gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256 
Likes: 160
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Post by gibmike on Apr 23, 2017 20:22:55 GMT
Thought I would ask here. Problem: Non UK resident, have son and want to add a monthly amount to a portfolio for him. Similar to this: www.ig.com/uk/investments/smart-portfolios/what-is-an-ig-smart-portfolioI have already bought him a few hundred pounds for him in an EFT tracker BUT the fees are about £15 which on £300 is a bit steep. Is there anything available similar to this? I have also looked at Fundsmith but they are very UK centric. Mike
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Post by Financial Thing on May 18, 2017 2:08:36 GMT
Thought I would ask here. Problem: Non UK resident, have son and want to add a monthly amount to a portfolio for him. Similar to this: www.ig.com/uk/investments/smart-portfolios/what-is-an-ig-smart-portfolioI have already bought him a few hundred pounds for him in an EFT tracker BUT the fees are about £15 which on £300 is a bit steep. Is there anything available similar to this? I have also looked at Fundsmith but they are very UK centric. Mike I really like Vanguard's low annual fee Lifestrategy funds. You can buy them through low cost brokerages (about £5 a trade). I've been buying them for years.
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Post by gidoppp01 on May 18, 2017 6:37:49 GMT
Thought I would ask here. Problem: Non UK resident, have son and want to add a monthly amount to a portfolio for him. Similar to this: www.ig.com/uk/investments/smart-portfolios/what-is-an-ig-smart-portfolioI have already bought him a few hundred pounds for him in an EFT tracker BUT the fees are about £15 which on £300 is a bit steep. Is there anything available similar to this? I have also looked at Fundsmith but they are very UK centric. Mike The only way to build a portfolio with low charges is investing in fund. There are No initial charge and performance fee @ Fundsmith, AMC is 1%, Terry Smith is a respectable fund manager IMHO. Personally, I like HL. Simple fee structures, many different products (funds, shares, exchange traded funds and investment trusts) available on the platform compared to other providers with cheaper fees. HL also reduces Initial charges to Zero on a lot of funds. The HL mobile app is very good. www.hl.co.uk/investment-services/investing-for-children/junior-investment-account/charges
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bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
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Post by bigfoot12 on May 18, 2017 8:56:59 GMT
... monthly amount ... fees are about £15 which on £300 is a bit steep. Is there anything available similar to this? £600 every other month?
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Post by Financial Thing on May 18, 2017 12:24:17 GMT
Thought I would ask here. Problem: Non UK resident, have son and want to add a monthly amount to a portfolio for him. Similar to this: www.ig.com/uk/investments/smart-portfolios/what-is-an-ig-smart-portfolioI have already bought him a few hundred pounds for him in an EFT tracker BUT the fees are about £15 which on £300 is a bit steep. Is there anything available similar to this? I have also looked at Fundsmith but they are very UK centric. Mike The only way to build a portfolio with low charges is investing in fund. There are No initial charge and performance fee @ Fundsmith, AMC is 1%, Terry Smith is a respectable fund manager IMHO. Personally, I like HL. Simple fee structures, many different products (funds, shares, exchange traded funds and investment trusts) available on the platform compared to other providers with cheaper fees. HL also reduces Initial charges to Zero on a lot of funds. The HL mobile app is very good. www.hl.co.uk/investment-services/investing-for-children/junior-investment-account/charges While 1% AMC's look insignificant, they end up costing you a fortune over 30+ years. Clever big company unit trust advertising.
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Post by dan1 on May 18, 2017 13:04:00 GMT
The only way to build a portfolio with low charges is investing in fund. There are No initial charge and performance fee @ Fundsmith, AMC is 1%, Terry Smith is a respectable fund manager IMHO. Personally, I like HL. Simple fee structures, many different products (funds, shares, exchange traded funds and investment trusts) available on the platform compared to other providers with cheaper fees. HL also reduces Initial charges to Zero on a lot of funds. The HL mobile app is very good. www.hl.co.uk/investment-services/investing-for-children/junior-investment-account/charges While 1% AMC's look insignificant, they end up costing you a fortune over 30+ years. Clever big company unit trust advertising. I try to think of fees as a percentage of the growth of an investment (by that I mean capital and income). 1% doesn't sound much but if your investment returns 5% then you lose 20% in fees. HL are slick but must be to charge 0.45% on funds uncapped (capped on ETFs and ITs I believe). Compare that to Vanguard trackers that charge under 0.1% and can now be held on their own platform for 0.15%.
