Investment newbie

eskbanker

Sorry, by 'decent source' I was meaning a link to verifiable and reliable independent data (preferably online for ease of review) rather than saying that one of the pioneers of passive investing (who'd clearly have something of a vested interest) wrote it in a book!

greenglide

The stats are documented inside John Bogle's Little Book of Common Sense Investing which is a very interested read

Which, presumably, is written for the US market with US rules?

Very different.

cynicaldoc

I have run some sums of my own.


I invest via HL and have a 50% split between Lindsell Train Global and SMT. Total fees inc. HL fee is 1.44% pa. Plan A.


Had I invested via HL with a 50% split between L&G International Index and Fidelity World index fees would have been 0.66%. Plan B.


Plan A three year return:


Lindsell Train - 77.62%
SMT 98%
Fees 1.44%


£10k investment over three years - fee = £18481



Plan B -


L&G 56.54%
Fidelity World 54.67
Fees 0.66%


£10k investment over three years - fee = £15457


So Plan A returned c.12.5% more but had a fee that was 41% higher.

ColdIron

cynicaldoc wrote: »

I have run some sums of my own.

I invest via HL and have a 50% split between Lindsell Train Global and SMT. Total fees inc. HL fee is 1.44% pa. Plan A

Looks like you have just added all 3 fees together, 0.55 + 0.44 + 0.45 but you have split your investment 50/50 so the combined fee is half your reckoning (0.55 + 0.44) / 2 and with the HL charge 0.945 is closer to the mark

cynicaldoc

Oops. Thanks.