is my interpretation of the charges correct

Jupiter55

Hi All
I had posted prior to this for advice and since then I have opened a vanguard 64/40 Isa for this financial year. I have made an initial deposit and dont know if I should top it up every month or just add a big lump sum . Much more reading to be done, however I have officially dipped my toes in the water
I am now going to open a non isa account with about an initial £30 pcm. These transactions are my first venture into anything like this. If you have read my prior posts you will see I perhaps am doing it for earrings

anyhoo my questions is I am going to deposit around £30 pcm into -  

HSBC multi asset fund cautious with an ongoing charge of 0.43
or a L&G multi index 3 fund low risk with an ongoing charge of 0.61

On paper it looks like it makes sense to go for HSBC

I have decided against a tracker based on reading these forums, and am way not ready to pick my own , thats why I am looking at ready made funds

I know its not a lot of money every month but in time this might increase or I might take it all out and run to the hills and put in a 0.20% interest savings account fixed for 10 years

thanks in advance for reading and to anyone who replies

Albermarle

I have made an initial deposit and dont know if I should top it up every month or just add a big lump sum

The same question as this gets asked multiple times . The answer is historically it is better to just go for a lump sum on average .

However from a mental stress point of view ( in case you invest a lump sum and the markets have a big downturn ) the monthly investments might be better.

You can also go half way and invest 25% every quarter. 

Jupiter55

Thanks very much for taking the time to answer

Alexland

Jupiter55 said:

I have made an initial deposit and dont know if I should top it up every month or just add a big lump sum . 

That depends if you mean a lump sum at the start or end of the tax year. Historically the best answer on the balance of probabilities is to invest the money as it becomes available to you (obviously keeping an emergency cash buffer) assuming it's not needed for 5+ years.

Jupiter55 said:

I am now going to open a non isa account with about an initial £30 pcm. These transactions are my first venture into anything like this. 

Unsure why you are doing this - have you really maxed our all other tax efficient options and been left with a spare £30 pm?

Jupiter55

Hi Alexland
I am just into the higher tax bracket in Scotland, therefore I can only earn £500 in savings interest without paying tax. I have got money in a fixed account which covers that , plus rainy day money in a easy access marcus.
The money I have left over is for the isa , which I have 20K set aside for , I was thinking £5k in the shares isa and £15 in a cash isa - still a bit nervous about stocks and shares so therefore £5 is my starting point.

The £30 a month is some spare cash which was going into the marcus at 1.30% interest but I thought I would just use it for a general multi fund account and can leave it alone for some time as its outside my raining day money in the marcus

hope all this makes sense

afis1904

What does your pension situation look like? Might be a good idea to put some of the money towards that.

Thrugelmir

afis1904 said:

What does your pension situation look like? Might be a good idea to put some of the money towards that.

At least adds a bonus to the £30 contribution. 

Jupiter55

hi, its a  good work pension and I only have five years left before I take it - not that I am counting

ColdIron

I'd still consider the pension, it might take you out of higher rate tax

Jupiter55

hi , am just having a look at avc just now , think I will go and speak to a financial adviser

Albermarle

Jupiter55 said:

hi , am just having a look at avc just now , think I will go and speak to a financial adviser

I am not sure this is the best route for you as the sums you are talking about are too small to interest an IFA.
They would typically want to be managing a portfolio upwards of £50K , not including cash, or workplace pensions.