Investment ISA & Managed Fund Investment

EdInvestor wrote: »

For someone starting out like the OP, I would suggest that he

a)limits himself initially to his annual stocks and shares ISA allowance, gradually building up his portfolio as he gains experience and confidence

b)opens a self select ISA (ie not one limited to a particular bank or fund manager's products) with a discount broker which will rebate charges. eg. www.h-l.co.uk

c) Spends a reasonable time researching what funds are available and their comparative performance.This site rates both funds and their managers over periods as long as 10 years.

http://www.citywire.co.uk/adviser/fund-and-fund-manager-performance/home.aspx?CitywireSuperClassScheme=Unit-Trusts

Later as experience grows he may wish to save money by investing direct.

d)Spreads his money around a selection of different funds, and then patiently watches them perform for a while.Getting used to the way the markets move up and down is a key factor in avoiding the mistakes of the unsuccessful investor, who typically gets greedy and buys at the top and then panics when the market crashes and sells at the bottom. :rolleyes:


There is no rush: and successful investment is not rocket science.But learning about investing and about how much risk you can tolerate does take time and patience.IMHO it is a process best managed by the educated individual rather than an advisor, because in the end,so much of it is down to the investor's personal attitude.

EdInvestor wrote: »

....having in the process over the years handed over as much as 40% of their returns to one part or another of the financial services industry.

Sorry whiteflag, but haven't you noticed the public feeling out there about the bankers' bonuses? People have suddenly realised just exactly how greedy many finance people are.They have begun to realise how much has been looted (harsh word I know, but in some cases, eg Equitable Life, and other With-profit funds, entirely justified) from pensions and investments over the years.

The penny is beginning to drop.

Ignore it at your peril.