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Going solo

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  • Albermarle
    Albermarle Posts: 27,675 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Brie said:
    Jumping in here - what do people mean by "avoiding funds"?  And ETF?
    ETF = exchange traded funds

    https://monevator.com/etfs-vs-index-funds-differences/

    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. 
  • Qyburn
    Qyburn Posts: 3,564 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    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.
  • BobR64
    BobR64 Posts: 28 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    If it's a regular monthly payment into an ETF, HL do not charge anything.
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