SIPP, Hargreaves Lansdown and Funds

selimap

Reading this 1 year down the line (so maybe no one will read this reply!), I think it is VERY unfair on Hargreaves lansdown. I have used them for most of my shares, PEPs and ISAs for years and more recently a SIPP. I consider their customer service outstanding, easily the best of any financial company I have dealt with. Post is handled same day. Telephone calls are answered withing a few seconds and the person always seems knowledgable and helpful. Web site is matter of personal preference, but I think it's quite good now.

I particularly like the very clear information on all my accounts that I receive, as well as the pro-active reserach data they send me.

There is one small disadvantage with the HL SIPP: they only credit tax releief when received from HMRC, typcially 8-10 weeks after investment. Some providers credit all eligible contributions with the tax relief immediately and assume they'll reclaim it later.

I've just compared HL and sippdeal charges and HL are better on several e,.g. no charge on annuity (purcahsed via HL) or on regular Income payments. (HL do charge more for one-off payments out). The charges are not levied on a strictly comparable basis, but I would say HL looks at least as cheap and possibly better than Sippdeal, depending on account activities.

Also note that if you have more than £100k investable assets, HL will give you free investment advice.

purch

(so maybe no one will read this reply!)

If you post it twice :eek: , I reckon you'll have a much better chance of someone reading it (just a hunch !!!!)

EdInvestor

selimap wrote: »

The charges are not levied on a strictly comparable basis, but I would say HL looks at least as cheap and possibly better than Sippdeal, depending on account activities.

It depends on what you are invested in.Generally Sippdeal is cheaper for direct investments in shares/gilts/ITs/ETFs, HL is cheaper for unit trusts.Sippdeal has no annual fee, HL charges a fee if you want to invest in shares.HL waives dealing fees for fund purchases, Sippdeal doesn't.

Sippdeal will give a better interest rate on cash, with the rate received applying to the full amount.

sabelu

If you have a mixed portfolio do HL charge you fees on the % of shares held?

cloud_dog

sabelu wrote: »

If you have a mixed portfolio do HL charge you fees on the % of shares held?

They charge 0.5% + VAT on investments which dont pay them renewal commission (most UTs / OIECs), up to a maximum of £200 pa.

cloud_dog

EdInvestor

Actually I think it's the UTs/OEICS which generally pay the commission and thus don't attracte the fees. Direct investment in shares, ITs, ETFs, gilts will attract fees as they pay no commission

cloud_dog

Correct, sorry '!!!!' 'backwards'

wellsie82

sorry for asking another question

re my sipp with HL, im currently putting in £78/80 per month and this will mean once the taxman tops this up it'll be £100 per month

ive got £1.8k being transferred over from a stakeholder pension, and another £3k or so later in the year when contracted rights should be allowed to be transferred in too

ive been researching into where i would like to invest and have drawn up a list of 8-9 funds, these are spread over different economies etc and i would like 20% of my cash in one fund, 20% in another, 10% in others and 5% in others etc

my question is, how do i go about this

HL have advised me

The minimum monthly contribution that we accept into the HL SIPP is £50 gross (£39 net). This is also the minimum amount that you can invest into one fund on a monthly basis. Therefore, if you wish to invest into two different funds you would need to contribute a total amount of £100 gross (£78 net).

in anyone's experience, if i invested all my cash into one fund as a lump sum and then switched smaller amounts to where i wanted it, would this work?

if not, is my only way of splitting up my cash into 8-9 funds by saving up enough monthly contributions and then buying into these various funds on a one-off/adhoc basis

i understand that HL have a system whereby you can tell them to dripfeed contributions into funds for up to six months and my £100 would then go into two funds per month, this however would only sort 2 of my 8-9 funds

are deals via the phone any different or do these still carry this minimum investment? is this HL's rule or the fund managers rule?

sorry for the longwinded and complex post!

EdInvestor

wellsie82 wrote: »

in anyone's experience, if i invested all my cash into one fund as a lump sum and then switched smaller amounts to where i wanted it, would this work?

No


if not, is my only way of splitting up my cash into 8-9 funds by saving up enough monthly contributions and then buying into these various funds on a one-off/adhoc basis


Yes,probably

wellsie82

EdInvestor wrote: »

wellsie82 wrote: »

in anyone's experience, if i invested all my cash into one fund as a lump sum and then switched smaller amounts to where i wanted it, would this work?

No


if not, is my only way of splitting up my cash into 8-9 funds by saving up enough monthly contributions and then buying into these various funds on a one-off/adhoc basis


Yes,probably

thanks for your feedback Ed, do you know what their minimum is into each fund online or do they go off of what the underlying fund manager says?

i would of thought HL buy that many funds everyday that the fund managers minimum kind of goes out of the window and this would be HL's rules