HSBC World Selection Balanced Portfolio

Alexland

Audaxer wrote: »

If you did move your investments to one of the big platforms like AJ Bell you would save a lot in costs especially as your investment pot grows, even by just investing in the HSBC Global Strategy Balanced fund which I think is similar to the HSBC World Selection Balanced Portfolio, although the former has a higher percentage of equities, so probably a bit more volatile, but higher potential gains long term.

Why would you go to AJ Bell and pay 0.25% plus £1.50 per fund trade when the HSBC GS funds appear to be on Cavendish (Fidelity FundsNetwork) for 0.25% with no trade cost?

Alex

Alexland

Anonymous__C wrote: »

My investment timeframe is at least 5 years, i currently don't have a lot invested approx. £4000 because the majority of my money goes in a cash ISA & regular saver that goes towards my mortgage deposit. I don't have a help to buy ISA as i have left it too late and don't feel like i'll benefit from it because i'm planning on buying my first property mid this year.

I don't see why you wouldn't benefit from a 25% bonus on an initial £1200 then £200 per month contribution when a registered conveyancer would only charge an extra £50+vat to process the additional funding source? Assuming you meet all the eligibility criteria. That's lots of free money.

If you have already contributed to a Cash ISA this tax year you would need both accounts to be with a split ISA provider like Nationwide.

Anonymous__C wrote: »

I'm currently putting away £100 each month towards my investments and want to start trading shares as well as investing in funds.

I did shares when I was younger but it was mostly a high risk waste of time and my returns were lower than funds.

Higher trade fees, stamp duty, companies which might go unexpectedly bust, dividend cuts, rights issues, etc - cannot see the attraction anymore.

The annoying thing was that, like yourself, I had already started down the right path with funds so it was a totally unnecessary diversion.

Alex

Audaxer

Alexland wrote: »

Why would you go to AJ Bell and pay 0.25% plus £1.50 per fund trade when the HSBC GS funds appear to be on Cavendish (Fidelity FundsNetwork) for 0.25% with no trade cost?

Alex

Fair enough, I was just using AJ Bell as an example of a big reputable platform with a reasonably low percentage platform charge. If investing in one fund monthly it would be an extra £18 per year in trading costs, not a fortune, but I agree if you can do it on one of other big reputable platforms that has no trading costs but meets all your other needs such as customer service etc. go for it.

ValiantSon

Anonymous__C wrote: »

Thank you all for your responses

My investment timeframe is at least 5 years, i currently don't have a lot invested approx. £4000 because the majority of my money goes in a cash ISA & regular saver that goes towards my mortgage deposit. I don't have a help to buy ISA as i have left it too late and don't feel like i'll benefit from it because i'm planning on buying my first property mid this year.

I'm currently putting away £100 each month towards my investments and want to start trading shares as well as investing in funds.

I'd suggest you avoid trading in individual shares. It is very risky. You would be much better off concentrating any investments in funds.

Alexland

Audaxer wrote: »

Fair enough, I was just using AJ Bell as an example of a big reputable platform with a reasonably low percentage platform charge. If investing in one fund monthly it would be an extra £18 per year in trading costs, not a fortune, but I agree if you can do it on one of other big reputable platforms that has no trading costs but meets all your other needs such as customer service etc. go for it.

An extra £18 on £4k would be 0.45% bringing the total cost via AJ Bell to 0.89% which is not far off the 1.06% the OP is currently paying for the HSBC ISA.

Although it's cheaper if you go via the right DIY platform personally I don't have a problem with banks selling global mixed asset investment ISAs with fees of around 1% as they have a higher cost base and deliver a service helping the customer match their risk tolerance, etc.

For comparison according to the Unbiased website 'cost of advice' pages an IFA would typically charge £450 to setup an £11k investment ISA.

Alex