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Looking for FTSE100 tracker with low charges

I was thinking of investing around £3000 as a lump sum in a FTSE100 tracker fund (ideally as an ISA). I know there are quite a few mainstream companies offering this for an annual management charge of 1% but does anyone know of any providers who would do this for less? Any suggestions would be much appreciated.
Thanks, Andy
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Comments

  • wriggly
    wriggly Posts: 362 Forumite
    Fidelity and L&G have FTSE All-Share trackers for 0.3% and 0.5% respectively. L&G also have a FTSE 100 tracker for 0.75%, but an All-Share tracker adds about 500 more shares for further diversity while being similar in expected returns to the 100.
  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I was thinking of investing around £3000 as a lump sum in a FTSE100 tracker fund (ideally as an ISA)

    Any reason you are choosing such an awful index to put 100% of this investment into?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • laffer
    laffer Posts: 145 Forumite
    dunstonh wrote: »
    Any reason you are choosing such an awful index to put 100% of this investment into?

    What would you suggest dunstonh?
  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    What would you suggest dunstonh?
    I cant because a) its against board rules b) I would break FSA rules and c) I dont know what the OP is looking for (hence why the aforementioned rules are there). I can nudge and comment but I am not there to say what they should do. If they want to DIY, then that is what they should do.

    However, in the case of the FTSE100, its consistently been one of the worst Western indicies for 15 years. FTSE100 trackers have been consistently bottom of the performance tables (although thats because large caps have been out of favour). The index is limited when it comes to diversification and its too heavily weighted towards a minority of companies.

    If you are looking to have some large cap exposure as part of your UK sector allocation then fair enough but 100% of a contribution into such an area doesnt seem at all sensible. (note the OP may be doing part of his UK allocation but it may also be 100% of the investment total - we dont know).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • chris1
    chris1 Posts: 582 Forumite
    Part of the Furniture 100 Posts
    dunstonh wrote: »
    However, in the case of the FTSE100, its consistently been one of the worst Western indicies for 15 years. FTSE100 trackers have been consistently bottom of the performance tables (although thats because large caps have been out of favour). The index is limited when it comes to diversification and its too heavily weighted towards a minority of companies.
    Which indices do you like dunstonh?
  • The problem with ftse100 is it is not diverse, 40% is in just 10 shares afaik

    So maybe looking for a more diverse index would be best, you left it a bit late

    If you go with L&G before end of the tax year and dont withdraw the funds I believe they are offering to suspend any management charges till the end of 09

    The actual performance and risk should matter more then that but no one can really tell you what to choose or what will do well.

    My own bias is towards Asian stock markets but some think they have further to fall as they are exporters reliant on the countries now in trouble

    As a british tax payer you are already invested in many of the Ftse100 banks listed and delisted

    Google hl and look through the funds they list and the holding % shown
  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Which indices do you like dunstonh?

    I dont. I tend to work to either a sector allocated portfolio or yielding portfolio. I dont try and pick areas in isolation.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for the advice.
    My intention was to make an investment in an FTSE100 tracker as this index has fallen sharply the last 18 months and now represents good value.
    By this I mean I think there's a good chance of it giving a strong increase in value over the next 5 years or so.
    I do realise this is relatively high risk so I'm intenting to put around 15-20% of my savings into this investment and keep the rest in my cash ISA.
    However, after reading some of the comments, I'm thinking I might be wise to consider to the FTSE All share as a more diverse investment
  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    andy71 wrote: »
    Thanks for the advice.
    My intention was to make an investment in an FTSE100 tracker as this index has fallen sharply the last 18 months and now represents good value.
    By this I mean I think there's a good chance of it giving a strong increase in value over the next 5 years or so.
    I do realise this is relatively high risk so I'm intenting to put around 15-20% of my savings into this investment and keep the rest in my cash ISA.
    However, after reading some of the comments, I'm thinking I might be wise to consider to the FTSE All share as a more diverse investment
    Why limit yourself to just one index? Even the AllShare is effectively going to be dominated by the largest 10 or 11 companies in the FTSE100.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    'm thinking I might be wise to consider to the FTSE All share as a more diverse investment

    Its not that diverse though. It is within the UK by UK standards but why not 3x£1000 funds with different objectives and regions. That way you diversify more and possibly add to the potential depending on what view you have have short term UK prospects.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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