HSBC Stocks & Shares Tracker ISA - Are fees too high?

AnotherJoe

Never mind that rearranging deckchairs, dump all the 250 funds.

AnotherJoe

weaver33 wrote: »

Thanks Economic.

I was acting on an investment strategy I read about on the Motley Fool about 8 years ago which showed how the FTSE250 outperformed the FTSE 100 and FTSE All Share.

I started investing then.

Clearly the FTSE All World Index C Acc was a better option.

And it still is.


If I said that 'C' was better than 'A' or 'B', you should still look at D through Z before diving into C.

weaver33

You live and learn my friend.

I'm glad I started this thread now!

Alexland

weaver33 wrote: »

How do I go about getting HSBC to invest my monthly funds into just the ACC Fund?

Are they likely to charge me?

Can the fund invested in the (I) Fund be merged into the (A) ?

I have never used the HSBC Investment Centre but they would either have an option to switch an existing investment into another or you will have to sell down one investment into an ISA cash balance and then buy into another. I believe they only charge percentages with no trade costs (which can be good for smaller account valuations).

For future contributions you should be able to set what proportion or monetary value goes into which fund.

If uncertain you could always ask them for support?

Alex

londoninvestor

weaver33 wrote: »

Thanks Economic.

I was acting on an investment strategy I read about on the Motley Fool about 8 years ago which showed how the FTSE250 outperformed the FTSE 100 and FTSE All Share.

I started investing then.

Clearly the FTSE All World Index C Acc was a better option.

Motley Fool UK was useful in about the late 1990s, when most passive options available to UK investors were UK-based - but the late 1990s is where it seems to be stuck.

An article from literally today:
https://www.fool.co.uk/investing/2019/09/28/heres-how-id-use-a-ftse-100-tracker-fund-to-double-the-state-pension/

FTSE 100 tracker... 4% SWR... Not a word to suggest there might be more to investing than this!

Alexland

Yes the Motley Fool has been endlessly recycling the same clickbait stories for many years and just clog up newsfeeds. I am unsure there is even a human writing the stuff or if it's just a crazed algorithm driving formulaic sentences to maximise banner advertising revenue.

londoninvestor

Alexland wrote: »

Yes the Motley Fool has been endlessly recycling the same clickbait stories for many years and just clog up newsfeeds. I am unsure there is even a human writing the stuff or if it's just a crazed algorithm driving formulaic sentences to maximise banner advertising revenue.

If you read for 100 days, do they just recommend every single FTSE 100 stock in turn?

I was going to compare them to Oasis, but in fairness Noel doesn't seem to be still waving around a Union Jack-emblazoned guitar 20 years on.

DrSyn

1. Watch both of these first:

http://www.kroijer.com/

https://www.ifa.com/indexfundsthemovie/


2. Then consider investing in a low cost Global Multi Asset Fund. They have wide diversification while minimising risk, at low cost. There are a number of such funds.

You chose the risk level or share/bond split you are comfortable with, pay them the money & they do the rest. Examples:-

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

With this you chose the share/bond split. They then will re-balance to maintain it at that split. You have to accept the market risk that goes with the split.

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/

With this you chose the risk level (say balanced) you are comfortable with. They the re-balance the funds assets to maintain it at that risk level. This is called a “Risk Targeted Fund”.


3. Picking a fund platform. Just make sure they deal in the funds you are interested in before signing up:-

http://www.comparefundplatforms.com/

https://www.boringmoney.co.uk/calculator/

https://monevator.com/compare-uk-cheapest-online-brokers/


Hope they above is of some help.

[Deleted User]

0.88% is quite expensive for just an account holding a FTSE 250 tracker fund.

In my SIPP, there is the option on the list of funds for the "HSBC Ftse 250 Accumulation (or income)" fund for 0.18% annual charge (Plus my pension platform charge of 0.25%) so that is 0.43%.

Linton

newbinvestor wrote: »

0.88% is quite expensive for just an account holding a FTSE 250 tracker fund.

In my SIPP, there is the option on the list of funds for the "HSBC Ftse 250 Accumulation (or income)" fund for 0.18% annual charge (Plus my pension platform charge of 0.25%) so that is 0.43%.

According to the OP providers Fees and Charges document it isnt 0.88%. its 0.66%. And this figure includes the highly dubious "Transactions Costs" charge which your figures dont. Your costs would appear to be the same as the OPs.