but I've never invested before and am fairly cautious!

Sounds like we're in the same sort of boat. I'm going to put most of my savings into cash until I get a little bit more comfortable with funds and the like, but I figured that I could handle my £100 pm not doing so well if it really came down to it.

Best Regards

sh856531

Hi guys,

Thanks very much for the info.

Can I ask, how does HL make their money?

If they pay the 5% and then also lop off 0.25 percent off of the comission rate, how do they make any money? Do they get a commission on anything I buy via them? Or do they get a signing on fee from invesco? Or perhaps both?

I'm just trying to figure out if there are any other hidden fees when going through H & L?

Is it really just the 1.25% management fee per year or are there other charges that I havent found yet?

Thanks again for your help. I really appreciate it

Best Regards

S

Lokolo

They do other services such as:

Independant advice - which is costly
Their own funds - which are costly

I think their buying fees they get discount because they buy in bulk on the 10th which they then pass onto us, the customers so they don't lose a lot of money from it.

sh856531

Lokolo wrote: »

They do other services such as:

Independant advice - which is costly
Their own funds - which are costly

I think their buying fees they get discount because they buy in bulk on the 10th which they then pass onto us, the customers so they don't lose a lot of money from it.

Hi lokolo,

In terms of the money that you are paying in each month, are you just getting charged 1.25% on the capital over the course of the year or are there additional costs in terms of actually making purchases or sales of the units of the fund?

Thanks

S

Aegis

sh856531 wrote: »

Hi guys,

Thanks very much for the info.

Can I ask, how does HL make their money?

If they pay the 5% and then also lop off 0.25 percent off of the comission rate, how do they make any money? Do they get a commission on anything I buy via them? Or do they get a signing on fee from invesco? Or perhaps both?

I'm just trying to figure out if there are any other hidden fees when going through H & L?

Is it really just the 1.25% management fee per year or are there other charges that I havent found yet?

Thanks again for your help. I really appreciate it

Best Regards

S

They keep at least some of the trail commission on your investment. The bit they give to you is not everything they get from the provider, so they make their money through sheer volume of execution-only fund purchases.

Lokolo

sh856531 wrote: »

Hi lokolo,

In terms of the money that you are paying in each month, are you just getting charged 1.25% on the capital over the course of the year or are there additional costs in terms of actually making purchases or sales of the units of the fund?

Thanks

S

All honestly I have no idea. This is just how the transactions look:



So I can't tell where the initial charges etc. are taken

Aegis

sh856531 wrote: »

Hi lokolo,

In terms of the money that you are paying in each month, are you just getting charged 1.25% on the capital over the course of the year or are there additional costs in terms of actually making purchases or sales of the units of the fund?

Thanks

S

The annual charge is deducted from the value of the funds on a daily pro-rata basis. It's included in the performance levels already, so you don't need to worry too much about correcting for the charges if you're working out your profit/loss to date.

Lansdowne

sh856531 wrote: »

In terms of the money that you are paying in each month, are you just getting charged 1.25% on the capital over the course of the year or are there additional costs in terms of actually making purchases or sales of the units of the fund?

H-L and Chartwell don't charge a purchase/sale fee because, as has been said, they make their money from the part of the annual commission not refunded to you.

On the other hand Cavendish and Alliance Trust, for example, charge a fixed fee per transaction and refund all the annual commission. So they are not worth considering for a small monthly purchase (unless they have another scheme I'm not aware of).

aardvaak

In answer to the original OP - Is don't -put it under the bed or failing that a home safe!