Hi,
Just wondering on any thoughts/issues with the L+G index trackers via Hargreaves Lansdown? I have been paying down debt and have Cash Isa, other savings for bills, emergencies etc and now wish to move back to Stocks+Shares.
Minimal input and frankly a low monthly investment for the 1st couple of years. So therefore thinking index tracker, some research came up with L+G via H+L to bring fee and monthly investment below £50.
Small change to some but it's what i have budgeted at this time.
Any downsides?
C
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L+G via Hargreaves Lansdown
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- The full Lemon
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Re: L+G via Hargreaves Lansdown
I don't know anything about Hargreaves Lansdown, and there is a separate board for brokers and share dealers if your question is more about their fees and service. But if this is your first/only investment then a tracker/index fund is the best way to start - broadly diversified with low internal fees.
If H-L offer them, also take a look at the Vanguard funds which are often the cheapest in their category, and with a great reputation for tracking fidelity and ethical behaviour. Either way I don't see any downside.
I'd look out for pesky fees and charges for the platform. I feel sure others who use H-L can advise on that. Typically for small regular amounts, OEIC's are more cost-efficient than ETF's.
If H-L offer them, also take a look at the Vanguard funds which are often the cheapest in their category, and with a great reputation for tracking fidelity and ethical behaviour. Either way I don't see any downside.
I'd look out for pesky fees and charges for the platform. I feel sure others who use H-L can advise on that. Typically for small regular amounts, OEIC's are more cost-efficient than ETF's.
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- 2 Lemon pips
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Re: L+G via Hargreaves Lansdown
Yes, as a first investment a low cost, broadly diverse index fund would be a good choice. However HL are relatively expensive - platform fees are 0.45% compared to say Charles Stanley Direct 0.25%.
For low cost you need to consider the index fund charges + platform provider combined. Also think about asset allocation - do you want all equities? If not have a look at the Vanguard Lifestrategy option.
For low cost you need to consider the index fund charges + platform provider combined. Also think about asset allocation - do you want all equities? If not have a look at the Vanguard Lifestrategy option.
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- Lemon Half
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Re: L+G via Hargreaves Lansdown
You might find it cheaper to use II as your broker and Vanguard index funds. £80/yr includes four free trades, no platform charges for assets at all. Or you can set it up to do one trade per month at a £1.50/mth fee. See http://www.iii.co.uk/our-services/shares-funds-account .
regards, dspp
regards, dspp
Re: L+G via Hargreaves Lansdown
Hi,
Fixed fee brokers like Interactive Investor (see a previous post) tend to be expensive for smaller fund holdings and very good value for bigger ones.
I understand you are starting off slow and maybe II or similar would turn out expensive - you can always change later.
For instance, HL's 0.45% annual charge on 10K of funds would be £45 vs £80 with II and my understanding is you wouldn't reach that level all that soon. As I expect you know, HL charge nothing for fund trades.
There are other brokers who probably charge less than HL - one was noted above and there is also AJ Bell, who charge 0.25% plus £1.50 per trade.
I know that HL have an extra reduction on some funds, including L&G's. I'm not sure which ones you are considering, but I think it will be less than a 0.05% reduction.
The summary, updated recently, of platform charges often referenced on the MF boards is at:
http://monevator.com/compare-uk-cheapes ... e-brokers/
As another respondent said, Vanguard have a great range of cheap tracker funds, including the 'all in one types' that are the Lifestrategy range . I have some and I also use HSBC for FTSE 100/All-share/250.
I expect if I had started with a strong conviction re tracker funds/passive investing, or were starting again, I might well choose Lifestrategy100 (no bonds, but you can also choose ones with 20%, 40, 60, 80% bonds). I would have made a very good choice and done a lot less 'tinkering' than I have in the past(bad).
A disclosure, rather than a recommendation: Our funds are with II, our ETF trackers are with HL and AJ Bell.
Chloe
Fixed fee brokers like Interactive Investor (see a previous post) tend to be expensive for smaller fund holdings and very good value for bigger ones.
I understand you are starting off slow and maybe II or similar would turn out expensive - you can always change later.
For instance, HL's 0.45% annual charge on 10K of funds would be £45 vs £80 with II and my understanding is you wouldn't reach that level all that soon. As I expect you know, HL charge nothing for fund trades.
There are other brokers who probably charge less than HL - one was noted above and there is also AJ Bell, who charge 0.25% plus £1.50 per trade.
I know that HL have an extra reduction on some funds, including L&G's. I'm not sure which ones you are considering, but I think it will be less than a 0.05% reduction.
The summary, updated recently, of platform charges often referenced on the MF boards is at:
http://monevator.com/compare-uk-cheapes ... e-brokers/
As another respondent said, Vanguard have a great range of cheap tracker funds, including the 'all in one types' that are the Lifestrategy range . I have some and I also use HSBC for FTSE 100/All-share/250.
I expect if I had started with a strong conviction re tracker funds/passive investing, or were starting again, I might well choose Lifestrategy100 (no bonds, but you can also choose ones with 20%, 40, 60, 80% bonds). I would have made a very good choice and done a lot less 'tinkering' than I have in the past(bad).
A disclosure, rather than a recommendation: Our funds are with II, our ETF trackers are with HL and AJ Bell.
Chloe
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- Lemon Slice
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Re: L+G via Hargreaves Lansdown
Hargreaves Lansdown's provide an excellent service but do charge a .45% annual fee on funds in a taxed account but no charge on shares, investment trusts and ETF's in a taxed shares account.
An ETF is an alternative fund structure that trades like a share but is generally an index tracker, this might be a sensible alternative. Vanguard, iShares and State Street are all very good generally. The cost savings mount up over time !
If you want to hold funds in a non isa account, look at Halifax Share Dealing as they have no Ad Valoreum charge
An ETF is an alternative fund structure that trades like a share but is generally an index tracker, this might be a sensible alternative. Vanguard, iShares and State Street are all very good generally. The cost savings mount up over time !
If you want to hold funds in a non isa account, look at Halifax Share Dealing as they have no Ad Valoreum charge
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