I'm soooo confused about fund platforms!!!

plarka

I was all set to get the HSBC all share index tracker and I'm stuck on this platform/fee thing. I thought the best thing was to go with a fund supermarket that didn't charge fees. But now it seems if they don't charge fees, they really secretly are? And that's going to stop the end of the year? So, what do I do now? Any websites that tells me the tops cheap good ones to use??

jem16

plarka wrote: »

I was all set to get the HSBC all share index tracker and I'm stuck on this platform/fee thing. I thought the best thing was to go with a fund supermarket that didn't charge fees. But now it seems if they don't charge fees, they really secretly are? And that's going to stop the end of the year?

Have you read this thread yet?

https://forums.moneysavingexpert.com/discussion/4039549

So, what do I do now? Any websites that tells me the tops cheap good ones to use??

The problem, as has already been explained to you, is that what is cheap now may not be cheap once all the platforms change over. As yet no-one knows.

If you only want an HSBC fund perhaps the best bet just now is to buy direct from HSBC.

grey_gym_sock

yes, i'd go direct to HSBC if all you want is their trackers.

plarka

Is it unwise to put only £500 into a tracker, if fees are taken off each year? If I read correctly, one platform was charging £42 a year, and in 10 years almost half my money would be gone.

Gem16, I tried to read that thread, but that's what made me even more confused! All I understood was that someone suggested what I was thinking, that investing small amounts wouldn't be smart because it would get eaten up by fees, and maybe it's better to get it direct.

I guess no one really knows!

ETA I can't figure out how to get it on HSBC'S website.

sabretoothtigger

No reason not to go direct, I've done that before. The platforms try to promise they can be cheaper but if they are going to do a flat fee thats obviously terrible on low amounts

42/500 = 8.4% charges plus TER . You'd be better off burning it


I always preferred L&G and they often do special deals, never had fixed fees in the past and I dont think they would now

pqrdef

sabretoothtigger wrote: »

I always preferred L&G and they often do special deals, never had fixed fees in the past and I dont think they would now

They charge percentages? That means people with a lot of money are (spit) cross-subsidising people with less. What are they, socialists or something? Shocking. Should be banned.

bigadaj

pqrdef wrote: »

They charge percentages? That means people with a lot of money are (spit) cross-subsidising people with less. What are they, socialists or something? Shocking. Should be banned.

I think socialism is supposed to worth other way around.

Jim431

Have you considered Exchange Traded Funds (ETF's).
They trade like shares and have an annual fee. Usually less than 0.5%.

http://funds.ft.com/uk/Tearsheet/Summary?s=XASX:LSE:GBX
http://funds.ft.com/uk/Tearsheet/Summary?s=LFAS:LSE:GBX

Always make sure ETF's trade in UK pounds as there may be similar funds in other currencies.

sabretoothtigger

pqrdef wrote: »

They charge percentages? That means people with a lot of money are (spit) cross-subsidising people with less. What are they, socialists or something? Shocking. Should be banned.

In these days of computer admin, the idea is you pay in proportion to the benefit you receive. But yea rich guys are useful like that, dont knock them. Lots of things would not be possible if not in this way


Anything below 10k on a deal is uneconomical to many companies if they dont accumulate some sort of benefit from mass of numbers or if that fails, standard charges

Always make sure ETF's trade in UK pounds as there may be similar funds in other currencies.

Its the underlying assets which matter really. Some funds will hedge foreign currency but most do not now

coastline

Jim431 wrote: »

Have you considered Exchange Traded Funds (ETF's).
They trade like shares and have an annual fee. Usually less than 0.5%.

http://funds.ft.com/uk/Tearsheet/Summary?s=XASX:LSE:GBX
http://funds.ft.com/uk/Tearsheet/Summary?s=LFAS:LSE:GBX

Always make sure ETF's trade in UK pounds as there may be similar funds in other currencies.

Do these two ETF's have distributor status...which as far as I understand means your tax situation is the same as UK share...any gains CGTax...dividends taxed at source..

Jim431

coastline wrote: »

Do these two ETF's have distributor status...which as far as I understand means your tax situation is the same as UK share...any gains CGTax...dividends taxed at source..

Don't know what "distributor status" means so unsure if this is the answer that you are looking for...

Not had experience with FTSE all-share ETF but for ISHARES FTSE 250 and ISHARES FTSE 100 the dividends are paid to me gross and are listed under the Non-UK Equities section on my tax certificate.

Don't understand why that should be but Foreign Dividends under £300 Net can be included as if UK Dividends on the UK tax return.

They trade just like shares in all other respects.

Also I have never actually seen the annual fee charged to me in a statement. Probably included in the unit price.

Update:
Just found a reference to "distributor status":

http://www.ft.com/cms/s/2/bbf1d820-8b7e-11df-ab4d-00144feab49a.html#axzz1z5jUOoOV

All the ETFs mentioned are shown as "Income treatment - Income" so that means any gains are not treated as Capital Gains for tax purposes.

But the FTSE100 &250 also say "UK Distributor/Reporting Status - Yes/Yes" so that means any gains are treated as Capital Gains for tax purposes.

Not sure about the all-share:

http://www.etf.db.com/UK/pdf/EN/factsheet/factsheetLU0292097747_2012_05_31.pdf


Now I am confused !!