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    • russetred
    • By russetred 11th May 18, 2:48 PM
    • 1,220Posts
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    russetred
    SIPP funds
    • #1
    • 11th May 18, 2:48 PM
    SIPP funds 11th May 18 at 2:48 PM
    DH has a SIPP with HL in its second year and has around 2.3k of the tax relief that he would like to invest in a fund leaving the rest as cash. Would anyone know what funds he should be looking at, there are rather a lot on HL. He says he wants an investment for 10 years+ with moderate risk and a low annual cost. I said I would ask on here and see what others have gone for. His idea is to invest the tax relief every year. TIA
    "Sometimes life sucks....but the alternative is unacceptable."
Page 1
    • dunstonh
    • By dunstonh 11th May 18, 3:03 PM
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    dunstonh
    • #2
    • 11th May 18, 3:03 PM
    • #2
    • 11th May 18, 3:03 PM
    Would anyone know what funds he should be looking at
    One that fit his investment strategy. There are about 30,000 investment options on the SIPP. You havent given us much to go on to narrow it down.

    He says he wants an investment for 10 years+ with moderate risk and a low annual cost.
    What is his definition of moderate risk? (ones persons low risk is another persons high risk).
    Does he put charges ahead or returns (i.e. prefer to earn 5% after paying 0.3% charges rather than 6% after paying charges of 0.7%)?
    If he prefers low cost, why is he with HL (one of the most expensive platforms)? Maybe he shouldnt be on a platform at all?
    Last edited by dunstonh; 11-05-2018 at 3:33 PM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Marcon
    • By Marcon 11th May 18, 3:04 PM
    • 492 Posts
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    Marcon
    • #3
    • 11th May 18, 3:04 PM
    • #3
    • 11th May 18, 3:04 PM
    How old is he? If he is keeping everything in cash except an amount equivalent to the tax relief being claimed on his behalf by the provider, he sounds extremely cautious (or unconcerned about inflation risk), so is presumably well into later life?
    • El Torro
    • By El Torro 11th May 18, 3:04 PM
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    El Torro
    • #4
    • 11th May 18, 3:04 PM
    • #4
    • 11th May 18, 3:04 PM
    You're right, there are a lot, in the tens of thousands.

    I think a global tracker is probably the most suitable in his situation. A tracker with 100% equities is going to be pretty volatile (i.e. high risk), he can reduce the volatility by investing in a fund that includes a percentage in bonds.
    • BLB53
    • By BLB53 11th May 18, 3:34 PM
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    BLB53
    • #5
    • 11th May 18, 3:34 PM
    • #5
    • 11th May 18, 3:34 PM
    The best I can recommend would be Vanguard Lifestrategy 60 which offers a blend of 60% equities and 40% bonds and has annual charges of 0.22%.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • zagfles
    • By zagfles 11th May 18, 11:00 PM
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    zagfles
    • #6
    • 11th May 18, 11:00 PM
    • #6
    • 11th May 18, 11:00 PM
    You could have a look at HL's "Master Portfolios" which give suggestions for actively managed funds, or tracker portfolio for passive (lower charges):

    http://www.hl.co.uk/funds/help-choosing-funds/master-portfolios

    http://www.hl.co.uk/funds/index-tracker-funds/tracker-portfolios
    • bostonerimus
    • By bostonerimus 12th May 18, 2:42 AM
    • 2,253 Posts
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    bostonerimus
    • #7
    • 12th May 18, 2:42 AM
    • #7
    • 12th May 18, 2:42 AM
    Like so many other people, you obviously know very little about investing. So I would avoid putting your money in any "funds" until you've acquired some knowledge. The basics are pretty easy. So educate yourself, come up with a straight forward plan and the do it.

    Tim Hale is a financial author that's written some sensible stuff and you can also look a this series of videos too.

    https://www.youtube.com/watch?v=_chiIIxMGl0

    You should also look at other authors that have different perspectives and come to your own conclusions.
    Misanthrope in search of similar for mutual loathing
    • russetred
    • By russetred 13th May 18, 8:01 AM
    • 1,220 Posts
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    russetred
    • #8
    • 13th May 18, 8:01 AM
    • #8
    • 13th May 18, 8:01 AM
    Thanks to everyone for their input. You are of course right we know dash all about funds. To explain a little DH is 58 and on a low income. He opened the SIPP to access the tax relief on a contribution fixed now at 3200 p.a. Rather than leave it in the cash only or take it out he thought he could invest the tax relief but was overwhelmed by options. He has a LG pension for retirement so is not reliant on the SIPP. I will have a look at the funds mentioned and see what he says. Thanks again.
    "Sometimes life sucks....but the alternative is unacceptable."
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