Choosing Hargreaves Lansdown funds

gadgetmind

I'm actually putting shares in, but I guess I can immediately flog these and sit on the cash for a few days.

I just know I wouldn't actively manage my funds, which is why I went for the SIPP I did that does it for me. I guess I'm wanting something similar from HL.

Ian

Reaper

gadgetmind wrote: »

I just know I wouldn't actively manage my funds, which is why I went for the SIPP I did that does it for me.

Isn't that a contradiction in terms? SIPPs are for those who want to take an active role in their pension investment decisions.

dunstonh

I just know I wouldn't actively manage my funds, which is why I went for the SIPP I did that does it for me. I guess I'm wanting something similar from HL.

SIPPs are for the experienced and active investor. For the lazy investor they are typically the worst and most expensive option.

gadgetmind

The SIPP was the recommendation of an IFA and it was sold (missold?) to me on the basis that its automatic balancing allows me to be hands off. There were also promises (later reneged upon) that residential property would be an investment option.

As it happens, my SIPP has done pretty well in what have been bad times, and I've been putting lumps sums in there rather than the Friends Provident pension into which my monthly salary sacrifice goes. BTW, FP also allow online monitor and switching of funds. All of mine is in "balanced managed". :-)

Maybe I could do better by actively managing it all, or maybe not; even the experts seem to !!!! it up on a regular basis, and I really don't have the time or inclination to continually try and out guess the market.

So I'm really after a good spread around territories and sectors, good long-term growth, and low fees. The later is rather important when the prospect are for rather steady growth over the next decade.

Ian

dunstonh

The SIPP was the recommendation of an IFA and it was sold (missold?)

Possibly was mis-sold. SIPPS are oversold and overbought. They became fashionable and fashionable products and investments do tend to be sold and bought too much.

on the basis that its automatic balancing allows me to be hands off.

As do many personal pensions and investment funds available within a stakeholder.

There were also promises (later reneged upon) that residential property would be an investment option.

That was Gordon Brown. So, no liability there.

As it happens, my SIPP has done pretty well in what have been bad times, and I've been putting lumps sums in there rather than the Friends Provident pension into which my monthly salary sacrifice goes. BTW, FP also allow online monitor and switching of funds. All of mine is in "balanced managed". :-)

Friends Provident have two excellent funds in the cautious index fund of funds and the balanced index fund of funds. Both self balancing and both charged to comply with stakeholder limits at 1% p.a.

Maybe I could do better by actively managing it all, or maybe not; even the experts seem to !!!! it up on a regular basis,

That indicates a lack of understanding of the markets. Probably best if you dont actively manage it if you dont understand things like that. That isnt a criticism but an observation.

and I really don't have the time or inclination to continually try and out guess the market.

You shouldnt try and out guess the market. You cant predict the unpredictable.

If you are not going to actively manage your investments or pay someone to do it then a SIPP is likely to be the wrong option. You are effectively paying for a white elephant.

gadgetmind

Thanks for all of that. Maybe time for me to have another review of things, which has already got me yawning. :-)

I know that I'll never be able to get enough enthusiasm for all of this to be able to do a good job of it myself. So saying, the technology shares I chose for a self select ISA (mainly ARM and Imagination Technologies) have done stunningly well, but I guess that's because I know a lot about technology and the square root of shag all about the stock market.

I'll check which funds I'm in with FP. What's a good equivalent to the ones you recommended in HL?

Ian

jamesd

Have a look at the Jupiter Merlin range of funds rather than the HL multi-manager range. Same concept but better management.

For long term investing you might consider as much as 20% or even 30-40% in an emerging markets fund like Aberdeen Emerging Markets. Provided you're willing to accept that it may fall by as much as 75% or maybe even more in a few weeks or even days during a major financial crisis. Then take months or years or just days to recover.