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low cost index tracker

(11 Posts)
allthebestplease Thu 20-Apr-17 13:48:26

I'm getting myself confused. If anyone can help please....
I'm wanting to invest in a low cost index tracker and I want that investment to be part of an ISA. But I don't know where or how.

Any advice

Trying2bgd Thu 20-Apr-17 13:53:57

you need to open a shares ISA via an investment platform like Hargreaves Lansdown or fidelity or iii (there are many others, these are the ones I remember!).
It is often better to buy funds via an investment platform sas when you buy direct, a lot of fund managers charge an initial fee whereas if you go indirect they don't - not sure why!

allthebestplease Thu 20-Apr-17 15:02:46

That's good to know.

allthebestplease Thu 20-Apr-17 19:09:53

Does anyone have any recommendations?

SadGuru Thu 20-Apr-17 20:26:41

I'd recommend monevator blog as a starting point to research passive funds or low cost tracker funds. I find the investment platforms with the lowest charges and most options to invest are Charles Stanley Direct and Cavendish Online. I have our ISA invested through these platforms and it was very straight forward setting them up. I'm sure others will come along with some more suggestions.

MovingOnUpMovingOnOut Thu 20-Apr-17 20:28:21

Nutmeg do very low management fees.

evilkitten Thu 20-Apr-17 20:37:21

It so;unds like you've already worked out that the ISA and the investment are two different things, so I'll not labour that point.

If you go with a self select ISA from Hargreaves Lansdowne or similar, then you're going to have a huge range of funds to choose from, including tracker funds, and actively managed funds. There will be a fee for each fund you're invested in, and also a management charge. Some trackers are cheaper than others - the last time I looked, the Fidelity Moneybuilder one was cheapest, but that was a while ago. The Vanguard LifeStrategy funds are also seen as being a good price.

Alternatively, you could go with someone like Virgin Money, who will sell you their own fund - no management charges, but the fund charge is high compared to others.

Someone mentioned Nutmeg. They are an investment management company, who will take your money and invest it in what they think will do well - not usually a tracker. Their fees are higher than a tracker, but lower than an IFA.

The option you want really depends on what risk level you want, how much you're investing, and whether you want to actively manage it yourself, or hand the money over and forget about it.

allthebestplease Fri 21-Apr-17 07:55:29

I want a low risk passive fund so I will look at the fidelity and vanguard. I'll check out Monevator too.
DH has an ISA with Fundsmith and we are happy with the returns. Only puts in £400 a month but it all helps, we want to carry on putting in for 20 years.
I have a SIPP through HL with Chris Woodhead fund. (only get £3600 (?) as I don't work).
So I wanted a low risk tracker, I keep reading that's the way to go as I don't have a lot of money to invest, so I thought having low fees would help.
I thought Id want to be putting in about £300 a month for 20 years.
We have a 20 year plan to be a bit better off than should we not have such a plan 😊

evilkitten Fri 21-Apr-17 09:03:07

The other type of investment you should consider is the Investment Trust - these are closed-ended investment companies that tend to invest for the longer term. I've held Baillie Gifford's Scottish Mortgage Trust and Foreign & Colonial's Investment Trust for over ten years, and they've done OK for me.

I also have a HL SIPP, but mine has Neil Woodford's fund in it. I didn't reckon a former head of OFSTED's stock picks would be that good, tbh. :-)

allthebestplease Fri 21-Apr-17 14:32:11

Ha ha to Ofsted, I heard Chris W talk (lecture once) confused.

Kerplonker Tue 25-Apr-17 14:46:38

Tracker funds aren't necessarily low risk - it depends what they are tracking. You can buy a tracker for any number of markets - the FTSE100, the S&P500, Emerging Markets, Gilts, Corporate Bonds etc. Tracking emerging markets is riskier than tracking the FTSE, which is riskier than a bond index.
Index tracking (passive) funds are higher risk than active funds because they simply follow the market up & down. If you want a low risk investment, think about the type of market you are proposing to track.

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