Readymade investments

mjv1986

HI,

I usually just put my money into savings accounts and take the interest.

However, due to the poor rates, I am thinking of putting my money into a readymade investment. I know a load of banks do this (I've looked at Halifax and HSBC) and have various levels of risk you can choose. Also, I have been advised by a family member to put it in the Hargreaves Lansdown one.

I appreciate doing the investments yourself is going to be "better", but at risk at sounding lazy, I don't really want to do that at this time.That's maybe something for later down the line.

So after my waffle, my questions is, does it matter really what one you put it in or are they much of a muchness? Also, for example, would hargreaves' investors be "better"?

I'm a bit clueless with all this stuff. Initally i'm not going to put all my savings into this, maybe a couple of k, then maybe put more in each month.

Thanks in advance for any guidance or alternative options.

grumiofoundation

There are various 'ready-made funds' (see link to multi-assest funds below for comparisons) which invest in various different things provided by various different companies (e.g. vanguard, HSBC, legal and general and many others). 

Make sure you understand the distinction between the investment platform and the investment itself. 

What you invest in will be the major determinant of your returns (or losses). The platform is secondary.

https://monevator.com/passive-fund-of-funds-the-rivals/
https://monevator.com/investing-for-beginners-why-do-we-invest/
https://www.moneysavingexpert.com/savings/stocks-shares-isas/

Alexland

mjv1986 said:

I appreciate doing the investments yourself is going to be "better"

Analysis suggests the average customer would be better not doing it themselves by being too active as a little knowledge can be dangerous and they tend to make more mistakes than a simpler approach.

For a modest sized account the HSBC Global Strategy multi asset fund series via the HSBC Investment Centre is pretty good with total costs under 0.5% pa. Alternatively Vanguard do the LifeStrategy fund series at a total cost under 0.4% but it does have a UK bias which is a market which has not performed so well recently. Also consider the L&G Multi Index funds which cost a bit more but there is broader diversification and usually a good TopCashBack signup offer.

I wouldn't touch the HL ready made funds with a barge pole as they are very expensive and most of the evidence suggests that active management is unlikely to deliver better long term returns. HL were happy to be holding their mate Woodford until the end despite many warning signals. Also the Halifax ready made funds are worth avoiding but once your account gets much bigger they run a good advanced share dealing service for holding larger fund vaulations.

dunstonh

I appreciate doing the investments yourself is going to be "better"

DIY well and you can save money.  DIY badly and it can cost you money.  One of the options you have mentioned is expensive. Indeed, more so in most cases than using an IFA to do it for you.      So, its only better if you do it right.

If you want to DIY, then spend a bit more time learning about it and dont go for the ready made portfolios or own-brand unfettered multimanager funds from the platforms.