Regular, Small Tracker Investment?

inflationiscoming

Reaper wrote: »

In the case of Investment Trusts it does not if you go direct to the company involved. For example F&C (one I picked at random to check) accept £50pm and charge just a 0.2% dealing fee.

And £60 plus VAT annual charge for the investment trust ISA. That is a lot if you are investing £50 per month

jimjames

inflationiscoming wrote: »

And £60 plus VAT annual charge for the investment trust ISA. That is a lot if you are investing £50 per month

Which is why it isn't always worth having investments in an ISA. It also depends on the company, Aberdeen is just £24pa.

Reaper

inflationiscoming wrote: »

And £60 plus VAT annual charge for the investment trust ISA. That is a lot if you are investing £50 per month

The OP made no mention of wanting to place it in an ISA and F&C charge no annual fee on the non-ISA version. While I don't know their circumstances I am guessing somebody looking to invest just £50 per month is unlikely to need to put it in an ISA, except perhaps to simplify their tax return.

Thrugelmir

Reaper wrote: »

The OP made no mention of wanting to place it in an ISA and F&C charge no annual fee on the non-ISA version. While I don't know their circumstances I am guessing somebody looking to invest just £50 per month is unlikely to need to put it in an ISA, except perhaps to simplify their tax return.

Always transfer the holdings at a later date into an ISA.

atush

inflationiscoming wrote: »

And £60 plus VAT annual charge for the investment trust ISA. That is a lot if you are investing £50 per month

I hold mine outside of an ISA. So my charges are extremely low and growth over 10+ years has been good.

tomato3000

To end the speculation, I am planning to wrap the investment in an ISA. At HL there in an annual fee of 0.5% and no charges for OEICs.

While I appreciate the correction on my understanding of Investment Trusts the necessity to go direct makes it more complicated to research. As I'm happy with the risks of the FTSE All share it seems there is unlikely to be much difference between the 3 options and the OEIC route seems marginally simpler.

atush

Apart from Global exposure and gearing, then yes.

Personally, I found it no narder to research my investment trusts before choosing than to pick an OEIC as it took aroudn the same amt of time, and a simple phone call had the forms to me in days.

One advantage to HL or another ISA wrapper is that once you have an acct with them it will be easier to invest more thru them when hopefully you increase your investments in future and perhaps choose a different OEIC.

Jegersmart

Is there any particular reason why you think the FTSE will outperform any other index?

tomato3000

atush wrote: »

Personally, I found it no narder [sic] to research my investment trusts before choosing than to pick an OEIC as it took aroudn the same amt of time

I agree the fund research is comparable, however the practicalities of investing need looking into as well. In addition I'd like to do everything online.

Is there any particular reason why you think the FTSE will outperform any other index?

No. In fact I don't believe it will. However I am more familiar with the British economy than any other (as I live here and always have done) and international investment surely carries additional exchange risks (doesn't it?). I don't mind risk as long as I understand it but I don't understand FOREX or other nations economies enough to believe I would understand it.

The 'bet' that I am making is that, in the long run, the FTSE should provide a better return than any cash ISA/savings account provided by a high street bank. History suggests this should be the case.

atush

Yes, history suggest it sould do better, but some exposure in emerging markets can help. AS can NA, or even europe (Greece aside).

Yes, other markets can mean an exchange risk, but then so do some large FTSE companies who pull in a lot of income/trade in USDs.

I hold a lot of UK equities in pensions and other investments. One of my inv trusts invests in smaller uk companies. But I like to have exposure to all markets as todays economy is Global and when one is doing badly, others can be doing well (for instance Greece and Germany).