Asalam u Alaikum everyone,
My Colleague told me about a book which is named “I will teach you to be rich” and part of this book author asks to open SIPP and Stocks & Shares ISA account to automate investment. I started searching for Islamic/Halal investing options and came across this amazing forum. I read many posts and watched youtube videos and it seems many are recommending HSBC Islamic Funds. Having said that Book recommends any fund which has fee between 0.2% to 0.3% as the higher the fee the more money we will lose. My question is regarding whom to choose and which funds are better (IC, BC,AD, etc)?
- First option is hargreaves lansdown, if we look at the lowest fee HSBC Islamic fund https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-islamic-global-equity-index-class-bc-accumulation
I am not sure what charges to take into account? ongoing costs are 0.54% but image shows 0.45% management cost and Average annual 1.09% so total cost would be sum of them all?
- second option is AJ Bell https://www.youinvest.co.uk/market-research/FUND:BDCVVD1
it has ongoing cost 0.49%, management cost 0.38% and AMC 0.38%, so total cost would be sum of all%? which is lower than Hargreaves Lawson. are there any other hidden costs?
- Third option (many are suggesting) is freetrade and I am unable to find any cost associated with FreeTrade.
My question is which one do you think is the best out of 3 and does all of them offer SIPP as well?
Is there a calculator to select these funds and calculate how much % it returns after X years. Apologies for writing such a long post and I appreciate whomever will read it.
e.g. $1000, 30 years, 6% return. Gross $5,743.49
With 0.20% fee it will cost $316.36 (5.5%)
With 1.82% (0.92 + 0.45 + other cost) fee it will cost $2,327.39 (40.5%)