We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Transfer to SIPP to save on management fee?

2»

Comments

  • Mike_FS
    Mike_FS Posts: 15 Forumite
    Fourth Anniversary 10 Posts
    Albermarle wrote: »
    However as you originally said by switching you can then access much lower charging ( but riskier ) ETF's/tracker funds. If you do switch then maybe worth considering not putting the whole £300K into potentially volatile investments , like ETFs. For a small increase in charges you could invest in passive multi asset funds as well. These would be less risky.

    I just had a quick look at some AJ Bell passive multi-asset funds eg. "Passive Global Growth" fund and its top holdings are all actually ETFs anyway! So it might be less risky in that I might chose a worse performing portfolio of ETFs but is it enough to justify the management charge markup (the ETFs have individual charges less than 0.1%, the passive fund has a 0.5% charge)? I assume I'd be paying for (a) their knowledge of what balanced portfolio is most likely to achieve the objectives and (b) their probably faster ability to respond to global events to change the portfolio balance.
  • Albermarle
    Albermarle Posts: 28,986 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    the passive fund has a 0.5% charge)
    If you avoid the in house fund and shop around on their site , I think you will find funds like Vanguards VLS 60 and similar for around 0.25%.
    I assume I'd be paying for (a) their knowledge of what balanced portfolio is most likely to achieve the objectives and
    Basically yes .
  • dunstonh
    dunstonh Posts: 120,201 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    There are better-priced multi-asset funds on the UT/OEIC side. HSBC Global Strategy. Vanguard Lifestrategy, L&G multi-index to name just a few. There are more.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.