Tracker?

Rollinghome

Aretnap wrote: »

IIRC rather than just charging a flat 0.35% pa, they're introducing a minimum charge of £45. This will make them more expensive for people with relatively small portfolios, and very expensive indeed for someone with £800 to invest.

Strictly speaking it doesn't seem to be a minimum charge of £45 - except for those investing up to £7500. So on £7500 you'd pay £45 but on £7500.01 you'd pay less, just £26.25. Which is very weird. See https://www.fidelity.co.uk/static/pdf/personal/guides/fidelity-fees-guide.pdf page 6.

delmar39

Rollinghome wrote: »

Strictly speaking it doesn't seem to be a minimum charge of £45 - except for those investing up to £7500. So on £7500 you'd pay £45 but on £7500.01 you'd pay less, just £26.25. Which is very weird. See https://www.fidelity.co.uk/static/pdf/personal/guides/fidelity-fees-guide.pdf page 6.

Thanks. It's a pain if you have less than £7,500 which I do. Looking at switching to Cavendish (at the research stage at the moment not something I've done before so lacking experience!).

Rollinghome

delmar39 wrote: »

Thanks. It's a pain if you have less than £7,500 which I do. Looking at switching to Cavendish (at the research stage at the moment not something I've done before so lacking experience!).

Switching to Cavendish is effectively just a change of agency so should be very quick and easy. You shouldn't see any difference and will still be able to login directly to Fidelity without ever seeing any reference to Cavendish other than to confirm them as your agent when you trade.

You might, or might not, have very slightly different facilities. When I used Cavendish, I seemed to have the full Fidelity features but my wife's was slightly different and missing the X-ray tool.

delmar39

Rollinghome wrote: »

Switching to Cavendish is effectively just a change of agency so should be very quick and easy. You shouldn't see any difference and will still be able to login directly to Fidelity without ever seeing any reference to Cavendish other than to confirm them as your agent when you trade.

You might, or might not, have very slightly different facilities. When I used Cavendish, I seemed to have the full Fidelity features but my wife's was slightly different and missing the X-ray tool.

Thank you for the advice, I guess they rely on inertia. My one and only reason for going with Fidelity was the low charges. So it's switch or find the additional to go above £7.5k! Currently browsing the Cavendish website...

jimjames

delmar39 wrote: »

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.

I'm not sure choosing a tracker or other investment purely based on being the cheapest is a great idea. The cheapest for your objectives maybe but cheapest tracker could mean you just get a UK tracker at 0.06% pa whereas a global tracker at 0.2% may be a better more balanced investment even though the charges are higher.

delmar39

jimjames wrote: »

I'm not sure choosing a tracker or other investment purely based on being the cheapest is a great idea. The cheapest for your objectives maybe but cheapest tracker could mean you just get a UK tracker at 0.06% pa whereas a global tracker at 0.2% may be a better more balanced investment even though the charges are higher.

I agree, I was pointing out the different charges based on the OP being new to investing. My Fidelity Index US Fund is my current top performer at 0.08 on going charge (the Fidelity UK Index being the cheapest at 0.07 on going charge). I appreciate that the charge has nothing to do with performance but low charge can outperform the higher charged trackers and vice versa. Also, and as a result of research and advice on here switching to Cavendish waives the £45 for investments less than £7,500 which Fidelity will charge December 2015 onwards.

dunstonh

...and a multi-asset fund at 0.1% p.a. more is likely to be better than a single sector tracker.

BTW, Cofunds have the L&G multi index funds available with class C (superclean) which is 0.24%.

Spurs_2015

Thanks for all the responses especially the one explaining the new charges Fidelity are bringing in as it seems investing a small amount would have amassed a lot of extra charges.

Spurs_2015

Sorry another question, I am looking at Vanguards Life Strategy fund am I right in thinking the less equity ones (20% or 40%) are less risk than higher equity (80% or 100%)?

Paul_Hyland

look for a passive multi asset fund with a low OCF and low tracking error. Fidelity may well be the cheapest presently.