Thoughts for simple investment ISA?

truescot

Appreciate all the comments but the civersation is veering strongly into territory I have no knowledge of or real interest in. I am looking for a Global Tracker Fund which requires no ongoing management on my part and with as low fees as possible. I have no interest at this stage in managing or choosing assets myself but merely looking for something which is LIKELY to outperform cash over 5 to 10 years. It seems there may be less costly ways than HSBC Global Stategy which require no more ongoing effort on my part?

kempiejon

truescot said:

Appreciate all the comments but the civersation is veering strongly into territory I have no knowledge of or real interest in. I am looking for a Global Tracker Fund which requires no ongoing management on my part and with as low fees as possible. I have no interest at this stage in managing or choosing assets myself but merely looking for something which is LIKELY to outperform cash over 5 to 10 years. It seems there may be less costly ways than HSBC Global Stategy which require no more ongoing effort on my part?

Sorry about the divert. There are no less costly ways without ongoing management..

masonic

kempiejon said:

masonic said:

I would think if you already have a multi-fund strategy you are happy with managing yourself, and are not concerned about a bit of extra volatility, there is probably not much of a case to switch to something like this. But I could see myself returning to a simple multi-asset fund in my twilight years when I no longer have the interest or aptitude to take a hands on approach. These funds are also a great place to start for a newbie. For more experienced and interested investors, perhaps not so much.

Just to pick up a bit on this. I concur a great place to start for a newbie. Starting can be the hard bit, then there's sticking at it, then let time do its work. For me it's been profitable diversifying away from cash any surplus.
Farming the work out isn't my thing, I also buy single company stocks, bonds etc. and I hold myself more responsible than a fund manager may be.
My return to a simpler strategy when interest or skills wane is a capital weighted global replicator, like the previously mentioned Vanguard Developed Global.
Non scientifically, I eyeballed a chart and my global looks better than that HSBC in the Adventurous breed. So far. And cheaper.

Nothing wrong with that approach. I hold a mixture of ETFs and investment trusts myself, as I had my fill of stockpicking when I was younger and more enthusiastic. Likewise, a broadly diversified global equity fund is a nice simple solution if you have the risk appetite for that at the time. Most do not, but not much point taking a view until you reach that point. I would expect that a global index fund would outperform a multi-asset fund holding some (~20%?) bonds, especially following the collapse in bond prices we've just witnessed. But also over the long term. If you can stomach it, 100% equities will tend to outperform any flavour of mixed asset fund.

truescot

kempiejon said:

Sorry about the divert. There are no less costly ways without ongoing management..

No apology meeded, I was just picking up on your comment in your original response that "there are cheaper, simpler passive global stock market vehicles out there" and I wondered what some examples are? I will look at the monevator link you kindly shared.

masonic

truescot said:

Appreciate all the comments but the civersation is veering strongly into territory I have no knowledge of or real interest in. I am looking for a Global Tracker Fund which requires no ongoing management on my part and with as low fees as possible. I have no interest at this stage in managing or choosing assets myself but merely looking for something which is LIKELY to outperform cash over 5 to 10 years. It seems there may be less costly ways than HSBC Global Stategy which require no more ongoing effort on my part?

The fund you've picked would meet that objective at a very low cost. Cheaper options that would be a single fund would involve considerably more risk, or options at the same risk level would require more complexity. So you have found the sweet spot for your objectives.

truescot said:

No apology meeded, I was just picking up on your comment in your original response that "there are cheaper, simpler passive global stock market vehicles out there" and I wondered what some examples are? I will look at the monevator link you kindly shared.

An example would be HSBC FTSE All World Index, but this is 100% equities, so a lot more risky than the fund you picked, while the OCF is 0.13%, so not significantly cheaper. But I would suggest this is too risky for most people to hold on its own.

truescot

Final question is whether there is any advantage in going through a platform such as iWeb or Trading212 to open this HSBC GS portfolio or if I should just go through HSBC direct as I have no intention of my investments getting any more complex?

masonic

truescot said:

Final question is whether there is any advantage in going through a platform such as iWeb or Trading212 to open this HSBC GS portfolio or if I should just go through HSBC direct as I have no intention of my investments getting any more complex?

Trading212 only offers exchange traded investments, so it isn't an option for your HSBC fund. So it is between HSBC's fund platform (charging 0.25% pa on top of your fund fee) or iWeb (charging a one-off £5 trading fee, then nothing additional to hold the investment). It would seem like a no-brainer to me.

kempiejon

truescot said:

kempiejon said:

Sorry about the divert. There are no less costly ways without ongoing management..

No apology meeded, I was just picking up on your comment in your original response that "there are cheaper, simpler passive global stock market vehicles out there" and I wondered what some examples are? I will look at the monevator link you kindly shared.

A simpler cheaper all passive approach is 100% stocks using something like Vanguard global developed ETF VEVE at 0.12% fee but the risk is very different to HSBCs active, affordable, risk-managed and globally diversified multi-asset portfolios. One could add more etfs to the mix to try and replicate the HSBC product but that's more hands on needing regular updating. Just VEVE is more risky but long term the rewards have been better.

You asked about where to hold the HSBC product. As I don't use packaged multi asset funds I can't specifically help with the best place to hold them. Some platforms charge a % for holding, HSBC want another 0.25% on top of fund fees. Some brokers charge a flat fee for each trade, some offer some products fee free. Different platforms have different charges depending upon what products you intend to buy, some are better value than others.
Some more reading comparing brokers https://monevator.com/compare-uk-cheapest-online-brokers/

Eyeful

1. If you have looked at and read the information supplied to your 26 June 2024 post and have decided on using the HSBC Global Strategy Balanced portfolio ISA, then go for it.

2. Remember:-
Investing means putting your money at risk, you hope to get out more than you put in. There are no guarantees.
Longer you stay invested, the higher the chance of winning the investment game, (10 years is better than 5 years).
In the short term you are the punter going into the casino. In the long term you own the casino.
Do not jump ship just because the market crashes, a very common reaction by new investors. That is the certain the way to lose your money. Market crashes are part of investing, as are market recovery.

Audaxer

truescot said:

Final question is whether there is any advantage in going through a platform such as iWeb or Trading212 to open this HSBC GS portfolio or if I should just go through HSBC direct as I have no intention of my investments getting any more complex?

Another option for holding a HSBC Global Strategy fund with very low platform costs is on the Halifax Share Dealing platform. There is a small annual platform cost, which I think is still only £36, no matter how much you have invested.