Economical way to invest long-term

Newbie_Investor

Hello all

I have had a trust created for my children into which I have £10,000 to invest on their behalf for them to benefit from in about 20 years time.

I wish to try and get this money to grow through sensible investment and feel that a good way to achieve this would be with a portfolio of funds.

What would people see as a reasonable way to go about this? What about something like an execution only platform? Hargreaves Lansdown?

I would like to self-select the funds as I feel I can get help on the fund selection through personal contacts so it's the right route to making these investments that I need to know. Clearly whatever I do needs to be able to work with a Trustee investor.

Thanks in advance for your input and help.

Newbie_Investor

To add to the above - I've seen SelfTrade mentioned in a few of the other threads I've been looking through on here.

What does ST offer that HL doesn't and vice versa?

Thanks!

saverjustice

I would open a share dealing account.


http://www.moneysavingexpert.com/savings/cheap-online-sharedealing


http://www.moneysupermarket.com/shares/CompareSharesForm.asp

Newbie_Investor

saverjustice wrote: »

I would open a share dealing account.

Thanks for this, but I want to spread the risk over lots of different shares, which would surely cost a lot in fees this way would it not? Hence the attraction of funds - I know that there will be annual fees but I prefer the relative safety of the spread of investment.

Anyone else with opinions on Hargreaves Lansdown or SelfTrade???

Thanks in advance
Jem

dunstonh

What type of trust are you going to use with the investments? Is it one that unit trusts can accept or will life funds have to be used?

saverjustice

Don't collective investment funds cost more than share dealing accounts? I would have thought so.

Newbie_Investor

dunstonh wrote: »

What type of trust are you going to use with the investments? Is it one that unit trusts can accept or will life funds have to be used?

Not sure if I'm honest. The trust papers have been drawn up already by a lawyer - there seems to be no restriction on choice of investment by the trustees, so I don't think there will be a problem with either from my end. Whether there is any restriction on Trustee investments from HL or ST or any other provider anyone suggests is a question I need answered I guess.

Thanks

Newbie_Investor

saverjustice wrote: »

Don't collective investment funds cost more than share dealing accounts? I would have thought so.

Quite possibly if you're comparing investing into one share compared with investing into one fund, but as I've said, that is too risky for me.

saverjustice

Better ask the lawyer who drafted the trust.

saverjustice

Funds buy and sell shares all the time and you pay for that anyway.

Reaper

You mention Selftrade but that is really best for buying individual shares, ETFs and Investment Trusts.

However it sounds like you are thinking more of managed funds in which case the Hargreaves Landsdown Vantage Fund Account is among the cheapest and their online management for the portfolio is good. It's not so good for buying individual shares or ETFs (except those from HSBC) as they charge extra.

You can open it on behalf of a child in Trust. They will need to see the Trust Document.