SIPP, Hargreaves Lansdown and Funds

mcc28_x

The Wealth 150 list of funds discount the initial charge, often 4-5%.

As a novice investor it seems that I would be much better looking at theses funds rather than the wider market where I would incur the initial charge. Is my thinking correct in principle?

Aegis

mcc28_x wrote: »

The Wealth 150 list of funds discount the initial charge, often 4-5%.

As a novice investor it seems that I would be much better looking at theses funds rather than the wider market where I would incur the initial charge. Is my thinking correct in principle?

No, they'll discount the initial charge from most managed funds. The Wealth 150 list is basically their "flavour of the year" type investments, so you'd be better off widening your search to find funds that match your requirements exactly from the wider market, then look to see the remaining initial charge after discounting.

dunstonh

The Wealth 150 isnt a recommendation list. Its a whatever they are selling the most of list. It doesnt have a great reputation.

The HL SIPP is also an expensive way to buy funds. Indeed, virtually all SIPPs are. A novice investor would be much better placed with a low cost stakeholder or quality personal pension.

EdInvestor

dunstonh wrote: »

The HL SIPP is also an expensive way to buy funds. A novice investor would be much better placed with a low cost stakeholder or quality personal pension.

It is possible that a novice investor will be better off with a cheap stakeholder, though he will be offered only bog standard funds and he may these days pay the same fee as a SIPP.

An investor who wants access to all the best unit trusts (as opposed to a filtered selection of some more expensive insurance company versions) will be better off in a discounted SIPP, such as H-L's.

dunstonh

though he will be offered only bog standard funds and he may these days pay the same fee as a SIPP.

Like for like, around 0.4% in a stakeholder or 1 to 1.5% in a SIPP.

EdInvestor

dunstonh wrote: »

Like for like, around 0.4% in a stakeholder or 1 to 1.5% in a SIPP.

Many people are quoted 1.5% for a stakeholder with bog standard funds..

dunstonh

Many people are quoted 1.5% for a stakeholder with bog standard funds..

Try comparing like for like. People buying from HL are likely to buy on execution only. In which case you should compare SHP and PPP on execution only.

Comparing HL to the most expensive alternatives possible just creates a unfair bias to promote HL.

tartanterra

pensionpractitioner wrote: »

If you are looking to invest via Pension schemes, you should look at SSAS. SSAS is different to SIPP and recently there has been increase in businesses using SSAS. You will find a number of article on the internet on SSAS Vs SIPP.

:spam:Reported

Basking

Interesting info on the minimising of charges ..very important but what you do with the funds is the big question?
I found I had to think outside the box ..in today's market conditions ..and found some success over the past 6 months with an FT Index options specialist ...worked for me as the markets collapsed.
Horses for courses ..but just remember to look at the bigger picture, and examine every possibility .

everylittlehelps_2

IFAs hate SIPP, dont know why? Is it something to do with their commission.

I took advice from an IFA, he did my risk profile and recommended scottish widows. Most of the funds he recommended had 1.5% to 2.4% annual charge. Then he showed me he gets £2300 for this work. I wanted to do £10000 lumpsum and £500 everymonth. I felt the fees were rip off!! how can scottish widows afford to pay him that much for recommending me?

dunstonh wrote: »

Try comparing like for like. People buying from HL are likely to buy on execution only. In which case you should compare SHP and PPP on execution only.

Comparing HL to the most expensive alternatives possible just creates a unfair bias to promote HL.