FTSE All Share Tracker

elie222

I want to invest £1000 in a FTSE All Share Tracker for a few years. What's the cheapest and most simple way to do this?

I've looked at Fidelity: F&C FTSE All-Share Tracker 1 Inc

Will the only charges be 0.3% a year?

Are there taxes on profits? Can I use an ISA to avoid this?

Are there any other good companies that offer good trackers?

Also, does Fidelity have a good reputation? Is there a chance they could go bankrupt and I could lose my money?

Thank you

thrupence

elie222 wrote: »

I want to invest £1000 in a FTSE All Share Tracker for a few years. What's the cheapest and most simple way to do this?

http://www.h-l.co.uk/funds/security_details/sedol/3100844

I think that's about the cheapest. If you put it in an ISA you won't have any tax to pay, but you'd be unlikely to pay tax on £1000 invested as you have a CGT allowance of £9600 per year, unless you have more than this from other sources.

And yes you will lose money of the market goes down.

That's the most likely way you'll lose money.

Many people think that the UK market may not be the best for investments of this nature for quite some time to come. You really need to know what you're doing.

sabretoothtigger

I dont think the ftse will be at 5000 by year end really but for this year at least the cheapest would be l&g and 0% cost as they wont charge anything if you setup it before tax year end and leave it there till end of 09

elie222

L and G only give cashback on management if you invest £3600.

What's the CGT allowance? Do I have to fill in any forms to get it?

sabretoothtigger

I think they also allowed it for monthly contributions which could be quite small in theory but since its a % anyway it would be of most worth to someone putting in a lump sum.
I wasnt aware it had to be the max amount

CGT wont apply to isa, just make sure you have just the one isa afaik. Also ontop you get like yearly 9k tax allowance for cgt anyway, not many will do this well.


The actual performance of the investment matters more. Trackers are allready very cheap.
0.3% of 1k is 3 pounds a year and your'll lose or gain at least that much day to day so choosing the right day or month, trendline, etc is about 100 times more important then the management charges

Tax doesnt really matter in comparison to any chance to improve performance imo