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Hargreaves and Lansdown Stocks&Shares ISA
Comments
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Yes that's the concern I had. I think they must suggest a minimum amount for a reason and that putting less than 1000 might would take a very long time to generate significant returns whatever the growth.0
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middlepuss wrote: »I'd agree with that. Much easier to invest in the whole UK market via an all share tracker than to invest in many sector funds in the hope of getting well-spread exposure. As far as I am aware the HSBC UK All Share Index tracker is the lowest cost UK tracker: TER 0.27% I think.
If investing for the long term do also consider emerging markets: China, India, Brazil. Whose econamy will grow more over the next 20 years: UK or China/India/Brazil?0 -
Just to let you know that Hargreaves Lansdown (HL) have a selection of themed Multi Manager funds to invest in. If you don't feel like picking a fund then these funds spread your risk somewhat.
HL also operate a Loyalty bonus where they refuind some of the trail commission. Thuis commission is supposed to be for ongoing advice but you probably wouldn't get this with the banks they would use it as profit.0 -
Andrew2010 wrote: »The UK's I'd hope!
I think you're confusing yourself re the returns. As Lokolo said, if n funds all grow by an average of 5% you will get 5% growth on your £1000 - exactly the same as if you'd chosen a single fund which returned 5%, less than if you'd had the foresight to put all your money in a fund returning 10% and more than if you're chosen fund had gone to the dogs - it's all about the "average return" of all your investments.
As someone else said, I think 20 funds would be overkill but 5 - 10 would certainly be appropriate.
And also consider what happens if you put £1000 in in one go - is today a cheap day, or an expensive one? Ask me tomorrow! If you drip feed the £1000 in over several months you will lose out if your chosen fund does well in the first couple of months, but you will also be buying in "the sales" some months.
In summary, by choosing to dump all your money into a single fund you are gambling that your fund choice is a good one and that prices will only ever rise. For the former, you'd have to be very lucky and for the latter, I can assure you they don't.You've never seen me, but I've been here all along - watching and learning...:cool:0 -
Just to let you know that Hargreaves Lansdown (HL) have a selection of themed Multi Manager funds to invest in. If you don't feel like picking a fund then these funds spread your risk somewhat.
HL also operate a Loyalty bonus where they refuind some of the trail commission. Thuis commission is supposed to be for ongoing advice but you probably wouldn't get this with the banks they would use it as profit.You've never seen me, but I've been here all along - watching and learning...:cool:0 -
Just to let you know that Hargreaves Lansdown (HL) have a selection of themed Multi Manager funds to invest in. If you don't feel like picking a fund then these funds spread your risk somewhat.
They are pretty naff though with better options available.HL also operate a Loyalty bonus where they refuind some of the trail commission. Thuis commission is supposed to be for ongoing advice but you probably wouldn't get this with the banks they would use it as profit
Dont read too much into the trail commission. On a typical AMC of 1.5%, HL are getting around 1.2% of that. So rebating around 0.1% on ISAs is not exactly giving much back. For that they are giving no advice yet keeping the majority of the remuneration designed to pay for advice. Yes you save a bit of money but don't kid yourself that its a good thing. For larger amounts, going to a fee based IFA would be cheaper if you only want to get the money on platform with full rebate of trail (assuming you want to DIY and especially if you want an MM fund).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.0 -
Andrew2010 wrote: »You mean like invest in 20 funds £50 each? Wouldn't it be better to invest elsewhere?
I am working along similar lines at the moment. I can afford to increase my monthly DD from £50 to £150 for a few months so I am expanding my holding from 4 to around 10 funds, depositing £50 in each with a view to adding further lump sums at a later date.0 -
LongTermLurker wrote: »Very unlikely. I think middlepuss was pointing you in the direction of investor sentiment...
I think you're confusing yourself re the returns. As Lokolo said, if n funds all grow by an average of 5% you will get 5% growth on your £1000 - exactly the same as if you'd chosen a single fund which returned 5%, less than if you'd had the foresight to put all your money in a fund returning 10% and more than if you're chosen fund had gone to the dogs - it's all about the "average return" of all your investments.
As someone else said, I think 20 funds would be overkill but 5 - 10 would certainly be appropriate.
And also consider what happens if you put £1000 in in one go - is today a cheap day, or an expensive one? Ask me tomorrow! If you drip feed the £1000 in over several months you will lose out if your chosen fund does well in the first couple of months, but you will also be buying in "the sales" some months.
In summary, by choosing to dump all your money into a single fund you are gambling that your fund choice is a good one and that prices will only ever rise. For the former, you'd have to be very lucky and for the latter, I can assure you they don't.
But if it's been in say 5 years before a drop then it would have to be substantial drop to result in an overall lost, right?0 -
When starting with £1,000 or similar it may be worthwhile looking at Jupiter Merlin Growth fund, it is a multi-manager so has higher costs but will give you a broad spread of high quality funds looking for growth. Read the Jupiter factsheets each month and get a feel for which funds, managers and companies are the best and after awhile you will be ready to go it alone. The Jupiter Merlin funds are available from Hargreaves Lansdown for 1/4% initial fee rather than the 5 1/4% if bought direct.
Regards,
Mickey0 -
You can do it monthly, so minimum £50 per month per fund. Set it up, do it for X amount. Then cancel it.
Seems like an awful lot of work keeping tabs on 20 funds with £50 invested in each one. You might find that HL aren't keen on adminstering this sort of portfolio either.
Would be much easier to stick £1000 in a passive tracker fund e.g., HSBC all-share tracker fund or an ETF. I wouldn't buy ETFs through HL though - their stockbroking fees are not the cheapest. Either way you will be averaging winners and losers but you will be paying lower fees than you would to a portfolio of actively managed funds
David0
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