HSBC Global Strategy funds

LouP25

Hi friends, I am looking to invest £500 (to start with) into HSBC Global Strategy fund. I was about to open HSBC account, but found information that I can use Fidelity platform instead. So, my question is: should I open HSBC or Fidelity account? Thank you

MX5huggy

Which HSBC platform? One is £42 per year the other charges 0.25% (£1.25 on £500). Fidelity charge 0.35% platform fee so £1.75. I would use Fidelity if you had any plan to invest is something non HSBC. 

eskbanker

LouP25 said:

Hi friends, I am looking to invest £500 (to start with) into HSBC Global Strategy fund. I was about to open HSBC account, but found information that I can use Fidelity platform instead. So, my question is: should I open HSBC or Fidelity account? Thank you

The Global Strategy funds can be held on the majority of platforms, so don't feel that you're constrained to those two options.

LouP25

MX5huggy said:

Which HSBC platform? One is £42 per year the other charges 0.25% (£1.25 on £500). Fidelity charge 0.35% platform fee so £1.75. I would use Fidelity if you had any plan to invest is something non HSBC. 

I am also thinking of L&G Multi Index funds. Same question here, the best platform. 

I am already investing high risk on Aegon, and made my mind to put in another £500 to Vanguard life strategy this year. Should I instead just grow Aegon and Vanguard life strategy savings and forget about HSBC and L&G? Or is it better to try a bit of all? I'm 32 years old.

tigerspill

Have a look here when choosing a platform

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

eskbanker

LouP25 said:

I am also thinking of L&G Multi Index funds. Same question here, the best platform. 

I am already investing high risk on Aegon, and made my mind to put in another £500 to Vanguard life strategy this year. Should I instead just grow Aegon and Vanguard life strategy savings and forget about HSBC and L&G? Or is it better to try a bit of all? I'm 32 years old.

What are you actually trying to achieve?  Spraying small amounts of money around into multiple different multi-asset funds isn't an obvious solution but we don't know what you're trying to solve....

LouP25

eskbanker said:

LouP25 said:

I am also thinking of L&G Multi Index funds. Same question here, the best platform. 

I am already investing high risk on Aegon, and made my mind to put in another £500 to Vanguard life strategy this year. Should I instead just grow Aegon and Vanguard life strategy savings and forget about HSBC and L&G? Or is it better to try a bit of all? I'm 32 years old.

What are you actually trying to achieve?  Spraying small amounts of money around into multiple different multi-asset funds isn't an obvious solution but we don't know what you're trying to solve....

I guess I am trying to see which one grows faster with less fees. There is so much comparisons online, that I was trying to test "on my own skin". 

LouP25

tigerspill said:

Have a look here when choosing a platform

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

thank you!

Albermarle

LouP25 said:

eskbanker said:

LouP25 said:

I am also thinking of L&G Multi Index funds. Same question here, the best platform. 

I am already investing high risk on Aegon, and made my mind to put in another £500 to Vanguard life strategy this year. Should I instead just grow Aegon and Vanguard life strategy savings and forget about HSBC and L&G? Or is it better to try a bit of all? I'm 32 years old.

What are you actually trying to achieve?  Spraying small amounts of money around into multiple different multi-asset funds isn't an obvious solution but we don't know what you're trying to solve....

I guess I am trying to see which one grows faster with less fees. There is so much comparisons online, that I was trying to test "n my own skin". 

If the market turns , your interest will presumably switch to the one that goes down the least, which probably will not be the one that grows the fastest in good market conditions.
You can only really measure one fund against another over a long period of time /over a market cycle .

AlanP_2

You can see the performance of each one on the fund fact sheets, you don't need to invest in each one to track performance.

Performance is quoted after fund fees but not platform fees as they would vary by individuals choice.

To be honest, I would think that if you chose a roughly equal risk fund from each range you would see very little difference in performance over say a 10 year period.

VLS is probably slightly behind the other 2 at the moment as it has a higher UK equity content and other sectors have given better returns than UK over last few years. 

dunstonh

LouP25 said:

eskbanker said:

LouP25 said:

I am also thinking of L&G Multi Index funds. Same question here, the best platform. 

I am already investing high risk on Aegon, and made my mind to put in another £500 to Vanguard life strategy this year. Should I instead just grow Aegon and Vanguard life strategy savings and forget about HSBC and L&G? Or is it better to try a bit of all? I'm 32 years old.

What are you actually trying to achieve?  Spraying small amounts of money around into multiple different multi-asset funds isn't an obvious solution but we don't know what you're trying to solve....

I guess I am trying to see which one grows faster with less fees. There is so much comparisons online, that I was trying to test "n my own skin". 

L&GMI, Liontrust, Blackrock, VLS, HSBC GS are all variations of the theme.  They all use underlying passive funds.  The main differences are
1) some are fettered. Some are unfettered - fettered is where they use their own in-house funds. Unfettered is where they use funds from other fund houses as well as their own.
2) Some have rigid weightings with no risk targeting. Others have fluid weightings and are risk targetted
3) cost

If you put small amounts into one of each in the range you are not really achieving anything.   Vanguard Lifestrategy has been disappointing for several years now but that is more to do with where it has invested more heavily with its management decisions happened not to do very well.  In a different period, it could be the opposite.  Whereas HSBC GS has done better because it was heavier in the growth areas in that period but could be in the wrong areas the next.

Until you get to around £8000, it doesn't really matter where you invest.  The differences in return are not that noticeable and you are just making it messy for yourself if you hold multiple £500 with different platforms/providers.

Charges are broadly similar and you should probably ignore the transaction charges (TC) column as the fund houses in question are using different methods to calculation the TC.  One of them uses a method that allows it to periodically report negative charges whilst others do not use that method and cannot show a negative.