Investment charges - am I missing anything?

justme111

Looked at HSBC dynamic fund on Fidelity and was given an illustration of charges which amount to about 1% yearly - if I remember correctly about .75% fund charge +.25% platform charge. Nothing fancy , all in one solution, most budget platform but it does not look cheap to me...

Lungboy

I think you're looking at the world selection dynamic fund rather than the global strategy dynamic. Is that the one you want?

justme111

I am afraid I do not understand the difference between them - I am not sure which one I looked at ( well , bought already(:D

Alexland

Global Strategy is lower cost and slightly more adventurous than World Selection.

dunstonh

World selection was brought in to be sold via the branches. An expensive distribution channel for consumers but one where banks can get away with selling naff products and naff investments as their customers generally know no better.

The global strategy funds were brought in for IFAs and the DIY market to compete with Vanguard.

ValiantSon

justme111 wrote: »

I am afraid I do not understand the difference between them - I am not sure which one I looked at ( well , bought already(:D

Your first post was timed at 11:26 a.m. and your second at 12:14 p.m. You gave us less than 50 minutes to answer your question before deciding to buy! Why the rush? As a result you have bought a less good fund at a much higher ongoing cost! Bizarre.

If I were you I'd sell the World Selection fund straight away and buy the Global Strategy fund.

You also bought it on a more expensive platform than you needed to. Fidelity will charge you 0.35%, whereas Cavendish would have charged you 0.25%.

Buy in haste and repent at leisure.

justme111

I actually bought it before posting the first post - sorry my wording was not clear. I used Cavendish but as it redirects me to fidelity platform I did not think it was relevant to mention it. Thank you for your advice , do not seem to be able to sell it as yet as the units were not bought yet. Shall do on Monday. I planned to buy it so decided to ignore new information ( two similar name funds( and just picked one of them. Silly and thank you for explaining.Are the investments the same/similar in those funds?

timrowlands

justme111 wrote: »

Thank you for your advice , do not seem to be able to sell it as yet as the units were not bought yet. Shall do on Monday.

If you placed the order at the weekend, for it to be executed on the Monday, can you not just cancel your pending buy order?

ValiantSon

justme111 wrote: »

I actually bought it before posting the first post - sorry my wording was not clear. I used Cavendish but as it redirects me to fidelity platform I did not think it was relevant to mention it. Thank you for your advice , do not seem to be able to sell it as yet as the units were not bought yet. Shall do on Monday. I planned to buy it so decided to ignore new information ( two similar name funds( and just picked one of them. Silly and thank you for explaining.Are the investments the same/similar in those funds?

You may be able to cancel the buy order, but if not then you will just have to place a sell order on Monday.

The underlying investments are different between the two funds. The Global Strategy fund is a bit more adventurous. You can compare the two funds using the links below:

Global Strategy Dynamic

World Selection Dynamic

justme111

timrowlands wrote: »

If you placed the order at the weekend, for it to be executed on the Monday, can you not just cancel your pending buy order?

I have not seen the option of cancelling it on the website. May call them first thing Monday morning

Alexland

In my Fidelity workplace pension there is no option to cancel pending fund transactions. You might just have to go into World Selection for a few days. Still could be worse some punters invest in that fund for years.