Best index tracker funds?

1m2m9m4

Just started using H&L S&S - investing the minimum £25 per month to begin with.

Best funds?

Not picky on income / accumulation / growth etc. or timescales (i.e. no rush to withdraw).

Thanks

bowlhead99

What index(es) do you want to track?

For £25pm you can only practically invest in one fund per month and focusing on one specialist index is going to give you a lopsided and volatile portfolio. So, it should be a broad index covering lots of developed and emerging stock markets with a good mix of company sizes and industries invested in.

The most obvious solution would be the Vanguard FTSE Global All Cap Index - Accumulation. This is available on HL with an ongoing charges figure of 0.24% a year on top of the platform fee that HL charge. So, investing £25 a month for a year building up to £300 of total investment over 12 months, your average balance will have been somewhere between £150-175 with total overall costs of about a pound.

Usually I'd recommend not just investing in a single index but instead in a generalist mixed asset fund. However, at that level of investing any extra percent earned or lost is only a couple of quid per year. So it's not worth considering your allocation between different countries, asset types etc, nor shopping around for something with slightly lower costs. The FTSE Global All-Cap Index would be absolutely fine.

1m2m9m4

Thanks for the advice.

I was doing some research and was thinking a UK FTSE 100 index, just to keep things simple.

Perhaps I should consider investing some more each month - how much would you suggest minimum to ensure I have a more balanced portfolio? Or how many funds? I'm new to investing so didn't want to invest too much until I get my head around it.

dunstonh

Doesnt really matter that much. A single multi-asset fund should be fine,

I was doing some research and was thinking a UK FTSE 100 index, just to keep things simple.

Pretty much one of the worst index's in the western world. Simple but rubbish.

Or how many funds?

one multi asset fund. Although as said above, it doesnt really matter too much until your have a lot more invested.

Sean473

1m2m9m4 wrote: »

Thanks for the advice.

I was doing some research and was thinking a UK FTSE 100 index, just to keep things simple.

Perhaps I should consider investing some more each month - how much would you suggest minimum to ensure I have a more balanced portfolio? Or how many funds? I'm new to investing so didn't want to invest too much until I get my head around it.

How much will you be investing in total? Is it 100?

If so

25 on HSBC American Index C Income/Acc
25 on HSBC European Index C income/Acc
25 on Legal & General Japan Index Trust
25 on Fidelity Index Pacific ex Japan

if you can do 150, add 2 bond trackers
25 from Royal London Index Linked Gilt M Income
25 from Legal and General High Income Trust Income

As always, this is only a recommendation and you are responsible for all decisions made!

AlanP_2

Until your overall pot gets into at least 5 figures go with a simple 1 fund solution.

Make that fund one that exposes you to a broad range of geographical markets (as suggested by Dunston) or a muli-asset fund (as suggested by Dunston).

For the latter have a look at the Vanguard LifeStrategy range or the L&G MultiIndex range as possibles.

Whilst your pot is growing continue to read up on the subject and get more of a feel for it.

As a starter have a look at monevator.com for information on Asset Allocation.

weenie15

You could consider the Vanguard LifeStrategy 100% Equity Fund, where the charge is 0.22%. Or the Vanguard LifeStrategy 80% Equity Fund (20% in Bonds), also at 0.22%.

Assuming you just want to invest and leave to grow, go for the Acc versions.