My situation: I'm a UK expat, 33 years old, married, have been in HK for 7 years, plan to return to UK within the next 5 years. I have saved up some cash of which HKD 250K+ I want to invest with a buy-and-hold strategy. I have a "4 out of 5" risk appetite and intend to invest 80% equity / 20% bonds. I want it to be low-fee but need to consider that I have limited investment knowledge (certainly compared to you folks!) and don't want to screw up my savings by investing in the wrong thing because I overestimated my abilities. My questions are as follows:
- The hands-off/easy approach would be to invest with HSBC Expat, with whom I already have an account, and stick my money in their HSBC world selection, matching exactly my risk appetite mentioned above. However, the high fees put me off and I owe it to myself to try a more hands-on investment approach. However, before I rule it out - has anyone had experience investing in this way (either through HSBC expat or similar) and has it been worthwhile? Does anyone else have a recommendation for other managed investment funds?
- The hands-on approach would be to invest in ETFs. This is what I want to do but I feel my knowledge is lacking in both which ETFs to invest in and which broker/platform to use. My plan would be to invest in 3-5 ETFs and only touch again after a year in order to rebalance. I have the following questions:
- Which broker: IB is geared toward active investing particularly given the inactivity fee. Does anyone have experience of using IB for passive / buy-and-hold? If not, which online broker would you recommend for buy-and-hold? Has anyone had success of investing in ETFs using an HSBC investment account? I know both of these points have been been mentioned in other threads but I didn't see any definitive opinions.
- Which ETFs: There are a lot of online resources geared toward UK and US residents listing the "top n" ETFs for buy-and-hold, but I can't find anything for HK. Are there any "ETFs of choice" in this community?
- What happens when I return to UK: Can I keep my investments ticking over even after I move back to the UK? My understanding is that if I want to avoid UK capital gains tax I would need to sell all my stocks before leaving HK. Considering these assumptions, is it even worthwhile for me to be investing now?
Many thanks in advance and grateful for any help!