HL ISA or Vanguard General?

Gin_and_Milk

Hi,

I have a small number of shares in an ISA with Hargreaves Lansdown, who I know aren't the cheapest, but they were recommended numerous times for novice investors like me.

I'm now considering buying some funds, and I'm currently tempted by Vanguard LifeStrategy. As someone who plans to drip feed approx £100 per month, and who is very much in it for the long haul, I'm prepared to risk the 80:20 fund.

Two things I'm not sure about - Do I use my ISA with HL to buy into the funds given HL's charges, or do I open a general account with Vanguard, and pay tax, but with smaller fees? (I've already paid into my ISA this year so I can't open a new one and I'm nowhere near my allowance anyway).
The other things I'm not sure about is the price. Share prices I find easy to understand, but funds? HL list the price as 20,251.63p. I don't even know what that means!

Thanks

masonic

Going direct with Vanguard would make most sense, and bed & ISA when you next have the opportunity. You will generate a very small capital gain and small amount of dividends at £100 per month, both of which would be covered by respective allowances.

The unit price of a fund is pretty irrelevant. You can buy fractional units to an almost exact amount in pounds. Units are created and cancelled as needed and the price is based on the total value of the net assets divided by the current number of units.

Gin_and_Milk

Thanks Masonic,
When you say 'and bed & ISA', what do you mean?

Probably just as well I don't have thousands to play around with, given the level of my knowledge!

masonic

Gin_and_Milk wrote: »

Thanks Masonic,
When you say 'and bed & ISA', what do you mean?

In a future tax year you can sell your Vanguard LS fund, pay the money into an ISA with Vanguard and repurchase it inside the ISA.

Probably just as well I don't have thousands to play around with, given the level of my knowledge!

One day you might, but there is plenty of time to learn, and you'll probably learn faster than you think.

Gin_and_Milk

I thought that was what you meant, yes that does make sense.

And yep, plenty of time to learn. I've subscribed to a few blogs etc, and they do make interesting reading, so I'll keep chipping away.

Thanks again