Are you looking for an easy way to diversify your investment portfolio? Every person wants to have a portfolio with more than hundred companies on it without having to do anything with trading fees. The most sensible and profitable equity investment an investor can make is in an index fund having low cost.
Following are six index funds that are right now the hottest in the market:
1. Legal and General Index Fund 100
Legal and General is one of the cheapest funds in UK. However, it is only available through Hargreaves Lansdowne. This index fund costs at a low rate of 0.06pc. If a person buys this fund elsewhere, it will cost them 0.1pc. With this fund, a person can invest in the hundred largest companies of UK. This index fund allows the investor to sell or buy units every day. A minimum investment of £1m can be made and the fund size is £383.4m.
2. BlackRock Equity Fund 100
This fund closely monitors the FTSE 100. This index fund costs at a low rate of 0.07pc. With this fund, a person can invest in the hundred largest companies of UK. A minimum investment of £100000 can be made and the fund size is £684.6m.
3. Fidelity Index
This index fund aims at providing investors with big capital growth that matches FTSE’s All-Share performance. The fund holds the largest companies of UK that make the benchmark and some smaller company shares that are close to the benchmark. Shares can be sold and bought according to business days. This index fund costs at a low rate of 0.06pc, if the investor buys it through Fidelity Fund or Cavendish Online. If a person buys it from somewhere else, it will cost them 0.09pc. A minimum investment of £500 can be made and the fund size is £1947.4m.
4. Vanguard Index
This index fund tracks the best and largest companies of UK. It has the FTSE developed World equity ex-UK. This index fund costs at a low rate of 0.15pc. This fund does not include British shares. A minimum investment of £100000 can be made and the fund size is £2129.0m.
5. HSBC 100 Index
This fund helps investors invest in the top hundred companies as benchmarked by FTSE. This index fund costs at a low rate of 0.17pc. A minimum investment of £1000 can be made and the fund size is £0.68 B.
6. Source Index 100
This fund provides the index of the hundred highly capitalised companies in UK, trading on London Stock Exchange. This index fund costs at a low rate of 0.20pc.
Bargaining is very important in the marketing business. Index fund is one of the most profitable ways to invest in UK’s cheapest bonds, stocks and funds. Buying an index fund, ETF or a tracker fund from the wrong broker or platform can put you in to debts that you cannot even imagine. If you want to avoid the hassle of paying commission to a broker or a manger then index fund is the best option for you to start your investment career.