Looking for recommendations for UK type Mutual Funds and ETFs

[Deleted User] · 20 November 2019 at 1:33PM

Can anyone please recommend either institutions or websites to get set up with a good mutual fund or ETF please such as Hargreaves Lansdown, AJ Bell, Vanguard, Interactive Investor etc. I've been researching these companies for quite some time now and watching investment advice videos on youtube but there seems to be pros and cons with all companies and the fees also. The more I read and watch I'm not getting any wiser! LOL
Who are be the best and safest platforms to invest funds with? eg. £20-40k I already have an NHS pension but did not know whether to take out a private pension also or invest in mutual funds.
(I already have £20k in an ISA S&S and will add additional £20k to that next year). I'm talking about additional money. thank you

bowlhead99 · 20 November 2019 at 2:20PM

Vanguard are relatively cheap but they only sell their own product (Vanguard funds and ETFs). The other three you mention are all reputable and offer a very wide variety of investments from lots of fund managers - but each have different fee structures, especially for open ended funds. II has fixed/transaction based charging, HL has a high percentage-of-assets -based charging, and AJ Bell Youinvest has a lower percentage supplemented by relatively low transaction charges.

If you are trying to select a platform, first decide what you want to buy (eg do you want an open ended fund on a fund platform (the Americans call them 'mutual funds', we just call them open-ended 'funds': OEICs or Unit Trusts) or a portfolio of ETFs bought via the stock exchange? The various platforms usually have a different price structure for one type versus the other, but once you know what investment you'd like to buy there are various platform comparison tools or web pages which will help you find a low cost way to buy and hold it.

If you won't need the funds until your late 50s or beyond, a private pension could be very sensible as it offers income tax relief.

"...take out a private pension also or invest in mutual funds" does not make a lot of sense as a question, as a pension is a type of tax wrapper (like an ISA is a tax wrapper), while mutual funds (just call them funds) can be held in either an ISA or in a self-invested pension or unwrapped in a general investment account on a platform.

Albermarle · 20 November 2019 at 3:16PM

but there seems to be pros and cons with all companies and the fees also.

Correct, it is horses for courses as Bowlhead has explained. Try these comparison tools:
https://monevator.com/compare-uk-cheapest-online-brokers/
http://www.comparefundplatforms.com/

know whether to take out a private pension also or invest in mutual funds.

You seem confused about what a private ( defined Contribution ) pension is ( not the same as your NHS pension ) Have a look at this https://www.pensionsadvisoryservice.org.uk/

[Deleted User] · 20 November 2019 at 3:27PM

bowlhead99 wrote: »

Vanguard are relatively cheap but they only sell their own product (Vanguard funds and ETFs). The other three you mention are all reputable and offer a very wide variety of investments from lots of fund managers - but each have different fee structures, especially for open ended funds. II has fixed/transaction based charging, HL has a high percentage-of-assets -based charging, and AJ Bell Youinvest has a lower percentage supplemented by relatively low transaction charges.

If you are trying to select a platform, first decide what you want to buy (eg do you want an open ended fund on a fund platform (the Americans call them 'mutual funds', we just call them open-ended 'funds': OEICs or Unit Trusts) or a portfolio of ETFs bought via the stock exchange? The various platforms usually have a different price structure for one type versus the other, but once you know what investment you'd like to buy there are various platform comparison tools or web pages which will help you find a low cost way to buy and hold it.

If you won't need the funds until your late 50s or beyond, a private pension could be very sensible as it offers income tax relief.

"...take out a private pension also or invest in mutual funds" does not make a lot of sense as a question, as a pension is a type of tax wrapper (like an ISA is a tax wrapper), while mutual funds (just call them funds) can be held in either an ISA or in a self-invested pension or unwrapped in a general investment account on a platform.

Thank you for taking the time to reply and for your recommendations. I'm 44 so I want to invest long term 15-20 years. My adviser mentioned OEICs before to me so maybe I should consider that. I didn't really want to use an advisor for all my funds, I was trying to manage my funds myself so that I can learn to invest but maybe it's best to use the FA.

[Deleted User] · 20 November 2019 at 3:35PM

Albermarle wrote: »

Correct, it is horses for courses as Bowlhead has explained. Try these comparison tools:
https://monevator.com/compare-uk-cheapest-online-brokers/
http://www.comparefundplatforms.com/

You seem confused about what a private ( defined Contribution ) pension is ( not the same as your NHS pension ) Have a look at this https://www.pensionsadvisoryservice.org.uk/

Excellent thank you for sending the links, I will check them out.

Yeah perhaps I am.. I have own NHS pension that I contribute through my work. I was enquiring thinking that maybe I should consider opening a SIPP aswell. I will read the pension link that you sent through.

Many thanks

Thrugelmir · 20 November 2019 at 3:36PM

Deleted_User wrote: »

I was trying to manage my funds myself so that I can learn to invest but maybe it's best to use the FA.

Start by investing in a broad and diversified low cost fund/trust. No one asset class is ever top of the class every year. A good portfolio will perform consistantly whatever.

Albermarle · 20 November 2019 at 7:18PM

I have own NHS pension that I contribute through my work

This is a pension where there is no specific pot of money allocated to you . Instead it guarantees a certain proportion of your salary when you retire . So called Defined Benefit scheme.
If you contribute separately to a private pension , then you will have a specific pot of money, that will normally be invested in the financial markets . so called Defined Contribution scheme . The pot of money will hopefully grow over time but there is no guaranteed income at the end , it all depends on how much you put in , how it is invested and how the markets perform.

Looking for recommendations for UK type Mutual Funds and ETFs

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