Fund of funds hide fees

System

Mostly I'm using 5% current accounts and regular savers for cash

System

Another reason for using isa is that its tax credit efficient, outside of isa im only allowed to make £300 a year before it affects them, I chose an accumulation fund rather than an income one as dividends would count towards this £300 limit

bigadaj

MatthewAinsworth wrote: »

Nah s&s isa, pension is DB, I'm simply looking for an alternative to mortgage overpayments that performs better and gives me liquidity, and maybe can use for early retirement or wedding

Can't find that specific fund in trustnet, did you buy through a bank or insurer?

The closest I could find seems to be a multi manager fund of funds with fees of 1.63%, not cheap but I'd expect that to include all fees for the sub funds as well.

Seems as though for what you want to achieve you'd be better with vanguard lifestrategy, black rock consensus, or l &g multi index, the first two are around 0.3% fees, with the last at 0.5% but is more actively managed and holds property. You'd normally pay an extra 0.25% or slightly more to hold on a platform.

bigadaj

MatthewAinsworth wrote: »

Another reason for using isa is that its tax credit efficient, outside of isa im only allowed to make £300 a year before it affects them, I chose an accumulation fund rather than an income one as dividends would count towards this £300 limit

What tax credits for you mean, is this working or child or something else?

In terms of taxation of dividends it doesn't matter whether you hold funds as accumulation or income, you would still be liable for tax on them in either format, though not in an isa. Though there's also the new dividend allowance which means you can earn £5k tax per year without being taxed.

grey_gym_sock

MatthewAinsworth wrote: »

Another reason for using isa is that its tax credit efficient, outside of isa im only allowed to make £300 a year before it affects them, I chose an accumulation fund rather than an income one as dividends would count towards this £300 limit

i don't know how tax credits work, but an accumulation fund, when held outside an ISA, does give you some taxable income (even though it isn't physically paid out), just the same as income fund does. inside an ISA, there is no taxable income, regardless of fund type. so if tax credits are based on your taxable income, an ISA is useful. though if it's affected by the amount of capital you have, capital inside an ISA still counts.

System

Bigadaj - via halifax, 0.69% fee which i now assume is total

Child tax credits and thats why i use an isa. The £5k is taxed at 0% so still contributes to my £300 'other income' alliwance so Im hoping it wont via an isa

Grey gym - total savings not a factor

Potentially you could have quite a stonking s&s isa accumulation and still be on tax credits, its just I never have more than £500 a month to save

dunstonh

Hmmm have read that fettered does better due to lower costs and insight into portfolios

although if the fund house has a poor range or an expensive range, then fettered would not be a good option.

System

Well I suppose are all FTSE all share trackers roughly the same? If fees are all included it looks alright

bowlhead99

FTSE all share trackers are not all the same. For example, Virgin do one that has running costs of 1% a year. But others do them starting at closer to 0.1% (plus platform/broker fee). And the accuracy (tracking error) with which they track the index, will vary depending on how effectively they are put together. But broadly it doesn't matter as long as it's cheap, because the 'errors' will not always be negative (unless it's really bad at its job).

A tracker should be very cheap way to get exposure to markets and really only cost only a small fraction of a percent. If the tracker is a decent portion of the total assets, yet your overall fee on all of the assets is close to 0.7%, there is a lot in the middle for the middleman to get rich. Of course, you also have other funds in your mix, which are not trackers and would be more expensive, dragging up the overall cost.

System

I'll have to check whether the other ones account for much of that 0.7ish%, and whether it can be beaten