[Beginner Help] Can I Have Advice on the Best Global Investment Tracking Fund with AJ Bell

[kano]

Dear all,

I'm new to passive investing. I've made an account with A.J. Bell.

I'm looking to invest in a global index fund for the long-term. The # 1 issue is cost.

I went on A.J. Bell's fund screener and had a look for low-cost global index funds.

But, the lowest cost fund there that I could find (Baillie Gifford Rspnb Glb Eq Inc B Acc) still charges : 0.53% , which seems like a lot.

This has only 3 stars on Morningstar, which is making me somewhat wary of it. But, the 5 star-rated funds on Morningstar, like TB Guinness Global Equity Inc Y GBP Acc , has a charge of 0.79% .

Can someone explain the difference between these, and why one is higher-rated than the other?

Sorry for this ignorant question. :\ Thank you in advance to everyone who replies!

-V

 

[gnr7511ministries]

@kano I don’t use AJ Bell but I just googled just now.

As an example, HSBC FTSE All-World Index C Acc has an ongoing charge of 0.13%?

 

[kano]

@gnr7511ministries Thank you very much for your response. The info on AJ Bell's fund search page must mean something else, then.

Sorry I've sort of wasted your time. I'm still a novice!

 

[gnr7511ministries]

@kano No worries buddy. We all start somewhere.

On the fund screener I selected - passive, growth, under 0.5% charge and Fidelity, hsbc and L&G.

 

[kano]

@gnr7511ministries Oh, thank you very much. That's very kind of you.

Any idea why on earth do those high-charging funds have such a high rating on Morningstar?

-V

 

[gnr7511ministries]

@kano I think those are actively managed funds. The costs are not excessively high for an active managed fund.

I don’t know how the Morningstar ratings work and haven’t paid much attention to them over the years. I would guess that 5 stars means it has performed in line with its risk profile, or ahead of it, over time.

 

[jb21]

@kano Cynic mode says; because they pay to be rated...