Fidelity MoneyBuilder World Index Fund A-Accumulation

melbury

I am still dithering about investing in this fund on a monthly basis. The charges do look very low, but then on closer inspection:


Quote:
Standard costs
Annual Management Charge(including service fee) 0.10%
Other Expenses 0.20%
Service and platform charge N/A
Refund of service fee N/A
Cost 0.30%

* Please note, 0.65% is the maximum you will be charged. Depending on how much you have invested with Fidelity, these charges may be discounted.


Where does the 0.65% maximum come from? I understood the total cost was 0.30%, what am I missing here?


Thanks.

Jegersmart

call Fidelity and ask.

J

Gromitt

Your missing the fact that there is a service charge of 0.65% IN ADDITION to the 0.20% and 0.10%, HOWEVER, this charge is only applicable to SIPPs.

marathonic

If you join through Quidco, you get £100 cashback - that's what I did and it'll pay the 0.3% TER for quite some time


http://www.quidco.com/fidelity-stocks-and-shares-isa/

NOTE: Initial lodgement of £500 required.

Hominu

Of course, if your investments tank, it'll also go towards that

marathonic

Hominu wrote: »

Of course, if your investments tank, it'll also go towards that

Yup!

Cashback paid after three months as far as I can see - where else could you get a £500 investment with 20% downside protection and 100% exposure to your selected fund?

I wasn't planning a S&S ISA at all until I built an emergency fund with a Cash ISA but couldn't pass up this offer so fired £500 into it....

Gromitt

You'll have to report back in 3 months you P/L.

I take it from your £500 comment that you have invested only in a single fund. Was it one from the essentials range?

Must admit, its the perfect push to get people to start investing. The other push being 2% savings interest rates.

marathonic

Gromitt wrote: »

You'll have to report back in 3 months you P/L.

I take it from your £500 comment that you have invested only in a single fund. Was it one from the essentials range?

Must admit, its the perfect push to get people to start investing. The other push being 2% savings interest rates.

Yeah, I just went for the UK All-Share. I'm not really bothered - with it only being a £500 investment. It's just that it'd be pointless not to go for it. The likelyhood of the FTSE All-Share being higher over the time I hold it is much higher than it being lower, let alone being over 20% lower.

I may add to it when my Cash ISA is fully funded (I'd ignore cash completely but need an emergency fund having recently used the fund to help purchase a house).... Rates are ridiculously low....

melbury

Gromitt wrote: »

Your missing the fact that there is a service charge of 0.65% IN ADDITION to the 0.20% and 0.10%, HOWEVER, this charge is only applicable to SIPPs.

I am not planning to invest through a SIPP, so presumably the charge will only be 0.30% max.

Thanks for that:T

melbury

One more quick query:o

With the pound being so low, how does this impact on a worldwide index tracker fund? Sorry to sound so dim, but presumably each pound invested wouldn't go as far as it would if put into a UK tracker fund?

Is my understanding correct?

Thanks.

bigadaj

melbury wrote: »

One more quick query:o

With the pound being so low, how does this impact on a worldwide index tracker fund? Sorry to sound so dim, but presumably each pound invested wouldn't go as far as it would if put into a UK tracker fund?

Is my understanding correct?

Thanks.

It's useful to be aware of exchange rates but their impact isn't as significant as you might think in your case. If you had, for example, a Japan fund then your profit, or loss, would be a combination of how the market in Tokyo has performed together with carrying pound yen exchange rate. This example might be pertinent as Japan has used devaluation of currency to boost their mainly export led economy, meaning that whilst the market performs well, for an external investor you only get part of the benefit as there are more yen to your pound.

Anyway back on topic, the difference is less than you would expect because the really big companies that make up most of the value in the UK market generally make much of their money overseas, this is true for banks, miners, oil companies, pharmaceuticals etc. they therefore earn much of their income in euro, dollar, yen etc so a weak pound might make their foreign earnings worth more on sterling.

Simplistically I wouldn't worry about this on a global fund, get some diversification and then consider this if you start to invest into single country/ region funds as it may then have an impact on your potential returns.