Investing newbie

ColdIron

Sandra97 said:

That platform sounds great, so essentially it's £100 to open, I fund it with 20k, buy HSBC fund that costs £5, then as long as I don't do anything for a year I can sit tight until next year's ISA allowance, fund 20k again and buy more HSBC (assuming I still want that fund at that time) and it's £5?

Yep, that's about it

The site is a bit dated and they have a slightly smaller selection of funds than some (though do have most of the popular ones) but for long term buy and hold it's hard to beat

Albermarle

Sandra97 said:

That platform sounds great, so essentially it's £100 to open, I fund it with 20k, buy HSBC fund that costs £5, then as long as I don't do anything for a year I can sit tight until next year's ISA allowance, fund 20k again and buy more HSBC (assuming I still want that fund at that time) and it's £5?

Yes that is right ( of course the HSBC fund has its own charge ) .
The platform/website  is a bit basic compared to some. However your requirements are simple so should be no problem.

[Deleted User]

I think basic can have its advantages, less risk of being a hawk and tracking things daily which I reckon is a bad idea mentally! On that platform there are a few HSBC options, how do I find the one I've been describing here for the global 60:40 fund please? And when I sign up do I just search the same way and press buy?

older_and_no_wiser

Sandra97 said:

I think basic can have its advantages, less risk of being a hawk and tracking things daily which I reckon is a bad idea mentally! On that platform there are a few HSBC options, how do I find the one I've been describing here for the global 60:40 fund please? And when I sign up do I just search the same way and press buy?

It's HSBC Global Strategy. There are a few to choose from. In 'risk style' order (lowest to highest equity percentage), they are:

Cautious

Conservative
Balanced (closest to 60/40 split)

Dynamic

Adventurous

Maybe go to the HSBC website to read up on each one to see how they are focused before deciding which is right for you. They aren't a strict 60/40 (or whatever) split as they will change dynamically being a more managed style of fund.

Choose the Accumulation version of whichever one you require as this will automatically reinvest all dividends back into your investment. 

older_and_no_wiser

This is the HSBC page describing each fund

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/?cid=HBUK:LH:P1:IV:06:2009:057:Wealth_2021&gclid=Cj0KCQjwg_iTBhDrARIsAD3Ib5jrIIAofhr2ttZy4J5qBbAmbzlZj858ND0o689yHdadJRtUeCHacD4aApsFEALw_wcB&gclsrc=aw.ds

[Deleted User]

Super, well over the several days since starting this thread I feel 100% more informed, confident about my strategy, happy the risks match my appetite, and wishing I had done this a couple of years earlier but better late than never! Thanks to everyone who has helped me get this far, I might have more questions when I take the fund out (it's likely to be mid next month).

JohnWinder

 unlike ETFs (and Investment Trusts) which have a fixed number in issue.

Thanks. As I understand it, if no investor in an ETF will sell any of their units, and other investors want to buy that ETF, then ‘authorised participants’ go into the market and buy some shares of all companies held by the ETF, lump them together in the proportions of the ETF, so that these new ‘units’ are available to be bought by other investors.  This means that despite the demand, and no supply, we don’t see a rise in the price of the units beyond their nett asset value. No price premium of discount.
https://www.investopedia.com/terms/c/creationunit.asp
Thus, ETF’s wouldn’t have a fixed number on issue.
Are funds which are not ETF’s, mutual funds (pooled investors’ money for the purchase of investment assets) which are not exchange traded ie ‘funds’ are non-ET funds?

Albermarle

Are funds which are not ETF’s, mutual funds (pooled investors’ money for the purchase of investment assets) which are not exchange traded ie ‘funds’ and non-ET funds?

Yes when people talk about 'funds' in this context, they usually mean mutual funds, or more accurately in Europe OEIC's .

JohnWinder

Thanks. I edited the third last word of my post to what I intended to type, helping it make sense to even me.

Eco_Miser

JohnWinder said:

 unlike ETFs (and Investment Trusts) which have a fixed number in issue.

Thanks. As I understand it, if no investor in an ETF will sell any of their units, and other investors want to buy that ETF, then ‘authorised participants’ go into the market and buy some shares of all companies held by the ETF, lump them together in the proportions of the ETF, so that these new ‘units’ are available to be bought by other investors.  This means that despite the demand, and no supply, we don’t see a rise in the price of the units beyond their nett asset value. No price premium of discount.
https://www.investopedia.com/terms/c/creationunit.asp
Thus, ETF’s wouldn’t have a fixed number on issue.

But ETFs do have a fixed number on issue, until more are created, which is also the case for Investment Trusts, and normal company shares. Thus the price changes with demand and goes to a premium or discount.  When the premium gets too big, more units are created as explained in the Investopedia article.