We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Tracker?

Spurs_2015
Posts: 33 Forumite
I am totally new to investing in anything other than an ISA and would like to start off sensibly, while its an attractive option to pick some shares myself I don't have either enough money or the experience. I have been looking into trackers and I like the look of the one which tracks the S&P 500, do you think this is a good option for a beginner with a limited amount of start up funds (£800) but which I can drip feed some each month into?
0
Comments
-
Why not go with a global tracker instead? Something like the Vanguard Lifestrategy fund will diversify for you - no effort needed.0
-
I have been looking into trackers and I like the look of the one which tracks the S&P 500, do you think this is a good option for a beginner with a limited amount of start up funds (£800) but which I can drip feed some each month into?
No. Its poor quality investing as it is single sector. It is high risk (40% loss potential in 12 months) and way above the typical tolerance of a new investor and £800 would suggest you dont have much to spare.
Multi-asset solutions are a better option for smaller values.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks, I assume the Fidelity Index World Fund is something I Should be looking into then for diversification?0
-
You mention the Fidelity Index World Fund have a look at their range of trackers to compare charges. Why not start with their (or other provider) lowest charge tracker and add more as you go to spread the risk. Then look at other options when you have your foot on the ladder so to speak.
Fidelity are changing the way they charge from December 2015 so important to look at this.
https://www.fidelity.co.uk/investor/tracker-funds/our-range.page0 -
-
fun4everyone wrote: »What are they changing exactly? I had a look at the link and specifically the "charges" tab but could see nothing about forthcoming changes.0
-
I assume this will also apply to Cavendish online, who use Fidelity? That would be annoying as I've literally just started to drip feed so would probably have to switch platform :-/.
Chris.0 -
AFAIK -£45 charge will not apply to Fidelity via Cavendish Online .
Cavendish platform charges are 0.25% in total rather than Fidelity's 0.35%
(For very large portfolios Fidelity drops to 0.2% making the direct route cheaper)
http://www.cavendishonline.co.uk/investments/our-service/0 -
That's true, thanks KDH, I forgot that Cavendish wasn't also 0.35%. Hopefully it will stay at 0.25% for now.0
-
fun4everyone wrote: »What are they changing exactly? I had a look at the link and specifically the "charges" tab but could see nothing about forthcoming changes.
This has been covered by others, but being as though you asked here you go:
Service fee
This covers the costs of everything the administrator of your investments offers you. At Fidelity, the service fee is typically at 0.35% of the value of your holdings (or less if you have more invested with us). This fee reduces to 0.20% if you have £250,000 or more with Fidelity Personal Investing. In addition, we won't charge an annual service fee on any assets above the level of £1,000,000.
From December 2015, the service fee will be a flat rate charge of no more than £45 (and £25 for Junior ISA or Junior SIPP), if the value of your portfolio is less than £7,500.For full details please refer to our Doing business with Fidelity document.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.7K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards