Halifax ISA Investor Fund Charge

VladDracula

I am trying to take advantage of the current low stock market value by topping up my existing Halifax ISA investor funds. I currently have 5 sub funds; International Growth Shareclass F, Special Situations F, UK Growth Fund F, UK FTSE All Share F and Uk FTSE 100 B. I think these products are all ongoing otherwise how could i invest?

The annual management charges for these accounts are between 1% and 1.25% which i assume would be similar whoever i invested with so have never considered investing elsewhere before this one off lump sum payment came into the picture.

It seems unfair to be charged an adviser fee of £500+ for topping up funds i am already invested in. Does having 40k or 55k really effect the management of my funds?

I am no expert on the stock market and am not really looking to invest in specific companies/shares but just the FTSE 100 in general, which seems less risky given how low it currently is.

Are there other FTSE 100 trackers out there without the initial one off charge to 'buy in'?

I do also have a seperate Personal Investment Plan (PIP) with Halifax, i wonder whether this would have the same entry fees for new investments?

VladDracula

I have had this ISA investor for 13 years and haven't paid one until now. But i don't pay a fixed £12.50 p/a that i am aware of. I pay annual management charges of between 1% and 1.25% which seems reasonable.

grey_gym_sock

perhaps the charge for advice used to be covered by the bid-offer spread, and the difference is that they have to disclose it separately now.

anyway, usually nowadays it's best buy funds via a "platform" which carries a broader range of funds. the charges for the platform and the funds are now specified separately (and the typical fund charges are lower than they used to be). most funds no longer have initial charges - a few may have a fraction of a percent.

on-going charges (TER or OCF) for the fund itself might be 0.1%-0.2% for a tracker, or 0.75%-1% for an actively managed fund.

the size of your investments doesn't affect fund charges, but can affect platform charges. some platforms charge 0.25% per year (of the value of your investments), and nothing for buying or selling funds. that is a good deal for smaller amounts invested; but with larger amounts you might be better off with a flat fee platform. e.g. halifax share dealing (a different part of halifax from the bit you're using now) don't charge any annual percentage, but charge £12.50 per year for having an ISA, plus £12.50 each time you buy or sell a fund.

BLB53

Why not consider a diy isa via Halifax Share Dealing and invest this yrs allowance into Vanguard Lifestrategy 80 index fund. Initial fee to purchase fund is £12.50 then a further annual platform fee of £12.50 - annual charges £25 plus annual fund charges of 0.24%.

This is a simple low cost globally diversified option which should give you a decent outcome over time.

oldfella

just looking for Vanguard on HSD and cant find it, is there a method ?

VladDracula

Thanks for all the advice.

I think i will invest in a DIY self select stocks and shares ISA.

Researching the various ones i came across this article that suggests Halifax FTSE trackers are the worst on the market...oh dear!

http://www.telegraph.co.uk/finance/personalfinance/investing/10580063/The-500000-fund-investors-failed-by-trackers.html

It sounds a bit obvious but is the only available FTSE tracker through Halifax a Halifax FTSE tracker or can you get Scottish Widows/Scottish Mutual/M & G trackers etc through them too.

If not, may just get the equivalent FTSE tracker through HSBC or Santander which i have current accounts with.

noh

If you invest through the Halifax Sharedealing self select ISA the list of funds available can be found here:-
http://www.halifaxfundscentre.co.uk/

jimjames

Quick tip, generally avoid any banks selling financial investment products. I think Halifax sell different brands through their site but most others only sell their own (poor) products

dunstonh

If not, may just get the equivalent FTSE tracker through HSBC or Santander which i have current accounts with.

Buying a single sector tracker fund as your sole holding is bad investing.

Generally, buying bank branded investments is poor quality investing. Banks tend to be low quality and/or expensive.

VladDracula

How many funds would you advise investing in with this new £15,240 amount?, baring in mind i am already invested in 5 other funds with my ISA Investor.