Ditch fidelity Moneybuilder for HSBC Index tracker?

Newbie2saving

I made an error when I made my initial fund choices in that I didn't see the notes (I know you should read all the fine print, but I missed this totally!) about the additional 0.5%+VAT on the AMC for the Fidelity Moneybuilder Index tracker held within the H-L ISA S&S Vantage account. Whole point of adding a tracker was the low AMC. Would you guys ditch the Fidelity one in favour of the HSBC tracker for its low costs?

Am I right in saying this is HSBC's equivalent to Fidelity UK Moneybuilder? http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-share-index-inst-accumulation

TIA

jimjames

Yes, I would switch to HSBC as it has no additional charge and marginally lower TER. (0.27% vs 0.3% on Fidelity)

Newbie2saving

jimjames wrote: »

Yes, I would switch to HSBC as it has no additional charge and marginally lower TER. (0.27% vs 0.3% on Fidelity)

Whereas on H-L Fidelity Moneybuilder is 0.1%+(0.5%+VAT) when held in the ISA VS HSBC at 0.25% AMC. Thanks for the input. I need to work out how I go about doing this now as I have only ever bought on H-L, not sold!

Thanks.

jimjames

Newbie2saving wrote: »

Whereas on H-L Fidelity Moneybuilder is 0.1%+(0.5%+VAT) when held in the ISA VS HSBC at 0.25% AMC. Thanks for the input. I need to work out how I go about doing this now as I have only ever bought on H-L, not sold!

Thanks.

The key figure to compare is the TER which includes all expenses not just the annual charge. When you look at these the HSBC is cheaper on HL by a long way 0.27% vs 0.3% for Fidelity and you then pay 0.5% on top so it would effectively be 0.8% pa for Fidelity vs 0.27% for HSBC.

Its easy to switch on HL, you just choose the fund you want to sell and select the switch entire holding option, then choose which new fund you want it invested in.

Newbie2saving

jimjames wrote: »

The key figure to compare is the TER which includes all expenses not just the annual charge. When you look at these the HSBC is cheaper on HL by a long way 0.27% vs 0.3% for Fidelity and you then pay 0.5% on top so it would effectively be 0.8% pa for Fidelity vs 0.27% for HSBC.

Its easy to switch on HL, you just choose the fund you want to sell and select the switch entire holding option, then choose which new fund you want it invested in.

You're right, TER, I was looking in the AMC box by mistake so even worse off. Plus the 0.5% additional charge needs VAT adding in so it is actually worse, also with the VAT to increase, I know it's only pounds, but I need to take it into account. Thanks for your input I will make the changes next week.

Newbie2saving

jimjames wrote: »

Its easy to switch on HL, you just choose the fund you want to sell and select the switch entire holding option, then choose which new fund you want it invested in.

I've done it! Thanks jimjames, it is easy and the confirm pages as you go through the selling and switching process gave me peace of mind that I wasn't doing anything wrong!