Long Term Investment - Advise on Tracker Funds
Discussion
I am looking for some advise on a long range investment plan. My portfolio is currently very limited based on share schemes from work (which work out very well), a final salary pension and ISA's.
I am looking to save for a lump sum at retirement age, I am currently 30...and while reading several money related websites I came across Tracker Funds. They appealed on the basis of low ongoing costs compared to managed funds, but what I really need is some advise as follows:
- Is there anywhere I can look to work to see fund performance (league table)?
- Are the start up costs heavy with these funds?
- I wish to make regular monthly payments, would there be minimum amounts allowed?
If anyone has been down this road recently and has any advise it would be welcome, I am a total newbie when it comes to these sorts of investments.
I am looking to save for a lump sum at retirement age, I am currently 30...and while reading several money related websites I came across Tracker Funds. They appealed on the basis of low ongoing costs compared to managed funds, but what I really need is some advise as follows:
- Is there anywhere I can look to work to see fund performance (league table)?
- Are the start up costs heavy with these funds?
- I wish to make regular monthly payments, would there be minimum amounts allowed?
If anyone has been down this road recently and has any advise it would be welcome, I am a total newbie when it comes to these sorts of investments.
unit trusts can be expensive. You want something with a minimal TER (total expense ratio)
Look into investment trusts and ETF's
Blood sucking financial advisors get back handers for punting rip off products as per normal commercial practices.
Maybe they are not all Bernard Madhoff's but you get the picture.
Look into investment trusts and ETF's
Blood sucking financial advisors get back handers for punting rip off products as per normal commercial practices.
Maybe they are not all Bernard Madhoff's but you get the picture.
ringram said:
unit trusts can be expensive. You want something with a minimal TER (total expense ratio)
Look into investment trusts and ETF's
Blood sucking financial advisors get back handers for punting rip off products as per normal commercial practices.
Maybe they are not all Bernard Madhoff's but you get the picture.
Bit of a sensationalist generalisation there I thinkLook into investment trusts and ETF's
Blood sucking financial advisors get back handers for punting rip off products as per normal commercial practices.
Maybe they are not all Bernard Madhoff's but you get the picture.
Tracker funds should be free from initial charges and should have a low AMC.
It's unlikely that an IFA would recommend a tracker as they generally don't pay commission so the IFA won't get anything out of it.
HSBC offer a few tracking funds, for instance the FTSE 100 Index fund. There is a minimum investment of £1000 for lump sum and £50/month for DD sub. There are no initial charges.
Most (if not all) trackers will be OEICS. This means that they are single priced. There is no bid/offer spread. Most will also trade on a forward pricing basis meaning that they are dealt at a certain point each day and you will not know the price until the deal has been done.
Hope that helps.
It's unlikely that an IFA would recommend a tracker as they generally don't pay commission so the IFA won't get anything out of it.
HSBC offer a few tracking funds, for instance the FTSE 100 Index fund. There is a minimum investment of £1000 for lump sum and £50/month for DD sub. There are no initial charges.
Most (if not all) trackers will be OEICS. This means that they are single priced. There is no bid/offer spread. Most will also trade on a forward pricing basis meaning that they are dealt at a certain point each day and you will not know the price until the deal has been done.
Hope that helps.
- Is there anywhere I can look to work to see fund performance (league table)?
Trustnet.com is fairly comprehensive
One thing you may wish to consider is; looking for a global index, or even another country index, or possibly a global or country fund. Maybe 50/50 split with a FTSE. Sterling is quite strong at present but that may not last. Two funds would give you a little protection.
I'm not suggesting you rush out and buy Chinese futures, although Monday looks promissing
, but the FTSE 100 is a small index. Heavily reliant on a couple of sectors.
Trustnet.com is fairly comprehensive
One thing you may wish to consider is; looking for a global index, or even another country index, or possibly a global or country fund. Maybe 50/50 split with a FTSE. Sterling is quite strong at present but that may not last. Two funds would give you a little protection.
I'm not suggesting you rush out and buy Chinese futures, although Monday looks promissing
, but the FTSE 100 is a small index. Heavily reliant on a couple of sectors.NoelWatson said:
jeff m said:
but the FTSE 100 is a small index. Heavily reliant on a couple of sectors.
Why do you say that? FTSE 100 is pretty geographically diverse with a reasonable number of dollar divi payers.Funds that track the US fin index have been flying for the past ten days.
UYG good example. Even real estate trackers are doing well (URE)
Have hung my hat on XPP for Monday.
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