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Post by overthehill on May 2, 2024 10:51:42 GMT
Does anyone have experience of the money market funds at Hargreaves Lansdown , they have all returned 5.2% over the last year. Are they worth it ? Cash in the HL account earns 3.8% at the moment. Last time I looked at these funds they were offering 0.1% !
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benaj
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Post by benaj on May 2, 2024 11:11:27 GMT
I dipped a few Money market with my HL sipp. One of them is Fidelity Cash for benmark purposes. I bought on 18th Oct last year and it has risen 2.8% so far, xirr 5.18% before HL fees (0.45%)
meanwhile, other index funds have already grown easily 12% plus. FTSE above 8100?
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dead-money
Rocket to the Moon
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Post by dead-money on May 2, 2024 12:27:51 GMT
Does anyone have experience of the money market funds at Hargreaves Lansdown , they have all returned 5.2% over the last year. Are they worth it ? Cash in the HL account earns 3.8% at the moment. Last time I looked at these funds they were offering 0.1% !
ST MMF interest rates mirror SONIA, so not surprising they return 5.2% when BoE base rate is 5.25%.
You need to deduct the fund costs and HL platform fee for the account you had them in when looking at your net return.
Currently there's no dealing charges for either OEICs or ETFs on HL.
Royal London does an OEIC, B8XYYQ8 and Lyxor on ETF, CSH2
Note that HL don't do fractional ETF shares and the Lyxor ETF has quite a high share price.
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Post by mostlywrong on May 2, 2024 15:04:22 GMT
I note that the Royal London MMF appears to be accumulation only.
Is that how it works?
And how does income tax work in due course?
Does my provider, ii.co.uk in this case, provide a statement to that end or do i have to do the maths at the end of the tax year?
Grateful for advice.
MW
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Post by overthehill on May 2, 2024 15:18:53 GMT
Does anyone have experience of the money market funds at Hargreaves Lansdown , they have all returned 5.2% over the last year. Are they worth it ? Cash in the HL account earns 3.8% at the moment. Last time I looked at these funds they were offering 0.1% !
ST MMF interest rates mirror SONIA, so not surprising they return 5.2% when BoE base rate is 5.25%.
You need to deduct the fund manager costs (shouldn't be high for money market funds) and HL platform fee.
Currently there's no dealing charges for either OEICs or ETFs on HL.
Royal London does an OEIC, B8XYYQ8 and Lyxor on ETF, CSH2
Note that HL don't do fractional ETF shares and the Lyxor ETF has quite a high share price.
I have a SIPP account, works out around 3.8% for uninvested funds, two tiered rates.
HL performance figures are net so after fund costs. Just have to deduct the HL 0.45% account fee, I assume money market funds are treated the same.
ETF funds, investment trusts and shares have a dealing charge, at least in a SIPP.
I'm more interested in ways you can end up not getting the expected return commensurate with the BoE rate. Does the fund price always reflect the correct accrued interest ?
With standard SIPPs these money market funds are the only way to deploy cash safely as there are no fixed term deposit options. For that you need to move SIPP money to InvestAcc.
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mogish
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Post by mogish on May 2, 2024 15:56:08 GMT
I have royal london mmf in my sipp. Only held for just under a year but attacks Sonia so I'm expecting over 5%.
The fidelity platform and fund charge will be deducted .
I'm guessing it will return no more than a fixed rate account, poss less after charges.
My thoughts were hold some cash to see how markets go and benefit from tax relief on contributions .
Suppose it all depends on attitude to risk.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 2, 2024 16:59:21 GMT
Trading 212 5.2% on uninvested funds ... held in QMMF
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registerme
Member of DD Central
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Post by registerme on May 2, 2024 17:01:51 GMT
Trading 212 5.2% on invested funds ... held in QMMF I keep seeing ads for that pop up on youtube. The 5.2% is attractive. Having to use yet another platform less so. I'll see if I can find QMMF on one of the other platforms I use.
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dead-money
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Post by dead-money on May 3, 2024 12:20:37 GMT
ST MMF interest rates mirror SONIA, so not surprising they return 5.2% when BoE base rate is 5.25%.
You need to deduct the fund manager costs (shouldn't be high for money market funds) and HL platform fee.
Currently there's no dealing charges for either OEICs or ETFs on HL.
Royal London does an OEIC, B8XYYQ8 and Lyxor on ETF, CSH2
Note that HL don't do fractional ETF shares and the Lyxor ETF has quite a high share price.
I have a SIPP account, works out around 3.8% for uninvested funds, two tiered rates.
HL performance figures are net so after fund costs. Just have to deduct the HL 0.45% account fee, I assume money market funds are treated the same.
ETF funds, investment trusts and shares have a dealing charge, at least in a SIPP.
I'm more interested in ways you can end up not getting the expected return commensurate with the BoE rate. Does the fund price always reflect the correct accrued interest ?
With standard SIPPs these money market funds are the only way to deploy cash safely as there are no fixed term deposit options. For that you need to move SIPP money to InvestAcc.
Yes, MMFs increment interest daily in arrears.
You could use short dated corporate bond funds if you want to move up the risk spectrum for above BoE returns. (short dated UK Gilt funds will return below BoE rate.)
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Post by overthehill on May 3, 2024 13:18:35 GMT
I have a SIPP account, works out around 3.8% for uninvested funds, two tiered rates.
HL performance figures are net so after fund costs. Just have to deduct the HL 0.45% account fee, I assume money market funds are treated the same.
ETF funds, investment trusts and shares have a dealing charge, at least in a SIPP.
I'm more interested in ways you can end up not getting the expected return commensurate with the BoE rate. Does the fund price always reflect the correct accrued interest ?
With standard SIPPs these money market funds are the only way to deploy cash safely as there are no fixed term deposit options. For that you need to move SIPP money to InvestAcc.
Yes, MMFs increment interest daily in arrears.
You could use short dated corporate bond funds if you want to move up the risk spectrum for above BoE returns. (short dated UK Gilt funds will return below BoE rate.)
A strange way to emphasize a point that 'there are no dealing charges' when it is only for new accounts and it is only the first £100 for trades between 1may and 21june !
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dead-money
Rocket to the Moon
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Post by dead-money on May 3, 2024 13:39:17 GMT
It's not only new accounts, but whatever, you do you.
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mogish
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Post by mogish on May 3, 2024 15:26:16 GMT
Can anyone explain why my RL corporate bond fund is achieving only 2.7% whenRL mmf is nearly double that?
I know defaults, risk etc affect performance but I believed corporate bonds performed better due to risk and returns were more for that reason.
Starting to think bonds(dampen overall portfolio volatility) are no better than cash.
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