HSBC Global & VLS60

bcfclee27

Audaxer wrote: »

Take VLS80 and VLS60 for example. If markets were to keep rising then the VLS80 will grow more than the VLS60 so your hybrid VLS70 will gradually creep up and after a few years you may have a hybrid VLS75. In that case you would just work out how much of the VLS80 you would need to sell to top up the VLS60 to bring it back to a VLS70. You could leave them alone but it is increasing your risk tolerance, so you have a bigger fall come the next equity crash.

As the HSBC funds can alter their percentages of equities, it may or may not be that these funds change percentages of equities in falling markets, so may be more difficult to get exactly back to a hybrid HSBC70 than with VLS.

Great I understand a lot more now thank you.

fun4everyone

bcfclee27 wrote: »

Will I be charged for rebalancing ?

That depends entirely on both the platform and investments you choose.

bcfclee27

fun4everyone wrote: »

That depends entirely on both the platform and investments you choose.

Hmmmm starting to think I'm better off keeping it simple.

Just invest in VLS60 & HSBC Balanced.

Take it there would then be no effort required ?
Just sit back and hopefully watch them grow ?

fun4everyone

bcfclee27 wrote: »

Hmmmm starting to think I'm better off keeping it simple.

Just invest in VLS60 & HSBC Balanced.

Take it there would then be no effort required ?
Just sit back and hopefully watch them grow ?

Keeping it simple and clean is always good generic advice but it really does entirely depend on your situation. To take two extremes, someone wanting to invest £1,000 should just pick one fund themselves and be done with it but someone with £50,000,000 from the euromillions should take serious professional advice over what will be a highly complex financial setup. We don't know your exact amounts and situation and even if we did we wouldn't know everything that should be taken into consideration so please be careful. People giving bad suggestions speak with authority on websites and forums all the time which can be dangerous with finances. There are also people and websites giving well thought out and rounded advice. You have to try and ignore all the agendas of which there are many when money is the topic.

You are already putting in effort to learn which is exactly what is needed if you are going to DIY.

ValiantSon

bcfclee27 wrote: »

Great thanks, any recommendations of a GIA ?
HL charge 0.45 per annum - is this high ?

Yes it is.

Cavendish Online will charge 0.25% and they have no exit fees either. HL will charge you high exit fees of £25 per holding and £30 to close the account.

I'd suggest two GIAs if you are going to invest in Vanguard as well as HSBC. Hold the HSBC funds in one, e.g. Cavendish, and the Vanguard funds with Vanguard Investor, who will only charge you 0.15%. Vanguard don't charge any exit fees either.

bcfclee27 wrote: »

Will I be charged for rebalancing ?

Rebalancing won't cost with the right platform because they won't charge you trading fees. Neither Cavendish nor HL, nor Vanguard Investor charge fees to trade funds.

bcfclee27 wrote: »

Hmmmm starting to think I'm better off keeping it simple.

Just invest in VLS60 & HSBC Balanced.

Take it there would then be no effort required ?
Just sit back and hopefully watch them grow ?

That would be simpler, but then it isn't giving you the asset allocation that you wanted, including the UK equities allocation and corporate bonds allocation, not just the 70/30 split.

bcfclee27

ValiantSon wrote: »

Yes it is.

Cavendish Online will charge 0.25% and they have no exit fees either. HL will charge you high exit fees of £25 per holding and £30 to close the account.

I'd suggest two GIAs if you are going to invest in Vanguard as well as HSBC. Hold the HSBC funds in one, e.g. Cavendish, and the Vanguard funds with Vanguard Investor, who will only charge you 0.15%. Vanguard don't charge any exit fees either.



Rebalancing won't cost with the right platform because they won't charge you trading fees. Neither Cavendish nor HL, nor Vanguard Investor charge fees to trade funds.



That would be simpler, but then it isn't giving you the asset allocation that you wanted, including the UK equities allocation and corporate bonds allocation, not just the 70/30 split.

Thanks Valiant Son !!! Will go this route then I'm sure re-balancing can't be that difficult !! Can always ask you lot for help and advice on the matter.

jamei305

Comparing the past performance of VLS60 and HSBC Balanced I'm not sure it's worth spending much time choosing between them...

bcfclee27

jamei305 wrote: »

Comparing the past performance of VLS60 and HSBC Balanced I'm not sure it's worth spending much time choosing between them...

Interesting graph Jamie thanks. Gonna invest in both as although performance similar, their allocations are quite different UK weighting just for starters.

ValiantSon

jamei305 wrote: »

Comparing the past performance of VLS60 and HSBC Balanced I'm not sure it's worth spending much time choosing between them...

Past performance has been very similar, but we don't know how that would look in a falling equities market, for example, or where the UK under or overperformed compared to global markets. The differing corporate to government bond allocations also potentially will result in different outcomes. I'm not saying that it will be different, just that (to use a cliche) past performance is not an indicator of future performance, and the differing allocations in the two funds might make a more noticeable difference to returns at a different phase in the economic cycle.

bcfclee27

Quick update....

So I have decided to stick to my hybrids.....

I'm going to open an account with Vanguard today and open a GIA with VLS 60 & VLS 80 giving me a hybrid VLS 70.

I wil then open a Cavendish account and open a GIA with HSBC Balanced & HSBC Dynamic which also gives me a rough 70% equities hybrid.

I will start these off with small opening amounts and look to drip feed over the coming days/weeks/months with an eye on what the prices are doing.
This current rebalance has definitely given me the nudge to get my investment ball rolling.

By keeping the hybrids it also means I get a balance of corporate and government bonds as well as a mix of UK and US equities.

I also have an eye on Orbis which will further diversify my allocations/portfolio.

Further comments on this are welcomed...

I just want to say a massive thank you to everyone who has contributed to my learning, especially Alexland, Valiantson & Audaxer.
I'm still very new to this and my understanding is still very small but this board has been so helpful and helped me endlessly with learning about investing.