With this sort of thing, it's mainly about cost. Looks like it costs 49bps per annum. Seems high to me but I might be wrong
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I am not a seasoned investor but want to start putting some money away.
I quite like the sound of these as an alternative to the Vanguard Lifestrategy funds.
What are people's view on these? I would opt for the balanced.
With this sort of thing, it's mainly about cost. Looks like it costs 49bps per annum. Seems high to me but I might be wrong
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It's not "mainly" about cost but your view on asset allocation that more closely matches the fund managers.
Blackrock also have one called MyMap (the MyMap5 being closest to your HSBC balanced or the VLS60).
https://www.blackrock.com/uk/interme...oducts/308808/
A comparison on the Interactive Website:
https://www.ii.co.uk/analysis-commen...itans-ii512633
If you were driven by cost alone, look at the OCF.
HSBC - 0.49%
VLS60 - 0.22%
MyMap5 - 0.17%
And then there are platform costs to add onto that. Your choice depends on how large your pot is and some are % based, some a fixed £ per annum.
Last edited by broxie; 27th November 2020 at 21:15.
thanks Broxie, interesting read, nothing is as simple as it appears, sigh
When you say "put some money away". It depends what it's for and how old you are and your attitude to risk etc. Probably the most important thing in saving or investing is tax sheltering. There is a shed load of difference between a 35 year old wanting to stash £40k a year into a pension than a 60 year old wanting to build a rainy day easy access cash pot.
And before saving/investing, make sure you don't have any high (above 4-5%) interest debt as it's "easy money" clearing that first before saving the surplus. Then there are the tax shelters, an ISA at £20k a year (early ISA adopters now have a million quid in ISA pots). They are tax paid on the way in, tax free on the way out.
Then a SIPP. The annual allowance is currently £40k. Pay that in by salary sacrifice from a high rate tax paid job then draw it out as a basic rate tax payer in retirement is a big leg up. (Tax free on the way in, tax paid on the way out).
As I said, it all depends what the purpose of the investment is. If you're just planning to jump on the rollercoaster that has been 2020, then perhaps you might be too late. And always remember, it's time in the market, not timing the market.
I use both Lifestrategy & HSBC GS funds - most of the money is in VLS80 ISA / VLS100 SIPP and some in HSBC GS Dynamic in another SIPP. The reason I like an amount of HSBC funds is that they have a lower UK percentage, some consider that Vanguard is too UK centric. HSBC are slightly more expensive but I like the slight mix / difference so quite happy to use them both.
Isn’t the Vanguard FTSE Global all cap similar to LS100 but without uk bias?
Has a Ocf of 0.23%
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If investing for the longer term, go for lowest OCF possible and stick them in ISAs or SIPPs. I've recently come across this page which helped me decide:
https://monevator.com/low-cost-index-trackers/
Thanks for that post.
I tried to find it but monevator still likes the Vanguard funds. I would prefer less of a UK bias
All the money is in a ISA, so am happy to leave it there for now.
I’d be thinking about actively managed global funds for less UK exposure.