HSBC FTSE 100 Index Tracker

Rich1234a

Hi,

Is this a reasonably simple thing to set up?  I’m looking for long term lowish risk investment.  I can’t actually find much about it on their website which doesn’t seem to bode well.

Thanks in advance

El_Torro

If you're looking for a lowish risk investment then putting all your investments in the 100 biggest companies in the UK is not what you're looking for. 

A global tracker would be an improvement. Arguably lower risk because it is a lot more diversified. Certainly not considered low risk though. 

A multi asset fund with a reasonable amount of bonds is closer to what you're looking for. However if you invest in a multi asset fund that is 60% equities and 40% bonds it could drop 25% or more in a short space of time. Would you consider this lowish risk?

masonic

This is the sort of thing UK investors might have leaned towards buying 20 years ago. And they'd have been disappointed.

Restricting yourself to such a small part of the global equity market is high risk investing.

singhini

masonic said:

This is the sort of thing UK investors might have leaned towards buying 20 years ago. And they'd have been disappointed.

Restricting yourself to such a small part of the global equity market is high risk investing.

That doesn't bode well for Rachel Reeves who's wanting us all to invest our ISA money in UK companies 

masonic

singhini said:

masonic said:

This is the sort of thing UK investors might have leaned towards buying 20 years ago. And they'd have been disappointed.

Restricting yourself to such a small part of the global equity market is high risk investing.

That doesn't bode well for Rachel Reeves who's wanting us all to invest our ISA money in UK companies 

I wouldn't completely exclude the UK from my investments, nor have I. But I would never go 100% UK when it makes up less than 5% of investable markets. It's arguable that the FTSE 100 is made up of an odd collection of companies, many of which aren't very domestically focused. The FTSE 250 would be a better option to satisfy Reeves' desires (which seem to have been foisted upon her by "the city"). But it's even more important that a measure of the FTSE 250 comes well diluted with companies listed on other markets.

dunstonh

Is this a reasonably simple thing to set up?

Yes. It is a simple thing, but it's not a good thing.  100% into UK equity is poor quality investing.     Its a fund that is designed to be held as part of a wider portfolio and not in isolation.    The UK is around 4% of global market capitalisation.   Yet you want to go 100% into UK and just large caps at that.

I’m looking for long term lowish risk investment.

So, why you picking an investment that would be treated as 9 out 10 on a 10 risk scale or 5 out 5 on a 5 risk scale?

  I can’t actually find much about it on their website which doesn’t seem to bode well.

What website are you looking at?   Remember that HSBC investment funds are not part of HSBC retail banking.

Albermarle

OP - If you read through the main Savings and Investments forum, there are lots of threads about index trackers and more lower risk multi asset funds.
Savings & investments — MoneySavingExpert Forum

wmb194

Rich1234a said:

Hi,

Is this a reasonably simple thing to set up?  I’m looking for long term lowish risk investment.  I can’t actually find much about it on their website which doesn’t seem to bode well.

Thanks in advance

HSBC FTSE 100 Index Tracker

It’s easy, just open an account with a stockbroker. 100% equities isn’t usually considered low risk though. If you want lower risk you could think about a multi asset fund which also owns some bonds.

Albermarle

Although the level of risk diminishes the longer you hold the tracker investments. Over 10 years is usually recommended.
However during that 10 years it might well drop alarmingly a couple of times at least.