Investment management

dunstonh

would use my past performance as a benchmark.

And your portfolio is suited to your risk profile. Who is to say that the risk profile of the OP is the same as yours? A less volatile portfolio may be more desirable (or a more volatile one).

The portfolio should be built to match the risk profile of the individual. A low risk portfolio may not (probably will not) do as well as a high risk one over the long term but if the investor cannot sleep at night with worry and doesn't enjoy the rollercoaster of ups and downs in the short term, then they shouldnt take the higher risk.

So, a low risk portfolio may not meet your benchmark over the long term but that doesn't make it bad.

brodev

I use https://www.bestinvest.co.uk and I like them. They ask me questions to define my risk profile then based on the results they offer researched trusts that they reccommend. They buy these trusts for me and refund all (if not, most) of the commision. They make their money from the trail commision that all fund managers pay them. I can check online how my investments are doing and change them if I wish and I can change my profile on an ongoing basis. As a new investor in unit trusts some years ago I did not know that IFAs get commision on buying shares therefore it can be worth their while to churn. with bestinvest I get some generic advice but pay execution service.

dunstonh

They ask me questions to define my risk profile then based on the results they offer researched trusts that they reccommend.

Like every IFA.

They buy these trusts for me and refund all (if not, most) of the commision. They make their money from the trail commision that all fund managers pay them.

Just like many IFAs.

I can check online how my investments are doing and change them if I wish and I can change my profile on an ongoing basis.

Just like many IFAs.

As a new investor in unit trusts some years ago I did not know that IFAs get commision on buying shares therefore it can be worth their while to churn.

Whilst it may apply to some, it certainly isnt standard. I know of only one IFA that charges on switches and the switch charge just about covers admin only. The rest take trail only. Just as Bestinvest.

with bestinvest I get some generic advice but pay execution service.

So, you get basic advice and pay for that whilst others offer full advice for exactly the same cost.

I only make these points because its clear that there is an assumption that just because some have high charges, all do. This is clearly incorrect.

The reason some charge high prices is because they can. If we were all bothered about charges, then we would all shop in Aldi or some other cheap rubbish shop. Money saving is not about paying cheap. Its about getting value for money.

brodev

dunstanh, I am not an IFA. I have no doubt that you are a reputable IFA. I meant no disrespect to you, but you seem to have taken exception to what I have posted. I don't understand why. I also do not think that Aldi is a rubbish shop. It along with Nettles and Lidl qualify for their own spot on this forum. I have bought many a bargain in both Aldi and Lidl. Like most people I would not do all my shopping in either, but I can spot a bargain when I see one. Perhaps what suits me will not suit someone else but surely with shopping and with IFAs if we do not know of the alternatives then we are at a disadvantage.

globevestor

dunstonh wrote:

And your portfolio is suited to your risk profile. Who is to say that the risk profile of the OP is the same as yours? A less volatile portfolio may be more desirable (or a more volatile one).

The portfolio should be built to match the risk profile of the individual. A low risk portfolio may not (probably will not) do as well as a high risk one over the long term but if the investor cannot sleep at night with worry and doesn't enjoy the rollercoaster of ups and downs in the short term, then they shouldnt take the higher risk.

So, a low risk portfolio may not meet your benchmark over the long term but that doesn't make it bad.

I agree. My past investing style may not be suitable for me. I have to re-evaluate.

carnet

brodev wrote:

I use www.bestinvest.co.uk and I like them. They buy these trusts for me and refund all (if not, most) of the commision. They make their money from the trail commision that all fund managers pay them.

However, its cheaper to use Hargreaves Lansdown as :

a) their Initial Charge discounts on many funds are higher than Bestinvest's

b) they also refund, typically, half their Annual (trail) commission* - Bestinvest refund none of it.

Also, from experience, HL make far fewer mistakes than Bestinvest (and, especially, one of the supermarkets they use, viz Cofunds).

Finally, IMHO, Bestinvest have a certain "snootiness" about them which I find off-putting and which I have never sensed with HL over many years of dealings.

* Cavendish Online will rebate all the trail commission but charge upfront and annual fees and impose other restrictions.

brodev

Also, from experience, HL make far fewer mistakes than Bestinvest (and, especially, one of the supermarkets they use, viz Cofunds).

I have had no experience of this although "forewarned is forearmed"
I would be grateful if you could give me some more details in order that I can be a bit more aware of what to lookout for

carnet

The main thing you have to watch out for, especially if you're buying funds using Cofunds via Bestinvest, is that the IC discount advertised by Bestinvest is actually what Cofunds gives you.

It has happened to me on more than one occasion that Cofunds have given a smaller discount than that stated by Bestinvest.

It's a hassle getting it rectified - and Cofunds always blames Bestinvest for not advising them properly .

You also have to check to ensure they have allocated the correct type of units/shares you have requested ie Acc. or Inc.

PS I was born in Millport .

brodev

carnet wrote:

PS I was born in Millport .

I knew that there was something about you that II liked