getting the timming right for index funds

Shaolin_Monkey

The 0.35% p.a. is what TD will charge you to hold the fund on their platform. It is in addition to Vanguard's management charge. The funds have their own management charges, which vary depending on the fund. Vanguard LifeStrategy 80% is currently 0.33%, the Vanguard FTSE UK Equity Income Index fund is currently 0.25% (both according to Trustnet). Vanguards' management charge will be deducted from the unit value of the fund.

patoli

Thank you for all your replies!

I've been looking but cannot find the Vanguard LifeStrategy 100% Equity or other Vanguard lifestrategy cheaper than with TD services,

Even with the new august charge:

ie; £0.35 (TD) +£0.35 (vanguard) so £0.70%

If anyone knows of a better place, thank you for letting me know

Once again Ta very much

Shaolin_Monkey

Charles Stanley Direct seems to be cheapest for portfolio's under £20k (0.25% platform fee). For over this amount some of the platforms charging flat fee's (e.g Sippdeal - £12.50 per quarter) can work out cheaper.

chris1

patoli wrote: »

Thank you for all your replies!

I've been looking but cannot find the Vanguard LifeStrategy 100% Equity or other Vanguard lifestrategy cheaper than with TD services,

Even with the new august charge:

ie; £0.35 (TD) +£0.35 (vanguard) so £0.70%

If anyone knows of a better place, thank you for letting me know

Once again Ta very much

Unless you have more than £6858 in each fund, in which case HL's £24 p.a. would be cheaper...

Perelandra

patoli wrote: »

Thank you for all your replies!

I've been looking but cannot find the Vanguard LifeStrategy 100% Equity or other Vanguard lifestrategy cheaper than with TD services,

Even with the new august charge:

ie; £0.35 (TD) +£0.35 (vanguard) so £0.70%

If anyone knows of a better place, thank you for letting me know

Once again Ta very much

Based on current charges, for an £11,520 value, Hargreaves L would work out slightly cheaper (£2/month platform fee).

EDIT: cross-post with Chris above.

patoli

Thank you for these :j

By the way, I plan to keep investing into an ISA (shares) year after year from now one, is it a good idea to diversify the companies you work with, by companies I mean , TD S, HL and so on, or it does not make any difference, as even if they would go bust the money is in the fund in anycase?

I would presume that in the case of the fund itself, I would HAVE to diversify the fund holders, because if Vanguard would go bust I WOULD then loose all my money or is this not correct???

Ta very much

Shaolin_Monkey

Vanguard are unlikely to go bust given the low risk nature of their business, but if they did the assets held within the fund would be safe, as they are actually held by an independent depositary (State Street Trustees). The likelihood is their funds would be taken over by a competing firm and continue as before.

Asset managers have got into difficulties in the past (e.g. New Star or Gartmore) and investors have not lost their money. Both of these firms funds were taken over by Henderson Global Investors if I recall correctly.

sabretoothtigger

^^ I have a relative with a Barings unit trust and the performance has been stellar even after the company went bust!
I think ING is the actual manager now though its still called Barings, not sure but anyway it doesnt matter that much unless you loved that particular manager in which case you risk their loss but not your capital except through normal investment risk anyone has in any vehicle


Invest every month for at least year and have that attitude that you will buy many more times then just once. To only hold one date as the best is lottery ticket investing.
Of course you can sell more then once also, stocks often exceed expectation on both sides its bonds where the fixed set thinking might be more apt ?

patoli

sabretoothtigger wrote: »

Invest every month for at least year and have that attitude that you will buy many more times then just once. To only hold one date as the best is lottery ticket investing.
Of course you can sell more then once also, stocks often exceed expectation on both sides its bonds where the fixed set thinking might be more apt ?

Not to sure I understand this last point though, do you mean by this, dollar averaging? (a little confused) (shame they took away the confused smiley from the list)

Anyway thank you for the advice!:T

atush

Investing monthly is called Pound Cost averaging (although Dollar could suit as well). Google it.

when you buy this way, you can mitigate volatility as when prices are falling your monthly investments buy more units for the same money. This can give you a big boost when prices recover. So it keeps yo from getting upset if you see prices falling.