New to investments - monthly payments

da4

Hi,
We are both new to investments and don't really understand most of it.
We have a small pot of £2k and we are going to add £100 a month. We did see that maybe a stocks and shares ISA is the way to go as we have regular savings accounts already which are max per month.
Because we don't really understand gold, shares etc... we where looking at a managed fund (unless there is a better option??), which i have found a couple....
One is Halifax but i've also found one from nutmeg. Is one of these my best option or should i look at another provider?
Thanks

armchaireconomist

Vanguard Life strategy 80% is a good starting point

Eco_Miser

Have a read around http://monevator.com/
Lots of info, including a list of the available brokers/platforms on which to buy and keep your investments. Start with the About and Best of links (top right).

da4

charge for the fund looks to 0.22% per year with Hargreaves landsdown. Does this sound right? Seems very cheap? Or is there another charge i should be aware of?

Zippeh

HL also have a platform charge.

http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

badger09

da4 wrote: »

charge for the fund looks to 0.22% per year with Hargreaves landsdown. Does this sound right? Seems very cheap? Or is there another charge i should be aware of?

YES

0.22% is the fund charge. Hargreaves Lansdown will also charge you 0.45% to hold on their platform. For small amounts that doesn't make much difference, but can start to deplete your returns on a much larger investment.

I suggest having a read around Monevator. Decide what you want to invest in, then look at where would be best to open your S&S ISA.

da4

I was hoping for a simple one to invest in and leave for several years lol i don't understand this ETF, high yield. It looks like i'll be a passive investor.

da4

I've also found a virgin money one with a flat 1%

Superscrooge

1% is very expensive for a passive fund

There are lots of much cheaper alternatives. eg. Fidelity trackers charge from 0.06% to 0.21%

https://www.fidelity.co.uk/investor/tracker-funds/our-range.page

da4

Superscrooge wrote: »

1% is very expensive for a passive fund

There are lots of much cheaper alternatives. eg. Fidelity trackers charge from 0.06% to 0.21%

Thank you. I will look at the UK index. I was also going at the Vanguard recommended earlier but i was unsure if i just sit on that or have to be a lot more active?

polagon

Is this money going to be invested over a long time? And with no plans to stop or withdraw it?
I personally invest in VL80 with Cavendish Online. Which is using Fidelity's platform. It's cheap, easy to use and best with these small monthly payments you don't think too much about it.

VL as you can easily read about on here or through a simple Google search is a decent enough option for you guys. And depending on time and risk averse you can go up and down the scale 20% to 100% equity allocation. But do pick the acc fund version.