Advice me: HSBC "Fund of Fund" Investments

madhusudhan

One of the things I've on my list is to utilize remaining 4k of ISA (Cash ISA has been filled). HSBC Fin Planning Manager advocated that I can invest into "Fund of Fund" investment. Apparently this funds were introduced last year only and he had shown the grown of around 10.5% for last year.

So my questions are:
1. Does any one invested in this funds?
2. Do you think I should invest in Stocks and Shares ISA and if yes, is HSBC any good?
3. Or simply I invest monthly into my savings account?

Any advice is highly appreciated.

Thanks
/M

blinko

it will probably incorporate several different HSBC funds or other funds and i think you will probably have to pay a higher management fee due to the extra layer other than that i cant help you any further

dunstonh

1 - No
2 - No
3 - No

These funds were introduced in Feb 2003 so there is a 27 months performance to review.

If you are willing to invest in equity style investments then sticking it in a savings account is pointless.

The HSBC global fund of funds matches the sector average almost to the penny. The income fund of funds is a cautious managed fund and has performed below sector average since launch, although mirrors the sector average most of the time.

Mangaged funds are dogs and most bank funds are too. Of course your HSBC tied advisor would be recommending these as banks love managed funds like these.

You can do a lot better investing in independent fund managers in a fund supermarket. Its cheaper and you have a range of hundreds to choose from instead of a handful.

madhusudhan

What is the pandit's opinion on FD's self select ISA? I really want to use up my tax free stock and shares part of ISA. Please advise.