Vanguard Stocks and Share ISA - Life Strategy funds - small adhoc payments in allowed?

grumiofoundation

thetimewill said:

Davejp, Putting money into various Vanguard funds ( as suggested) is entirely different to having more than one account. Why not select select numerous funds?  Regards

I guess the argument is not against buying multiple funds but that there is no real point in buying multiple VLS products - since the overlap is substantial. 

Practically no real harm I suppose? 

[Deleted User]

grumiofoundation, my reply was obviously directed for clarification to daveyjp ,who queried the reason to have different vanguard accounts. The previous post had advised it was permissable to pay into two or more Funds, and did not mention different accounts! Regardless, there are many vanguard funds available with little or no overlap. Regards

Eco_Miser

grumiofoundation said:

thetimewill said:

Davejp, Putting money into various Vanguard funds ( as suggested) is entirely different to having more than one account. Why not select select numerous funds?  Regards

I guess the argument is not against buying multiple funds but that there is no real point in buying multiple VLS products - since the overlap is substantial. 

Practically no real harm I suppose? 

The substantial overlap is part of the point of having two VLS funds, the other part being the non-overlapping portion.  As explained above, two funds are used to get an equity percentage Vanguard don't offer.

AbundantBudget

Sniperwombat said:

AbundantBudget said:

Yes, you can. It's probably not cost efficient but I invested c.£10 on few occasions when I had left overs from investing in ETFs.

Thank you for that - what do you mean by "it's probably not cost efficient"?

There are two types of the fees Vanguard charges, one is quarterly and another one is transactional. I would guess that buying too often in small increments will be more expensive than buying less often. But I might be wrong.

Ongoing costs: This includes the Ongoing Charges Figure (OCF) which is paid to Vanguard for managing the fund and associated costs. These fees are deducted from the price of the fund. Transaction costs: These are the charges incurred within the fund for buying and selling the underlying investments. It includes dealing costs and taxes. We use our scale and experience to trade globally to keep these costs as low as possible. These charges are not paid to Vanguard but are deducted from the fund’s price and are reflected in the performance of the fund. This has always been the case. 

[Deleted User]

Just contacted Vanguard, there is no increase in cost/charge/fees for multiple fund purchase versus single purchase.  ie 10 X £10 purchase will cost exact same as 1 X £100 purchase. Also, there is more to Vanguard than Vls, many funds with no overlap whatsoever eg. UK equity all share index,  Us equity index, global bonds etc Regards

bowlhead99

thetimewill said:

Just contacted Vanguard, there is no increase in cost/charge/fees for multiple fund purchase versus single purchase.  ie 10 X £10 purchase will cost exact same as 1 X £100 purchase.

Yes, this is true for all funds on Vanguardinvestor with the exception of ETFs, which could be bought using their 'Quote and Deal' service where you transact on the stock exchange for a known live price for a £7.50 fee rather than taking their daily bulk deal price for free. Obviously you wouldn't choose to pay a £7.50 fee to do a £10 trade, so this comment is just for completeness if some people have heard anecdotally that it can cost a fee for each trade you place (which is a fee structure that some other platforms have).

ZeroSum

daveyjp said:

ZeroSum said:

Once you made the initial £500 investment, you can make investments of £1.

Also doesnt have to be same fund.
So you can invest £500 in say VLS60, then make £10 investment in VLS80 or whatever

Why would you have two different Vanguard VLS accounts?

It was just an example, but as other suggested if wanted VLS70 then youd get a 60 & 80

But could be entirely different fund from the VLS funds depending what you're after. For example The VLS funds are quite uk heavy so you might decide to add a more global fund to take some of that weighting off

Alexland

If holding VLS60 and 80 in a ratio you would need to remember to rebalance periodically otherwise the risk would slowly creep up with VLS80 likely to perform better long term. Another option would be a 2 fund portfolio of VLS100 or Global All Cap (depending on if you wanted the UK bias) and a bond fund such as Vanguard Global Bond Index Hedged in the desired ratios again rebalancing periodically.

Herbalus

Alexland said:

If holding VLS60 and 80 in a ratio you would need to remember to rebalance periodically otherwise the risk would slowly creep up with VLS80 likely to perform better long term. Another option would be a 2 fund portfolio of VLS100 or Global All Cap (depending on if you wanted the UK bias) and a bond fund such as Vanguard Global Bond Index Hedged in the desired ratios again rebalancing periodically.

I have a mix of VLS100 and global all cap because I like to be difficult 😁
(I decided I didn’t want as much UK bias as VLS100 but did want some, so started investing into global all cap without selling VLS and am now roughly 50:50. It might not make sense, but if I’m honest I don’t really know which one will provide better returns over the next 40 years and both are pretty much set and forget, doing similar things, so if I’m half in each I guess there’s no serious harm!)

moneyfoolish

If you invested in, say, VLS60 and later decided to reduce risk to VLS40, is there any cost to transferring from one fund to another on Vanguard?