BestInvest v IFA v DIY

whambamboo

EdInvestor wrote: »

I'm interested to hear how "momentum" type investors rate the various discount brokers/fund supermarkets re charges.

Are switching charges an issue?

HL doesn't have any switching charges. OEICs work out slightly cheaper if you don't hold for a long time as there's no bid/offer spread as there is with UTs

shokadelika

EdInvestor wrote: »

I'm interested to hear how "momentum" type investors rate the various discount brokers/fund supermarkets re charges.

Are switching charges an issue?

Well if switching using Cofunds and If I were lucky to have a £100K portfolio then each switch at .25% would cost £250 say ten switches a year it would mount up !
You might be better off trying to find a similar performing fund for your switch and using H-L that had a zero initial charge;)
Am intereseted in what is classified as a "momentum" investor Ed ?

dunstonh

Well if switching using Cofunds and If I were lucky to have a £100K portfolio then each switch at .25% would cost £250 say ten switches a year it would mount up !

Not many will do 10 switches though. And the 0.25% is on the amount.

its better to pay 0.25% (on the value switched) to keep the portfolio within your risk profile and balanced then not to pay and watch it go out of sync over the years. Although once a year should be fine for most and even then, it wont always be every fund but just the difference. i.e. if a fund is 4.2% of the portfolio but should be 4%, then you just switch 0.2% of it.

HL are not free on switches on every fund so it shouldnt be an automatic assumption.

whambamboo

dunstonh wrote: »

Not many will do 10 switches though. And the 0.25% is on the amount.

its better to pay 0.25% (on the value switched) to keep the portfolio within your risk profile and balanced then not to pay and watch it go out of sync over the years. Although once a year should be fine for most and even then, it wont always be every fund but just the difference. i.e. if a fund is 4.2% of the portfolio but should be 4%, then you just switch 0.2% of it.

HL are not free on switches on every fund so it shouldnt be an automatic assumption.

On which funds does it charge for switching? It charges an AMC on certain funds that don't pay commission, but which funds charge for switching?

dunstonh

On which funds does it charge for switching?

I had a quick peek over the HL site but couldnt find anything one way or the other. It doesnt mention switches being free or charged and it doesnt mention if its dont on published initial charge or not. (at least not that I could find)

Not all the funds on HL have no initial charge. So, if you switch into one of those you could face a small charge there. However, lets be honest, its only a small amount (unless you happen to pick a soft closed fund).

carnet

HL do not charge for switching.

But you do have to pay the normal discounted IC for the fund you are switching into. In this respect, in cost terms, it is no different to selling your present fund and buying a new one after an interval.

While a lot of funds are discounted to zero IC, many have a discounted IC ranging from 0.25% to anything up to 2% ( excluding those which are soft-closed).