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I think that the advice to avoid funds above is specifically for HL because of their fees on index funds, rather than to avoid index funds per se. I’m sure someone will be along to confirm or rebut that.
The advice is not just for HL customers, similar caps are also in place on the Fidelity and AL Bell platforms.
Also it is not just index funds, it refers to all OEIC funds.
In addition the caps are for 'exchange traded products' so also includes individual company shares and Investment Trusts, as well as ETF's.
The counterbalance factor is that HL charge transaction fees (£11.95?) to buy and sell ETFs but not OEICs.
So monthly contributions could go into an OEIC (in fact I think you can set up regular investing via Direct Debit, unless that's just for ISA and not SIPP). Then annually empty the OEIC into the chosen ETF.
