Investing newbie

in Savings & investments
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  • edited 13 May at 7:07PM
    ColdIronColdIron Forumite
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    edited 13 May at 7:07PM
    Sandra97 said:
    That platform sounds great, so essentially it's £100 to open, I fund it with 20k, buy HSBC fund that costs £5, then as long as I don't do anything for a year I can sit tight until next year's ISA allowance, fund 20k again and buy more HSBC (assuming I still want that fund at that time) and it's £5?
    Yep, that's about it
    The site is a bit dated and they have a slightly smaller selection of funds than some (though do have most of the popular ones) but for long term buy and hold it's hard to beat

  • AlbermarleAlbermarle Forumite
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    Sandra97 said:
    That platform sounds great, so essentially it's £100 to open, I fund it with 20k, buy HSBC fund that costs £5, then as long as I don't do anything for a year I can sit tight until next year's ISA allowance, fund 20k again and buy more HSBC (assuming I still want that fund at that time) and it's £5?
    Yes that is right ( of course the HSBC fund has its own charge ) .
    The platform/website  is a bit basic compared to some. However your requirements are simple so should be no problem.
  • Sandra97Sandra97 Forumite
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    I think basic can have its advantages, less risk of being a hawk and tracking things daily which I reckon is a bad idea mentally! On that platform there are a few HSBC options, how do I find the one I've been describing here for the global 60:40 fund please? And when I sign up do I just search the same way and press buy?
  • edited 13 May at 8:50PM
    older_and_no_wiserolder_and_no_wiser Forumite
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    edited 13 May at 8:50PM
    Sandra97 said:
    I think basic can have its advantages, less risk of being a hawk and tracking things daily which I reckon is a bad idea mentally! On that platform there are a few HSBC options, how do I find the one I've been describing here for the global 60:40 fund please? And when I sign up do I just search the same way and press buy?
    It's HSBC Global Strategy. There are a few to choose from. In 'risk style' order (lowest to highest equity percentage), they are:

    Cautious
    Conservative
    Balanced (closest to 60/40 split)
    Dynamic
    Adventurous

    Maybe go to the HSBC website to read up on each one to see how they are focused before deciding which is right for you. They aren't a strict 60/40 (or whatever) split as they will change dynamically being a more managed style of fund.

    Choose the Accumulation version of whichever one you require as this will automatically reinvest all dividends back into your investment. 

  • Sandra97Sandra97 Forumite
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    Super, well over the several days since starting this thread I feel 100% more informed, confident about my strategy, happy the risks match my appetite, and wishing I had done this a couple of years earlier but better late than never! Thanks to everyone who has helped me get this far, I might have more questions when I take the fund out (it's likely to be mid next month).
  • edited 14 May at 9:39AM
    JohnWinderJohnWinder Forumite
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    edited 14 May at 9:39AM
     unlike ETFs (and Investment Trusts) which have a fixed number in issue.
    Thanks. As I understand it, if no investor in an ETF will sell any of their units, and other investors want to buy that ETF, then ‘authorised participants’ go into the market and buy some shares of all companies held by the ETF, lump them together in the proportions of the ETF, so that these new ‘units’ are available to be bought by other investors.  This means that despite the demand, and no supply, we don’t see a rise in the price of the units beyond their nett asset value. No price premium of discount.
    https://www.investopedia.com/terms/c/creationunit.asp
    Thus, ETF’s wouldn’t have a fixed number on issue.
    Are funds which are not ETF’s, mutual funds (pooled investors’ money for the purchase of investment assets) which are not exchange traded ie ‘funds’ are non-ET funds?
  • AlbermarleAlbermarle Forumite
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    Are funds which are not ETF’s, mutual funds (pooled investors’ money for the purchase of investment assets) which are not exchange traded ie ‘funds’ and non-ET funds?

    Yes when people talk about 'funds' in this context, they usually mean mutual funds, or more accurately in Europe OEIC's .

  • JohnWinderJohnWinder Forumite
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    Thanks. I edited the third last word of my post to what I intended to type, helping it make sense to even me.
  • Eco_MiserEco_Miser Forumite
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     unlike ETFs (and Investment Trusts) which have a fixed number in issue.
    Thanks. As I understand it, if no investor in an ETF will sell any of their units, and other investors want to buy that ETF, then ‘authorised participants’ go into the market and buy some shares of all companies held by the ETF, lump them together in the proportions of the ETF, so that these new ‘units’ are available to be bought by other investors.  This means that despite the demand, and no supply, we don’t see a rise in the price of the units beyond their nett asset value. No price premium of discount.
    https://www.investopedia.com/terms/c/creationunit.asp
    Thus, ETF’s wouldn’t have a fixed number on issue.

    But ETFs do have a fixed number on issue, until more are created, which is also the case for Investment Trusts, and normal company shares. Thus the price changes with demand and goes to a premium or discount.  When the premium gets too big, more units are created as explained in the Investopedia article.

    Eco Miser
    Saving money for well over half a century

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