Hargreaves Landsdown Vs Cavendish

Dazza_a89

Hello all,
I will try to keep this brief. I'm new to investments and I've decided to take my first step and setup a small S&S ISA.
I have set this up with Hargreaves Landsdown and currently have £600 invested into a vanguard fund. I aim to add another £500 on the 20th May and another £500 in June, then add few hundred £s here and there when I can.
After I set this up I realised that there is what looks like a cheaper service charge available from Cavendish at 0.25% rather than my 0.45% from HL.
Should I move this to Cavendish or keep with HL? I know HL have said about a bonus every couple of months but is this enough to make up for the extra charges? Like I said I'm brand new to this so I might need all the advice I can get! I don't think Cav provide any?
Thanks

Dazza_a89

Update - I plan to save £120ish a month after June.

Linton

In a few months you will have about £2000 invested. The difference between Cavendish and HL is 0.2% =£4/year. Aren't there easier ways of earning an extra £4/year than moving ISAs around? Your investments could easily lose or gain £4 in a day. Have you checked the possible charges for moving an account?

Also you may find HL provide facilities for free that Cavendish charge for.

dunstonh

Should I move this to Cavendish or keep with HL?

You will be out of the market for about a week and could lose a dividend distribution. All to save £4. If the markets move say 5% in that period then you could miss out on £100.

I know HL have said about a bonus every couple of months but is this enough to make up for the extra charges?

Forget that. Look at the net costs.

Like I said I'm brand new to this so I might need all the advice I can get! I don't think Cav provide any?

The whole point of non-advised service providers is that they do not provide advice.

Dazza_a89

Thank you, your right the charges are so small it's not worth it at this moment in time. I am currently using the Vanguard LifeStrategy 80% Equity acc fund. Mostly because the growth was ok, it was recommended and the fees are low. Should I look to be splitting the investments up and using 50/50 in another fund? If so what should I look at?
Thanks in advance!

dunstonh

I am currently using the Vanguard LifeStrategy 80% Equity acc fund. Mostly because the growth was ok, it was recommended and the fees are low.

That fund was launched after the last major downturn. It hasn't gone through any major negative period. It has the typical loss potential of around 35% in 12 months.

Should I look to be splitting the investments up and using 50/50 in another fund?

The VLS is a fettered fund of funds. You don't need multiple funds until you start looking at a much higher amount than you have.

Dazza_a89

dunstonh wrote: »

That fund was launched after the last major downturn. It hasn't gone through any major negative period. It has the typical loss potential of around 35% in 12 months.

Ok that's understandable, is there any other funds you would recommend please?

dunstonh

Dazza_a89 wrote: »

Ok that's understandable, is there any other funds you would recommend please?

Yes, there are but recommending investment funds is a regulated activity, and it is not possible to comply with the regulatory requirements on an internet discussion board.

However, you only have a small amount invested. So, don't worry about it unless you feel you don't have that high a risk profile to handle that fund.

edinburgher

While the amounts saved switching your ISA might be small beer now, you should reconsider moving to a provider with lower costs if you find yourself in a position to make more substantial monthly investments. 0.2% might not be much on a couple ££££, but would be £££ a year if you hit six figures invested.

jimjames

Dazza_a89 wrote: »

Ok that's understandable, is there any other funds you would recommend please?

If you're not prepared for the risk then you could use one of the other Vanguard VLS funds with more bonds in it

Dazza_a89

The risk is ok, I just wanted to maximise what I have and not go chasing a rabbit down a black whole. I know it's a risk either way but making sure I don't do anything silly.