Vanguard Life Strategy

chockydavid1983

Does the 0.1% initial charge basically apply to all the money I ever add to the fund? So my initial payment and future monthly payments? Also, is there any minimum opening deposit?

Thanks,
Chris.

ColdIron

Yes it does
Minimum opening will vary by platform, some require as low as £25 with monthly contributions

badger09

chockydavid1983 wrote: »

Does the 0.1% initial charge basically apply to all the money I ever add to the fund? So my initial payment and future monthly payments? Also, is there any minimum opening deposit?

Thanks,
Chris.

Just so you're clear, all the VLS info you need is here

https://www.vanguard.co.uk/uk/portal/investments/all-products?productType=indexFund

JohnRo

chockydavid1983 wrote: »

Does the 0.1% initial charge basically apply to all the money I ever add to the fund? So my initial payment and future monthly payments? Also, is there any minimum opening deposit?

Thanks,
Chris.

Make one purchase of a thousand or a thousand purchases of one you'll pay exactly the same 0.1% dilution levy, assuming no transaction fees apply and all else being equal.

Percentage charging is more of a tax than a fee.

Jsscmm

JohnRo wrote: »

Make one purchase of a thousand or a thousand purchases of one you'll pay exactly the same 0.1% dilution levy, assuming no transaction fees apply and all else being equal.

Percentage charging is more of a tax than a fee.

As the dilution levy goes towards the costs of buying new shares spread amongst the existing holders, arguably a thousand purchases of 1 would mean you were getting a little of your own levy back, as by the second purchase onwards you are an existing holder.

But that is really splitting hairs with dancers on top of a pin.

chockydavid1983

Haha awesome, I never thought of it like that! :-)

JohnRo

Jsscmm wrote: »

As the dilution levy goes towards the costs of buying new shares spread amongst the existing holders, arguably a thousand purchases of 1 would mean you were getting a little of your own levy back, as by the second purchase onwards you are an existing holder.

But that is really splitting hairs with dancers on top of a pin.

You may well have a point, you'd have to do some astronomical calculations though to work out the net benefit of the levy to existing holders as it isn't afaik designed to act as a bonus for existing holders of the fund, it's there simply to cover the buying and selling transaction costs so existing holders don't have to.

Do we know if the levy is actually ploughed back in or is it held separately as a trading fees slush fund?

roxy28

roxy28 wrote: »

Ok thanks.

I opened the ISA 2 weeks ago and thought once that was open the fund can be bought and ready to go instantly, newbie i am to fund buying lol.

I now have the fund open, i have some money in my ISA and i want to add to the fund, is it a case of just buying more now, and that will be automaticaly added to my ISA. VLS 60 fund.

badger09

roxy28 wrote: »

I now have the fund open, i have some money in my ISA and i want to add to the fund, is it a case of just buying more now, and that will be automaticaly added to my ISA. VLS 60 fund.

When logged into your ISA you should be given options such as 'buy more' & 'sell' in relation to your existing holdings. Simply click on 'buy more' and enter the amount you want to invest.

If you want to invest in something else, there should be a search facility where you enter the fund/share name.

roxy28

badger09 wrote: »

When logged into your ISA you should be given options such as 'buy more' & 'sell' in relation to your existing holdings. Simply click on 'buy more' and enter the amount you want to invest.

If you want to invest in something else, there should be a search facility where you enter the fund/share name.

OK thanks.
Yes i clicked on buy more and it went through ok. just working myself around my dashboard, ie options etc.
There is something i am not sure about yet, where it says your fund basket , weight of the fund and a few other terms, mentions the weight is 5%.