Moneywise's First 50 Funds - 20 cheap tracker funds

See our 50 first funds for beginners homepage for links to the other funds in the list.

Instant portfolios

Vanguard LifeStrategy 20% Equity Inc or Acc
A low-risk fund that provides some upside potential from investing while limiting the risk of losing your money, it has 20% exposure to globally diversified equities with the remainder in globally diversified government and corporate bonds. The underlying portfolios are wholly  made up of Vanguard index tracker funds. For a bit more risk, use the 40% equity version.
OCF: 0.24%
ISIN – Inc: GB00B4620290

Vanguard LifeStrategy 60% Equity Fund Inc or Acc
This instant medium-risk portfolio has 60% exposure to globally diversified shares with the rest in globally diversified government and corporate bonds.
OCF: 0.24%
ISIN – Inc: GB00B4R2F348
Acc: GB00B3TYHH97

Vanguard LifeStrategy 100% Equity Fund Inc or Acc
This one-stop fund is aimed at higher-risk investors, who don’t want to think about how to put a portfolio together. The main stock market exposure is to US shares, followed by UK shares. To reduce risk, go for the 80% version.
OCF: 0.24%
ISIN - Inc: GB00B545NX97
Acc: GB00B41XG308


UK Shares

BlackRock 100 UK Equity Fund D Acc
By tracking performance of the FTSE 100 Index of the biggest companies traded on the London Stock Exchange, it seeks to achieve capital growth.
OCF: 0.06%

Fidelity Index UK Fund W Inc or Acc
It aims to replicate performance of the FTSE All Share Index. This index represents 98% of companies traded on the London Stock Exchange.
OCF: 0.08%
ISIN – Inc: GB00BP8RY721
Acc: GB00BLT1YM08

HSBC FTSE 250 Index C Inc or Acc
Its goal is to provide long-term capital growth by matching the return of the FTSE 250 index, which represents medium-sized companies on the London Stock Exchange.
OCF: 0.18%
ISIN – Inc: GB00B80QFZ35
Acc: GB00B80QG052

Vanguard FTSE UK Equity Income Index Inc or Acc
Offering low-cost, diversified access to higher income UK shares, it tracks performance of the FTSE UK Equity Income Index, made up of the highest-dividend paying shares among the largest 350 companies on the London Stock Exchange.
OCF: 0.22%
ISIN – Inc: GB00B5B74684
Acc: GB00B59G4H82

Overseas shares

Fidelity Index World Fund W Inc or Acc
A good fund to start a portfolio with, it tracks performance of the MSCI World Net Return Index of large- and medium- sized companies from more than 12 developed countries.
OCF: 0.15%
ISIN – Inc: GB00BP8RYC79
Acc: GB00BLT1YP39

Vanguard FTSE Developed World ex-UK Equity Index Fund Inc or Acc
A good diversifier if you already have a lot of UK exposure in your portfolio.
OCF: 0.15%
ISIN – Inc: GB00B5B74F71
Acc: GB00B59G4Q73

L&G International Index Trust I Inc or Acc
Tracking performance of the FTSE World (ex UK) Index, which has a broad spread of company shares from developed and emerging markets globally (excluding UK companies), it’s cheaper than the Vanguard fund. However, it includes emerging markets countries, so might be a bit riskier.
OCF 0.13%
ISIN – Inc: GB00B2Q6HX78
Acc: GB00B2Q6HW61

Vanguard FTSE Developed Europe ex-UK Equity Index Inc or Acc
Good for instant exposure to developed countries in Europe. Its main exposure is to French, German and Swiss companies.
OCF: 0.12%
ISIN – Inc: GB00B5B74N55
Acc: GB00B5B71H80

Higher risk overseas shares

Vanguard Global Small Cap Index Fund Inc or Acc
It tracks performance of the MSCI World Small Cap Index of smaller companies in developed countries.
OCF: 0.38%
ISIN – Inc: IE00B3X1LS57
Acc: IE00B3X1NT05

Fidelity Index Emerging Markets W Inc or Acc
It aims to achieve long-term capital growth by closely matching performance of the MSCI Emerging Markets Index of rapidly developing economies.
OCF: 0.23%
ISIN – Inc: GB00BP8RYV68
Acc: GB00BLT1YT76

US shares

HSBC American Index C Inc or Acc
Seeking long-term capital growth, it matches the return of the S&P 500 Index of 500 large companies listed on the New York Stock Exchange or NASDAQ (another American stock exchange).
OCF: 0.08%
ISIN – Inc: GB00B80QG490
Acc: GB00B80QG615

Legal & General US Index I Inc or Acc
Its goal is to track performance of the FTSE USA Total Return Index, which captures large and mid-cap sized US companies.
OCF: 0.10%
(C Class is available via Hargreaves Lansdown for 0.06%)
ISIN – Inc: GB00B0CNGS66
Acc: GB00B0CNGT73


Vanguard UK Gov Bond Index Inc or Acc
This fund can be used to achieve lower- risk diversity from an equity portfolio. Seeks to provide returns consistent with the performance of a market-weighted bond index of UK government fixed-income securities denominated in Pound Sterling.
OCF 0.15%
ISIN – Inc: IE00B1S75820
Acc: IE00B1S75374

L&G Short Dated Sterling Corp Bnd Index I Inc or Acc
Holds bonds consisting mainly of large, corporate investment-grade bond issues with maturities of between one and five years (the safer end of the maturity spectrum because interest rate changes will have less of an effect on the outcome to the investor).
OCF: 0.14%
ISIN – Inc: GB00BKGR3G14
Acc: GB00BKGR3H21

BlackRock Corporate Bond Tracker D Inc or Acc
It seeks to provide both income and capital growth by aiming to track the performance of the benchmark Markit iBoxx GBP Non-Gilts Overall Total Return Index, of global corporate bonds. It holds more than 1,000 underlying bonds issued from around 10 countries.
OCF: 0.17%
ISIN – Inc: GB00B7J60R40
Acc: GB00B84DSW83

Vanguard Global Bond Index Inc or Acc
This highly diversified fund gives exposure to more than 7,300 bonds with the US, Japan, Canada, France and Germany being the highest weighted countries.
OCF: 0.15%
ISIN – Inc: IE00B2RHVP93
Acc: IE00B50W2R13


Source Physical Gold P-ETC (SGLD)
Gold tends to make a good diversifier in a portfolio as it behaves differently to other asset classes and tends to rally while other assets are falling. This fund is an ‘exchange traded commodity’ rather than a traditional index tracker fund. However, it’s traded on the London Stock Exchange and you can buy it through most investment platforms.

Think of it like buying gold bars without the hassle of having to store your gold somewhere. The fund provides investors with the performance of the gold spot price through certificates collateralised with gold bullion. Each Gold P-ETC is a certificate, which is secured by gold bullion held in JPMorgan Chase Bank’s London vaults.
OCF: 0.29%
ISIN: IE00B579F325