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Post by Financial Thing on May 19, 2017 14:09:28 GMT
While 1% AMC's look insignificant, they end up costing you a fortune over 30+ years. Clever big company unit trust advertising. I try to think of fees as a percentage of the growth of an investment (by that I mean capital and income). 1% doesn't sound much but if your investment returns 5% then you lose 20% in fees. HL are slick but must be to charge 0.45% on funds uncapped (capped on ETFs and ITs I believe). Compare that to Vanguard trackers that charge under 0.1% and can now be held on their own platform for 0.15%. Agreed. Best to use a compound interest calculator and compare estimated investment totals after (x) years using say a 6% return vs a 5% return. Then you will really see how damaging a 1% AMC fee is to your long term growth.
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Post by gidoppp01 on May 19, 2017 16:12:12 GMT
True, 1% AMC can be damaging. However, it all depends on the performance of the fund itself. Jupiter India Acc 3 year Annuliased return is 27.86%
It's probably time to invest low cost good return ETFs on iWeb and pay no more ongoing fees to the platform. Just £25 registration and one off £5 dealing charge.
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Post by Financial Thing on May 22, 2017 0:12:58 GMT
True, 1% AMC can be damaging. However, it all depends on the performance of the fund itself. Jupiter India Acc 3 year Annuliased return is 27.86% It's probably time to invest low cost good return ETFs on iWeb and pay no more ongoing fees to the platform. Just £25 registration and one off £5 dealing charge. Jupiter India has lagged the S&P500 which returned 29.33% over 3 years. That's before the fees: front end investment charge (5%+) and a crippling 1.87% AMC. Jupiter is a good example why these types of funds are unlikely to beat the indexes over a long period of time. The fees are too high to overcome. These mega funds are great at advertising though. They've been duping the general public for decades,
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Post by gidoppp01 on May 22, 2017 6:22:33 GMT
Jupiter India has lagged the S&P500 which returned 29.33% over 3 years. That's before the fees: front end investment charge (5%+) and a crippling 1.87% AMC. Jupiter is a good example why these types of funds are unlikely to beat the indexes over a long period of time. The fees are too high to overcome. These mega funds are great at advertising though. They've been duping the general public for decades, To be honest, I have never bought a fund with 5% initial charge, because the provider usually waives the initial charge. There are so many different classes (Class A/B/C/D/I/T/X/R/Z) for the same fund, just pick the one with the lowest charges. Some providers are terrible with choices of fund. For example Jupiter India Class X Acc has 0.69% Net ongoing charge with ZERO initial charge on HL. 3 year Annualised return 29.33%, cumulative performance is +113.7%
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Post by Financial Thing on May 22, 2017 14:06:40 GMT
Jupiter India has lagged the S&P500 which returned 29.33% over 3 years. That's before the fees: front end investment charge (5%+) and a crippling 1.87% AMC. Jupiter is a good example why these types of funds are unlikely to beat the indexes over a long period of time. The fees are too high to overcome. These mega funds are great at advertising though. They've been duping the general public for decades, To be honest, I have never bought a fund with 5% initial charge, because the provider usually waives the initial charge. There are so many different classes (Class A/B/C/D/I/T/X/R/Z) for the same fund, just pick the one with the lowest charges. Some providers are terrible with choices of fund. For example Jupiter India Class X Acc has 0.69% Net ongoing charge with ZERO initial charge on HL. 3 year Annualised return 29.33%, cumulative performance is +113.7% Just curious...why would you choose an actively managed fund with such a high AMC when these funds consistently lag the indexes? Also do you account for the high risk these funds present?
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sand2880
Member of DD Central
Posts: 53
Likes: 17
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Post by sand2880 on Jun 4, 2017 7:33:41 GMT
Vanguard now offer their own platform in the UK.
Restricted to its own funds and offers ISA & GIA with pension wrapper to follow.
Low entry amount and low fees.
For small amounts or just starting to invest, could be a good place to start.
0.15% platform + fund cost. So could get invested at 0.25% all in.
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