Investing in the FTSE 100 question

DiggerUK

moneysaver_joe,
I don't know if you have heard of the following
http://www.coral.co.uk/sb.go?page=index&lang=20&sid=20

http://www.ladbrokes.com/lbr_portal?action=change_display_price_type&priceType=

If you decide that the FTSE 100 is a bit risky for you, then I'm sure the above would allow you to hand over your cash to them. Perhaps the 3.30 at Chepstow?

Don't be a dummy.

Rollinghome

tradetime wrote: »

True, but if you choose to buy through iii portfolio builder (assuming they allow ETF's in that offer) then it will be free to buy until June.

Doesn't say not. Sounds a good offer (assuming the cost of selling after June is small too). Though it worries me a bit the number of peeps being now being tempted into equities with small sums.

ses6jwg

I read that you dont pay stamp duty on ETFs, is this correct?

Californication

ses6jwg wrote: »

I read that you dont pay stamp duty on ETFs, is this correct?

Yes

--C

[extra text so post is allowed]

ses6jwg

Good Stuff, I'll be looking to buy into a BRIC ETF next tax year as part of my ISA, so through III will be free to buy until June 2010.

QuietDragon

moneysaver_joe wrote: »

Just wanted a quick Sanity check.

See a psychiatrist.

moneysaver_joe wrote: »

I've a £1,000 to invest and already filled my ISA. I wanted to invest £1,000 into a share ISA that tracks the FTSE 100. I've read the articles and Best Invest seems to allow £1,000.

I need to choose a fund and wanted to check that this is the correct one:
HALIFAX UK FTSE 100 INDEX TRACKING A

Can I offer a somewhat volte-face approach to choosing your fund?

Firstly, to categorically and emphatically back up dunstonh's sentiments - do NOT go to the banks for funds. They won't and/or can't offer you anything even remotely close to:

objective and commission-independent advice
whole-of-market fund choice
good value

Secondly, the Halifax UK FTSE 100 tracker above is a "UK Large-Cap Blend Equity fund" (Morningstar category), and thinking somewhat out of the box, if you go along this line rather than the FTSE tracker line, you could come up with better funds, such as M&G Recovery A Acc...

Trailing Returns at 31/12/2009
YTD 40.87%
3 Years Annualised 4.72%
5 Years Annualised 11.91%
10 Years Annualised 6.17%

which compares with the Halifax UK FTSE 100 Index Tracking B (sorry, I don't have the data for the A fund):

Trailing Returns at 31/12/2009
YTD 30.59%
3 Years Annualised 1.33%
5 Years Annualised 6.84%
10 Years Annualised - unavailable

The two funds approach the UK equities market differently:

M&G Recovery: The fund invests predominantly in a diversified range of securities issued by companies which are out of favour, in difficulty or whose future prospects are not fully recognised by the market. There is no particular income yield target.

Halifax UK FTSE 100 Index Tracking: The investment objective of the Halifax UK FTSE 100 Index Tracking Fund is to aim to match as closely as possible, subject to the effect of charges and regulations in force from time to time, the capital performance and net income yield of the FTSE 100 index.The portfolio is invested primarily in companies comprising the FTSE 100 Index. Index futures may be used for efficient portfolio management purposes only.

Alternatively, some other out-of-the-box suggestion if you want to invest in the UK:

Investec UK Special Situations A (UK Large-Cap Value Equity)
"The Fund aims to provide a combination of income and long term capital growth, primarily through application of a contrarian approach to investment in UK equities and in derivatives the underlying assets of which are UK equities."
Trailing Returns at 31/12/2009
YTD 37.62%
3 Years Annualised 1.25%
5 Years Annualised 8.13%
10 Years Annualised 6.87%


Schroder Income GBP (UK Large-Cap Value Equity)
"The Fund’s investment objective is to provide a growing income, predominantly from investment in UK equities. In seeking a yield higher than that offered by the major UK equity indices, the Fund will invest primarily in above average yielding equities rather than fixed interest securities. Investment will be in directly held transferable securities. The Fund may also invest in collective investment schemes, warrants and money market instruments."
Trailing Returns at 31/12/2009
YTD 35.87%
3 Years Annualised 1.78%
5 Years Annualised 8.07%
10 Years Annualised 7.04%


Rensburg UK Mid Cap Growth (UK Mid-Cap Equity)
"The investment seeks to achieve capital growth principally through investment in medium-sized UK companies. The Manager intends that the Scheme should outperform the FTSE 250 Index (excluding investment company stocks) over the medium to longer term. The Manager will invest at least 80% of the property of the Scheme in a strategic selection of investments issued by “medium-size” UK companies (i.e. companies whose shares qualify for inclusion in the FT-SE 250 Index)."
Trailing Returns at 31/12/2009
YTD 45.18%
3 Years Annualised 2.36%
5 Years Annualised 13.48%
10 Years Annualised 7.78%

None of the above is in any way whatsoever to be taken as financial advice.