Advice please on platform and investment for family member please.

TUVOK

A family member aged 37 has never had any investments apart from a savings account with his bank, he now wishes to start a stocks and shares investment.

The amount that he could afford each month would be comparatively small, perhaps about £50- per month with a initial opening of about 3 to 500 pounds. 
I would think a global index tracker such as HSBC all world, Fidelity index P or L&G International might be a good idea, ruled out a Vanguard fund due to high unit values.
I believe that he would wish to see his units rising in number due to lower unit charges than at Vanguard.

The other query is which platform to hold it on, i.e. lowest charges for a fund of this nature.

I would welcome independent advice etc rather than rely entirely on my limited knowledge.
All help would be most appreciated by him and myself.
Thank you.

gravel_2

At that value of regular investing maybe Dodl? No dealing fees. 0.15% annual charge (min £1 per month). Some shares on there (I don't have an account but it looks like a curated list) plus some fund choices per country, sector etc. Their "on top of the world" fund is HSBC all world @ 0.12% fee.

Trading 212 is another low cost option. ETF and shares only but probably suited to people who are more comfortable with investing/want to be more active with it.

wmb194

Find an equivalent ETF and look at Freetrade, Trading212 and CMC Invest.

Cairnpapple

I'm in my 40s and had never invested outside of my pension until this year. I knew I wanted a global tracker in a S&S ISA. 

Once I'd shortlisted some cheap options I ended up going with Dodl (HSBC FTSE All-World Index Fund) because the interface is just ridiculously simple.

ColdIron

Any percentage fee platform that doesn't charge a transaction fee would suit at those levels. Even HL at 0.45% would only cost you about £2.70 for the first year

TUVOK said:

I would think a global index tracker such as HSBC all world, Fidelity index P or L&G International might be a good idea, ruled out a Vanguard fund due to high unit values.

Any similar fund would suit if he is OK with the volatility of 100% equities

Unit values (or do you mean unit prices) are irrelevant with an open ended fund, you can buy fractions of a unit

6 pints of beer are just as good as 12 halfs

I believe that he would wish to see his units rising in number due to lower unit charges than at Vanguard.

His units will only rise in number if he buys more units. Units rise in value, or price per unit

InvesterJones

TUVOK said:

A family member aged 37 has never had any investments apart from a savings account with his bank, he now wishes to start a stocks and shares investment.

The amount that he could afford each month would be comparatively small, perhaps about £50- per month with a initial opening of about 3 to 500 pounds. 
I would think a global index tracker such as HSBC all world, Fidelity index P or L&G International might be a good idea, ruled out a Vanguard fund due to high unit values.
I believe that he would wish to see his units rising in number due to lower unit charges than at Vanguard.

The other query is which platform to hold it on, i.e. lowest charges for a fund of this nature.

I would welcome independent advice etc rather than rely entirely on my limited knowledge.
All help would be most appreciated by him and myself.
Thank you.

Getting some basics right now will pay off massively so they (and you) understand what's happening and whether the investments are giving you a positive return.

As mentioned, OEICs such as Vanguard Lifestrategy or their global all cap index allow fractions of units to be purchased,so unit price is irrelevant. Platform fees on Vanguard are very low.

Your total value should be what's important. Accumulation funds do not increase in terms of number of units, only income/distributing funds, and then only when you use the distribution to purchase more units. For accumulation funds you keep the same number of units and they instead increase in value, rather than taking a cut in value for the distribution.

Alexland

TUVOK said:

I would think a global index tracker such as HSBC all world, Fidelity index P or L&G International might be a good idea

Is that based on some kind of assessment of his risk tolerance? Is he OK it might drop by 30-50% in a bad market crash? Bonds are back to good value so might a multi asset fund give him an easier ride and a more likely positive experience? Global equities might underperform bonds for the next decade who knows.

Petriix

I'd totally recommend Trading212. I am also new to investing and enjoy the ability to buy small numbers of shares at regular intervals. I started with a modest £400 deposit and pay in £1 per day (via debit card to trigger the TSB spend and save cashback).

Through a combination of free shares for referrals, a few dividends, some modest gains and a healthy chunk of cashback (gained through a loophole sadly now closed) my investment is currently around £750.

Because they don't charge any fees for buying or selling shares, it's ideal for someone who wants to regularly buy small numbers of shares. Feel free to DM me if you want some tips about using the platform (though not investment advice!). 

InvesterJones

Petriix said:

I'd totally recommend Trading212. I am also new to investing and enjoy the ability to buy small numbers of shares at regular intervals.

I certainly would NOT be recommending trading individual shares for someone new to investments. Or even someone old to investments really, unless they're doing it for fun.

Alexland

InvesterJones said:

Petriix said:

I'd totally recommend Trading212. I am also new to investing and enjoy the ability to buy small numbers of shares at regular intervals.

I certainly would NOT be recommending trading individual shares for someone new to investments. Or even someone old to investments really, unless they're doing it for fun.

I guess it depends on the shares - a regular contribution into a sensible ETF or investment trust might be fine.

Eyeful

1. As they have never had investments before, I think that they should watch this video to gain some investment understanding:-
https://www.kroijer.com/

2. For first time investing, consider a simple low cost passive Global Multi Asset Index Fund or ETF, at a level of share/bond split they are comfortable with. This may be all they ever need.
Examples:-
https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced
https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

3. Of an adventurous nature, may be take a look at a low cost Global World Index Fund or ETF. You have mentioned some alreay.

4. Use a stocks & shares ISA because of the tax advantage.

5. Consider accumulation units of the fund or ETF, if they do not need the income distribution from the investment. With these the number of units will remain the same but their price will rise to reflect the amount being distributed.

6.  For online brokers look here:-
https://monevator.com/find-the-best-online-broker/