stevio
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Post by stevio on Apr 6, 2017 6:19:32 GMT
I have a lump sum in a H&L SIPP that I am looking to invest in S&S for about 6-8 months, before cashing out and transferring into another investment. Should it perform better than the other investment, I might leave it there long term. I realize that S&S is a long term investment, but my alternative is to have it sat there as cash.
I was thinking a low cost tracker might be better than simply holding as cash?
Can anyone recommend a low cost Tracker (via H&L)?
Thanks
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bigfoot12
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Post by bigfoot12 on Apr 6, 2017 8:26:38 GMT
I'm not sure it is ever a good idea to buy shares with an 6-8 month view, but at the moment the amount of political uncertainty seems greater than usual and yet stock markets don't seem to be pricing much risk.
However answering your question it depends on exactly how big your lump sum is, which index you want to track, exactly on how HL fees work and what else you have with them. If the amount of money is relatively large one of the ETFs is probably the cheapest such as Vanguard or some of the newer iShares (watch out some of the older iShares have high fees). If the size of your lump sum is smaller the transaction costs of buying and selling might be bigger than the charges you pay on funds. Vanguard normally have good value funds as well as ETFs.
You might want to consider what will happen to the pound. This could have the greatest impact on your investment over the next 9 months.
Can you invest in something very similar to your future investment? That it what I would try to do.
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bigfoot12
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Post by bigfoot12 on Apr 6, 2017 8:34:19 GMT
BTW: You might get more response if you stick this in Chat, rather than Equities, as Equities is mainly read by people who buy crowd funded equities, rather than people who own a tracker in their ISA or SIPP.
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Post by Financial Thing on May 18, 2017 2:02:18 GMT
I have a lump sum in a H&L SIPP that I am looking to invest in S&S for about 6-8 months, before cashing out and transferring into another investment. Should it perform better than the other investment, I might leave it there long term. I realize that S&S is a long term investment, but my alternative is to have it sat there as cash. I was thinking a low cost tracker might be better than simply holding as cash? Can anyone recommend a low cost Tracker (via H&L)? Thanks You'd be much better holding cash for 6-8 months. The markets are a wee bit frothy at the moment so your downside risk will likely be much larger than your upside. There's a good chance your tracker could be worth less than you paid for it when you need your money.
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