FTSE tracker

xyz123

hi

one of my friends want to invest long term in a FTSE tracker (his decision!). can someone recommend or give idea on any cheap tracker funds outside ISA?

ta

brasso

xyz123 wrote: »

hi

one of my friends want to invest long term in a FTSE tracker (his decision!). can someone recommend or give idea on any cheap tracker funds outside ISA?

ta

Instead of relying on anecdotes and people's favourites, check out the actual performance on Trustnet or Hargreaves Lansdown (etc). One of the main things to check is what charges are made -- which shouldn't be much on a basic tracker.

FWIW, I have a Vanguard FTSE tracker and IUKD (high yield FTSE tracker), as well as a Vanguard small-caps tracker. (Not necessarily recommendations, just FYI only.)

masonic

Well you'll get a different answer both in terms of who to invest through and which type of investment to buy if he want's to invest £50 a month vs. £20k in one go, so a bit more information is required. A large lump sum and/or infrequent top ups might lead him towards an ETF, whereas smaller or more regular contributions would be more cost effective through an OEIC.

The next decision is which platform should he use to hold the investment. Snowman's spreadsheet will give you an idea of the cheapest platform based on what your friend wants to do.

He will also then need to select the best investment, which for trackers means the lowest cost fund (after checking that the past performance tracks the index closely). This will, to some extent, be influenced by and influence the choice of platform, so a few options may need to be explored, but cheap high quality trackers are available almost everywhere.

Kendall80

Based on past performance the FTSE 250 would appear to be a good choice. I believe HSBC do a low cost 250 tracker.

dunstonh

one of my friends want to invest long term in a FTSE tracker (his decision!).

Which FTSE index does he want to invest in?

Some of them are quite poor. Some are quite good but none are really designed to be invested in isolation.

xyz123

Thanks for ur reply. I will look at the spreadsheet.

He wants to invest either ftse 100 or 250. He has inherited about £5k and has low risk appetite (high enough to invest in share market but not enough to invest in individual shares). Looking to invest for 4-5 years as he has other savings for any urgent requirements. Would appreciate any other suggestions on what to invest if people are ok to share their expertise or knowledge .

Thanks

Ryan_Futuristics

1 word, 2 parts

1st part



2nd part

ColdIron

Knotty Capri?

brasso

ColdIron wrote: »

Knotty Capri?

I get the "would not" (wood knot), but... ?

Porcupine

Would not a(f)Ford?

InvestInPoker

mega lols.