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Interactive Investor don’t do my fund?

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I have about 50k invested in HSBC FTSE ALL SHARE INDEX tracker and given that it has dropped significantly in value recently, I decided my best course of action was to transfer to a cheaper platform. I’m currently with HL and wanted to move to Interactive Investor. II have advised they no longer deal with my fund and advised I should either stick with HL or sell to put in a different fund. Would it be detrimental to do the latter? I realise it’s not a great fund but is the benefit greater to stick with it? Would really appreciate help with this, thank you.
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  • AlexlandAlexland Forumite
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    II aren't cheap either on a £50k single fund account. UK index funds have been doing poorly for years so I am unsure it's worth holding on for any recovery by which time something better might have advanced further.
    Would it be preferable to hold a better investment on an even cheaper platform?
  • jobitsjobits Forumite
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    I was just reading iWeb are cheaper, but would I lose out if I changed to a different fund? 
  • dunstonhdunstonh Forumite
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    I have about 50k invested in HSBC FTSE ALL SHARE INDEX tracker and given that it has dropped significantly in value recently, I decided my best course of action was to transfer to a cheaper platform.

    One assumes that this is just one of a number of funds you hold and you are not investing 100% into that fund?

    If you are investing 100%  into that fund then that is your problem. Single sector investing is bad quality investing.   Changing platform is not what you should be looking at but improving your investment quality.

    I realise it’s not a great fund but is the benefit greater to stick with it?
    Nothing wrong with the fund. It could form the part of your UK equity core component (leaving a satellite fund to cover more interesting areas).  Or you could just use it to cover your UK equity exposure.     As long as you dont hold it by itself its fine.

    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.
  • jobitsjobits Forumite
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    This is my only fund, so I guess it’s a no no! I just want something I can add to monthly and forget about. Is now a good time to change though?
  • edited 16 May at 11:45AM
    AlexlandAlexland Forumite
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    edited 16 May at 11:45AM
    Its not an ideal time to change but its also not ideal to hold onto a UK tracker for the future either.
    Over the long term there isn't really any investment that you can just forget about safe in the knowledge it remains suitable and good value. Too much stuff changes.
    Keep asking yourself if what you are doing is the best available option given your circumstances and objectives.
    In terms of platform choice you may find Halifax Share Dealing are cheaper for an ISA at £12.50 pa plus £2 per regular scheduled trade into a better diversified fund = £36.50 pa. However like sibling iWeb they may not be processing transfers at the moment due to the virus.
  • badger09badger09 Forumite
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    jobits said:
    I have about 50k invested in HSBC FTSE ALL SHARE INDEX tracker and given that it has dropped significantly in value recently, I decided my best course of action was to transfer to a cheaper platform. I’m currently with HL and wanted to move to Interactive Investor. II have advised they no longer deal with my fund and advised I should either stick with HL or sell to put in a different fund. Would it be detrimental to do the latter? I realise it’s not a great fund but is the benefit greater to stick with it? Would really appreciate help with this, thank you.
    I honestly can't see the logic in your opening sentence.

    Why would a drop in a particular fund's value prompt you to move to a different platform? Do you think your chosen fund will perform differently, depending on where you hold it? (Ignoring marginal differences eg on some HL discounted)  

    Others have already commented on the advisability of investing in just this one fund. 


  • Alistair31Alistair31 Forumite
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    badger09 said:
    jobits said:
    I have about 50k invested in HSBC FTSE ALL SHARE INDEX tracker and given that it has dropped significantly in value recently, I decided my best course of action was to transfer to a cheaper platform. I’m currently with HL and wanted to move to Interactive Investor. II have advised they no longer deal with my fund and advised I should either stick with HL or sell to put in a different fund. Would it be detrimental to do the latter? I realise it’s not a great fund but is the benefit greater to stick with it? Would really appreciate help with this, thank you.
    I honestly can't see the logic in your opening sentence.

    Why would a drop in a particular fund's value prompt you to move to a different platform? Do you think your chosen fund will perform differently, depending on where you hold it? (Ignoring marginal differences eg on some HL discounted)  

    Others have already commented on the advisability of investing in just this one fund. 


    I had the same thought, if on a percentage fee platform with funds, such as HL, it surely follows that if the fund devalues then the fees owed also goes down?
  • jobitsjobits Forumite
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    HL charge 0.45% and this is starting to add up. I was just thinking that given it’s my only investment, I should at least try and get this charge down whilst things are a bit rough. I’m no expert, but thought this was the logical thing to do? I think iWeb May be a better alternative. I agree I need to diversify and think it would be a good idea to start investing in a global fund but keep this Uk fund aswell.Does this sound like a good idea?
  • Alistair31Alistair31 Forumite
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    A global fund will include U.K. allocation, not sure why you would keep your U.K. tracker?
  • eskbankereskbanker Forumite
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    jobits said:
    HL charge 0.45% and this is starting to add up. I was just thinking that given it’s my only investment, I should at least try and get this charge down whilst things are a bit rough. I’m no expert, but thought this was the logical thing to do? 
    Nobody was questioning the wisdom of moving to a cheaper platform, but just highlighting the illogical rationale of doing so specifically because of recently reduced investment values!

    jobits said:
    I agree I need to diversify and think it would be a good idea to start investing in a global fund but keep this Uk fund aswell.Does this sound like a good idea?
    Global is better diversified than UK-only - most global funds would include a UK component so you shouldn't need to have both a global fund and a UK one, although doing so would obviously allow you to adjust the UK allocation, but the key question is really what your target allocation is, and why?
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