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H-L introduces a Tracker Platform Charge
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gadgetmind wrote: »Long-term, I'd still go for Vanguard, but either LifeStrategy with HL due to their per-fund fee, or a selection of Vanguard trackers on (say) Bestinvest. The latter is only for those who will be putting enough into there for the £100+vat pa fee to be insignificant.
I think Best custody fee is £50pa for ISA or investment account, or £100pa for SIPP (plus vat)0 -
psychic_teabag wrote: »I think Best custody fee is £50pa for ISA or investment account, or £100pa for SIPP (plus vat)
Yup, sorry, my head is in SIPP mode until April 2012 when the fresh ISA season starts.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
black_taxi wrote: »new low cost tracker---you have too register before dec 12th
http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/swip-ftse-all-share-index-swip-foundation-growth-accumulation
I really can't see the point in registering by 12 December unless you have brand new money you want to invest.
For existing holdings you want to switch you might as well wait until after launch and then action the switch so you aren't out of the market.
Having looked at the increased costs (£192 platform fee) I will be writing to HL to complain. It seems very unfair that it costs substantially more to hold funds than it does shares. Why cap the share fee at 0.5% / £45 but have the fund fee unlimited? I could understand applying the same cap to both but penalising UT investors seems a very poor commercial decision.
Also note that the platform fee isn't just for trackers, it also covers some managed funds such as the Lindsell Train UK equity fund which is one of my favourites due to its low fees.Remember the saying: if it looks too good to be true it almost certainly is.0 -
investment trusts are typically a notch up the risk scale compared to a comparable UT/OEIC. However, the assets are generally the major driver of where it appears on the risk scale.
I'd agree with your second sentence though which is why a vast IT such as Alliance in the IT Global Growth sector with investments in property, equities, bonds, etc, etc. and a stable discount is likely to be considerably less risky than the majority of Global UTs.
Over the next year preceding RDR I hope IFAs will get up to speed on investments that don't pay sales commission such as ITs, which most currently know little about, (I could tell you of my experience of an IFA on that) so that they can give informed advice. Would be interested to know how they are preparing .0 -
Also note that the platform fee isn't just for trackers, it also covers some managed funds such as the Lindsell Train UK equity fund which is one of my favourites due to its low fees.
On the brighter side, I'd suggest it's a useful wake-up for HL clients to realise how much they are paying and could save by using such as Cavendish On-line and Alliance. It looks as if Cavandish are waiving their fee at the moment.0 -
Thanks (and dunstonh) - now I understand - but they do not return better than 100% equities in the long term do they?
(trying to decide between Lifestyle 100, 80 and 60)
However, don't dismiss paying off your mortgage. It might not give you a big return (the interest you avoid paying), but it is tax free and, unlike bonds, gilts or equities, it is risk free. You could lose half your money investing in bonds or equities, but you can't lose anything if you invest the money in paying off your mortgage.
Ask yourself this: would you increase your mortgage in order to invest in bonds or equities? If not, then it makes no sense to invest in them rather than pay off your mortgage.koru0 -
the irony of the Lindsell Train UK equity fund is that Hargreaves Lansdown is its 4th largest holding at 6.52% of the £286 million fund. A lot of money that should have some influence??0
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Rollinghome wrote: »I'd be interested in what a "notch" is. Doesn't sound very scientific.
The only arguments I've ever seen regards ITs being more risky is that they are allowed to use modest gearing and that discount/premium issues mean that the value can drift away from the NAV.
I slightly prefer ITs to OEICs, particularly for certain classes of assets; their close-ended nature means that they don't have to handle massive in/out flows, they typically tend to churn their portfolios less, they hold a dividend reserve to smooth yield, and they have lower fees.
The only ITs I hold currently are the more quirky birds, but I'd definitely consider using them for a dividend income portfolio.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Ask yourself this: would you increase your mortgage in order to invest in bonds or equities?
I did that once. It worked out well, but even though it was less than £20k, it scared me stupid on many occasions. Other than that one moment of madness, I've always been a pay it off fast kind of guy.
Oh hang on, I did it one other time, but that time was risk free (no, really!) and got me £12k tax free. Carpetbagging, how we miss you!
OK, can we just agree that this is a case of "do as I say, not as I do"?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
To expand on the explanations already given, here's a much more detailed explanation (written for US investors, but just as valid here): http://www.merriman.com/PDFs/FineTuning.pdf
A splendid link which explains all the principles in a compact and readable form. Thanks.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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