Pension Beginnings

PoorDave

SIPP type question really.

If I am thinking of going down the DIY route, using a SIPP, filled with funds, but with a 1.5% p.a. management fee, how does this work in practice?

For instance if i buy and sell frequently am I penalised? Looking for general answers really.

dunstonh

For instance if i buy and sell frequently am I penalised? Looking for general answers really.

Depends on the provider you use and the funds you buy.

purch

if i buy and sell frequently am I penalised?

Most Funds will have a Bid/Offer spread...plus an initial charge and not all discount brokers can discount every initial charge down to zero.

For example Jupiter always have a spread...and I don't think anyone discounts their initial charge to nowt very often.

Also Funds have different valuation points so that could impact on the prices you get, plus your sell and buy orders might not be able to be filled the same day so you could be out of the market when something happens ( could be a bad or a good thing however )

Personally I don't think that investing in Funds is really suited to 'frequent' chopping and changing. The reason I would choose any fund would be long term growth or income prospects based on a lot of research into history, investment style etc etc.

Depends on the provider you use and the funds you buy

If you want to trade frequently you will be paying away the spread all too often........the fund managers will be happy though !!!

dunstonh

There are a number of providers with no charges on switching. It is less likely in a SIPP than a fund supermarket pension, personal pension or stakeholder though (where they is usually no charges.

Personally I don't think that investing in Funds is really suited to 'frequent' chopping and changing.

Depends on the provider. Also, what is frequent. Annual rebalancing should be the main occurance so its not that frequent.