What would your opinion be if I were to invest in AJ Bell's 'Moderately Adventurous' fund as well as their 'responsible growth' fund?

23 May 2022

Question by Lara

Hello!

I have been wanting to start my investing for a few months now. I have been looking at places like Vanguard, InvestEngine, BestInvest and AJ Bell. I am wondering, what would your opinion be if I were to invest in AJ Bell's 'Moderately Adventurous' fund as well as their 'responsible growth' fund? My problem is, I want to invest but I want it to be responsible but don't want to only have a responsible fund alone. I am worrying it will end up with me paying twice the fees.
Hope that all makes sense.


Answered by Boring Money

Hi Lara

If you want to invest responsibly, splitting investments between a fund that invests that way and another more 'mainstream' fund will of course still mean some of your money is 'doing good' and diversify your investments.

Assuming the fees on the platform you invest with are set on a percentage basis, you shouldn't end up paying double fees. You should only pay more fees where there are fixed transaction costs.

For instance I know AJ Bell's YouInvest platform charges £1.50 per fund buy or sell, so you'd pay £3 by buying two funds rather than £1.50 for one. They charge 0.25% on funds held in an ISA or General Investment Account on portfolios up to the value of £250,000. So for them you'd pay £3 to buy in and 0.25% on an ongoing basis on the value of the portfolio of funds. On a portfolio of £10,000 you'd pay £28 in the first year (£3 initial purchase and £25 ongoing charges). In year two you'd pay £25 (assuming you don't buy or sell any more funds).

I'm not advocating using AJ Bell over any other platform, just thought they'd be useful to use as an example given you mentioned them!

Happy to help further if you have any more questions about this.

All the best

Jamie

Answered by

Boring Money