The Verdict
Average Success Rate
HSBC Investments 5-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
The first thing I'd say about HSBC Investments is that, with multiple different names for different parts of the service, getting a handle on what is offered, and where to find it, isn't easy. There's InvestDirect if you want to buy and sell shares online, the Global Investment Centre if you want to buy and sell funds online, and the Flexible Retirement Account if you want to invest in a SIPP. And they're all completely separate entities.
That creates a headache if you want to pick 'n' mix your assets. You must open separate accounts - one with the Global Investment Centre, and one through InvestDirect - and you cannot open an ISA with both within the same tax year. That essentially means, you can only invest in either shares, or funds, within your ISA, not both - unless you want to open two HSBC ISAs in different tax years, one for your funds and one for your shares. Even then, you'd only be able to have one operational each year, meaning you'd have to decide each year whether you want to invest in funds, or shares. Similarly, if you want a general investment account, you'll need to set up two general investment accounts. HSBC's self-invested personal pension only offers access to funds.
Siloing funds and shares in this way is very unusual and prevents those who want easy flexibility when building their portfolio from getting it.
On fees, HSBC could be a low-cost option, with just one low 0.25% annual fee for holding funds, and no fund dealing fees. To hold shares, it's a flat £10.50 per quarter. A potential real bargain. However, those savings could be wiped out by HSBC's share dealing fees. UK shares at £10.50 per trade is a lot. €29.95/$29.95 to trade EU/US stocks is barmy. £39.95 to trade gilts is totally inexplicable.
One big - and very unusual - plus point about HSBC, however, is that they don't charge FX fees. That is unheard of and if you're making large trades of US stocks, you could potentially save yourself a small fortune here.
If you're looking for a
A ready-made portfolio is a pre-made collection of investments that have been put together by investment experts. They are designed to be a simple option for those who don’t want to choose individual stocks or funds for themselves.ready-made portfolio
, HSBC has returned some excellent growth figures on its ready-made portfolios over the past decade, mean it could be an attractive proposition, although past returns are not a predictor of future performance, so beware making any decisions based purely on these figures.
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Pros
- No FX fees to pay on non-GBP investments
- Some excellent historical portfolio returns
- Low annual fee for investing in funds
- Low quarterly flat fees for investing in shares
- Banking and investing all under one roof
- Excellent dedicated customer service for investors
Cons
- Funds and share dealing are managed separately so you cannot combine them within one ISA or GIA
- Exceptionally high dealing fees on EU shares, US shares and gilts
- Can only invest in small number of funds within SIPP
Ready-made Portfolio
Average Success Rate
HSBC Investments 5-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
HSBC's collection of ready-made portfolios (known as funds) have an overall average performance that is considerably better than the industry average.
Among the risk-rated range of portfolios offered by HSBC, the 'Adventurous' fund has performed exceptionally well, with five-year returns of 58.5%. The 'Global Strategy Dynamic' portfolio has also been a stellar performer, with 10-year returns of 139.4% - outstanding when compared to the industry average of 96.1% over ten years.
The 'Cautious' portfolio has done less well, however, with returns totalling just 5% over the past five years.
Always remember that past performance is not a guarantee of future performance and all investing involves risk, including the risk of losing your entire investment. Your choice of portfolio should be carefully considered to ensure it matches your long-term investment goals, attitude to risk, and tolerance to risk. If you are unsure about the right investment option for your circumstances, speak to a qualified, independent financial adviser.
Account Opening
You can only apply for an HSBC Investment portfolio if you’ve got an HSBC current account, so if you're not an existing customer, you'll need to go through the full application process to open a bank account, which can be more time-consuming than onboarding with an investment-only provider.
Once your current account is up and running, you can apply to use InvestDirect (shares) and the Global Investment Centre (funds). The online application for both can be done online, and HSBC promises to review them and open your account with 3 days. It's, therefore, not an instantaneous process.
Pros
- Application for InvestDirect and Global Investment Centre can be done online
Cons
- Can only apply for an HSBC investment portfolio if you have a bank account
- Full bank account opening process can take time
- No guarantee of immediate access once application has been made for investment account
Safety
HSBC is considered one of the world's safest banks. It is one of the UK's largest banks and is listed on the London Stock Exchange. It is authorised and regulated by the UK Financial Conduct Authority and cash held within an HSBC account is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person, per institution. Joint accounts have protection up to £170,000.
More information on HSBC and whether this platform might be a good addition to your portfolio can be found here:
HSBC: Company performance analysis 
Pros
- HSBC is considered one of the safest banks in the world
- Listed on the London Stock Exchange and part of the FTSE 100
- Authorised and regulated by the FCA
- FSCS protection guaranteed
Education
HSBC's educational materials aren't as good as some other high street banks'. For a global banking powerhouse with so many knowledgeable people within its ranks, I was disappointed by how little insight and knowledge is produced as free content for investors. Barclays does much better at this.
Pros
- Webpages explaining basics of investing
- Definitions and products explained
Cons
- Other than the basics, very little educational content
- Barely any use of explainer videos, animations or downloadable guides
Customer Service
As I always do, I rigorously tested HSBC's customer services myself. I tested the automated chat app on HSBC's website and too different phone lines - one relating to stocks and shares ISAs, and one relating to HSBC's Flexible Retirement Service. I could not fault anything. On both phone calls, the phoneline was answered immediately - I never encountered a queue - and I was helped by friendly, knowledgeable subject specialists. The website's automated chatbot also succeeded in providing me with the specific answer I was looking for to a pretty complicated question, so it performed well.
However like many of the big banks, HSBC does very poorly when it comes to published customer services ratings. This could be explained by the fact that HSBC's Trustpilot review encompasses banking, mortgage and investing customer experiences in one rating. Investing customers are given dedicated customer support teams, though, so I would caution against seeing a dreadful Trustpilot (or similar) rating and thinking HSBC will be a nightmare to contact - that was not my experience at all.
Pros
- Phonelines that were immediately answered by investment/retirement specialists
- Helpful in-app automated chatbot
- Apple Business Chat (need an iPhone or iPad)
- Dedicated phoneline for InvestDirect customers open Mon-Fri, 7.30am-9.30pm
- Dedicated phoneline for Flexible Retirement Service (SIPP) open Mon-Fri, 9am-5pm
Cons
- Poor customer service rating on Trustpilot (but encompasses banking and mortgage customer experiences)
Corporate Actions
HSBC notifies all customers when a corporate action is announced and provides instructions on how to communicate your instruction, and the deadline to communicate it by. Instructions for corporate actions can be given online, by letter or by telephone.
Pros
- HSBC comprehensively supports corporate actions
Cons
- No fractional shares if the company pays out new shares - allocation could be rounded down to nearest whole number
More info 
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HSBC Investments 5-Year Avg 
Industry avg. 
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Verdict 
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HSBC Investments 5-Year Avg 
Industry avg. 
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