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Three low-cost investment ideas for the new tax year

We look at three low cost and simple options to consider.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

With the new tax year upon us, lots of investors are looking for investment ideas for their ISAs and pensions. We think tracker funds could be a great starting point.

Part of their appeal is their simplicity. They aim to track the performance of a stock or bond market over time, often by investing in every share or bond in that market.

They're not trying to beat the market so there's less research to do and no expensive analysts to pay. That makes them a low cost way to invest.

Below I look at three trackers you could consider. We think they're some of the best in the market, but like all investments they'll fall and rise in value, so you could get back less than you invest. All investments should be made with the long term in mind. We suggest at least five years.

This article isn’t financial advice. If you’re not sure if an investment is right for you please ask us for advice. Investments should be chosen based on your objectives and attitude to risk.

No place like home?

A fund investing in UK shares is often the first port of call for UK-based investors.

And for good reason. The UK stock market is home to lots of world-class companies. From international giants to a wide range of higher-risk smaller businesses.

It's more diversified than you might think too. The UK’s biggest companies make almost three quarters of their money outside the UK.

Our favourite way to get broad exposure to the UK stock market is the Legal & General UK Index Fund. It tracks the FTSE All-Share, an index of more than 650 UK companies.

HL clients get the ultra-low annual management charge of 0.04%. Our platform charge of up to 0.45% a year also applies.

Find out more about this fund, including charges

Legal & General UK Index Fund Key Investor Information

Land of the rising fund?

Share prices of Japanese companies have risen strongly in recent years, but their earnings have risen even faster. And in the long run, share prices are ultimately driven by how much money companies make. Past performance should not be seen as a guide to the future.

Our analysis tells us Japan's now one of the most attractively-valued developed stock markets.

And that's not all. Prime Minister Shinzo Abe's introduced a Corporate Governance Code aimed at putting shareholders at the centre of all corporate decisions.

It seems to be working. Japanese companies have increased dividends and share buybacks significantly in recent years. And it could be set to continue as the number of companies adopting the Corporate Governance Code increases over time although there are no guarantees.

The iShares Japan Equity Index invests in more than 500 companies across Japan and aims to track the FTSE Japan index.

It’s our favourite way to invest broadly across Japan. And it’s available for just 0.11% annually for HL clients. That’s in addition to our 0.45% per year service charge.

Find out more about this fund, including charges

iShares Japan Equity Index Key Investor Information

Universal appeal

If you don’t want to guess which market or region will do best from one year to the next, why not spread the risk by investing globally?

It’ll let you invest in a diverse range of areas from America and China’s cutting-edge technology sectors to Japan’s leading consumer electronics companies and plenty more besides.

The Legal & General International Index is one of our favourite ways to do it.

It tracks the FTSE World (excluding UK) Index and invests in more than 2,300 companies across the globe, including higher-risk emerging ones.

The annual charge is an exceptionally low 0.08%. Our annual charge of 0.45% to hold funds also applies.

Find out more about this fund, including charges

Legal & General International Index Key Investor Information


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    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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