#101



long story short you can set it up, do one deal, and cancel it so it doesn't try again the next month.
Originally posted by bowlhead99


I've got over 50k matured from a 3 year bond which I want to put into two ITs. Does it seem churlish to use the monthly just to avoid the £9.95, given you pay stamp duty anyway and daily movements could be multiple hundreds either way making the saving look insignificant?



For a weep I nominate Majedie, soon a year on, and 6% down (at one point over 10%) while my other incomes have gone up. I bought it as a contrarian to other fund contents and looks like I got my wish... so far

#102



I've got over 50k matured from a 3 year bond which I want to put into two ITs. Does it seem churlish to use the monthly just to avoid the £9.95, given you pay stamp duty anyway and daily movements could be multiple hundreds either way making the saving look insignificant?
Originally posted by talexuser


Just in case it's a serious question rather than rhetorical:



The biggest driver of your returns over most timescales is asset allocation. Fees should always be secondary. If you were to defer investing a £25k in an investment trust by a whole month to save about £8 of fees (a third of of a tenth of a percent) I would say you had your priorities wrong! Assuming you expect the investment to deliver half a percent or more return over the year, evenly paced, the opportunity missed far outweighs the fee saved.



However I'm sure it's quite possible to get lucky when making your investments by deferring the purchase, missing a loss, and saving money on fees, and feel vindicated for using the cheeky "monthly purchase" scheme to do it. That's not usually what you should *expect* to happen based on probability though, and the reason you're buying the investment trust in the first place is because you expect it to deliver more than cash, so staying in cash so save £8.49 in fees per IT purchase would be rather shortsighted.

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