1st TIME INVESTOR

ulysses76

I was thinking of dipping my toe in the world of investments & was wanting to pick some knowledgable brains on whether i could do the following.
1:Would i be able to invest £100/month in 2 separate funds (1 Asian & 1 UK/European) within this years stocks & shares ISA through H&L & would i be charged commission for each fund?
2: If i then continue paying £100/month into both funds in the next tax year, would this accumulate? i.e. by the end of next tax year, both funds would have £600(2007 payments) + £1200(2008 payments) =£1800 in each.
Would i have to pay commission at the start of this next tax year also, if it is still the same funds that i am investing in?
Any advice given would be much appreciated.

:rotfl:

dunstonh

1:Would i be able to invest £100/month in 2 separate funds (1 Asian & 1 UK/European) within this years stocks & shares ISA through H&L & would i be charged commission for each fund?

Commissions and charges are two different things. Providers pay a commission to the IFAs. The IFAs in this case are HL. You dont pay the commission, the fund house does. In turn, the fund house recovers that commission by charging you an amount that may or may not reflect the amount of the commission paid.

HL typically received upto 0.75% trail commission and rebate upto 0.25% of it.

Would i have to pay commission at the start of this next tax year also

Yes. For as long as you hold the investments, the servicing IFA gets paid the trail commission.

Dont focus on the commission. Focus on the charges. That is what you pay.

ulysses76

Thanks for that!
Looking through various threads, it seems the best,cheapest way to get into investing is by using an IFA like H&L.
Is this right?

dunstonh

If you want execution only then HL are basically the cheapest for funds on an ISA or unwrapped.