New to investing

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  • heytoki
    heytoki Posts: 156 Forumite
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    pip895 wrote: »
    Charles Stanley are fine and don't charge you to invest(trade) in funds. Do you know how much you will be saving monthly? I know HL will let you invest as little as £25/month.
    The usual advice on here is to pick a multi asset fund like Vanguard life Strategy from (20% to 100%) equity versions available depending on your risk appetite. There is no end date and if you are looking at 15 years VLS60 or VLS80 would be good choices as they will/should give you good growth but with some safety built in.

    At the moment after all life expenses i am able to save around £600. However, it doesnt mean i will put this amount into the ISA. I might start with a lump sum of £1000 and then i will see how it goes. I will have to do some research as i dont want to put the money randomly into funds.

    15 years was an example, I might have it for that period of time, i might have it for less. All depends on how life goes.
  • dunstonh
    dunstonh Posts: 116,358 Forumite
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    You need to be sticking to 2018 disclosures. The rules changed on 3rd January 2018. However, nearly every fund house was not ready for that date and its only in the last few days that these have been coming out.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • heytoki
    heytoki Posts: 156 Forumite
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    AnotherJoe wrote: »
    Hope that helps. As I wrote don’t forget your pension.
    At the moment i have my work pension and i dont think i will contribute more. For my pension i will rely on my property, work pension, state pension ( if any when i retire) and the money i have been able to save thru my work like.

    Apart from the ISA and i will still put more cash aside as i would like to buy another property if one year i have the chance/money.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    dunstonh wrote: »
    It is also worth noting that the VLS charges are now declaring higher costs than before. VLS 60 is 0.33% now. Compared to HSBC GS Bal which is 0.20%.

    I am really not sure that an investment cost of 0.01% is credible - I suspect that HSBC are not including the transaction costs of the underlying funds in their calculations.
  • dunstonh
    dunstonh Posts: 116,358 Forumite
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    Alexland wrote: »
    I am really not sure that an investment cost of 0.01% is credible - I suspect that HSBC are not including the transaction costs of the underlying funds in their calculations.

    its hard to say. A good number of funds are reporting 0.00% or 0.01%. Although some are going much much higher. 0.8% is one of the biggest gaps so far.

    FE are reporting the figure in their MIFID details and it is the fund house that supplies the data to fill that field.

    Its early days and reporting is not consistent yet.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • thomaspastoral
    thomaspastoral Posts: 2 Newbie
    Great stuff about investment here. I really thought that reading these details seems to be very interesting and informative. I also think that figuring out these things can be benefit us in the future.
  • pip895
    pip895 Posts: 1,178 Forumite
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    heytoki wrote: »
    At the moment after all life expenses i am able to save around £600. However, it doesnt mean i will put this amount into the ISA. I might start with a lump sum of £1000 and then i will see how it goes. I will have to do some research as i dont want to put the money randomly into funds.

    15 years was an example, I might have it for that period of time, i might have it for less. All depends on how life goes.

    When you say "see how it goes" - what do you mean? Investing is for the long term - the worst possible thing you can do is pull money out if things aren't going well e.g. after a drop.

    The best option for you would probably be putting a portion of your available funds say £200 monthly into a global multi asset fund(VLS80 is one example). This is not a random fund in that it is a passive investment designed to track the market rather than beat it. It will never be the most profitable of funds but more importantly it wont be the worst either.

    If there is a big drop in markets have access to some additional cash so you can take advantage and buy in at a lower price. Only once you have tens of thousands in there do you need to look at adding additional funds.

    In the UK we are a bit obsessed with property - its an asset class like any other. Personally I would caution against putting too many eggs in that particular basket.
  • heytoki
    heytoki Posts: 156 Forumite
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    When i say i will see how it goes i wanted to say really how i feel with the platform and if i understand the information i see there and how it progress (+ or -).
    Also, the money i will put initially and the money i will put in afterwards (if) i will not pull it if it drops because of the fear to lose it. I know in the long term markets tend to recover.

    When you say £200 a month, let's say i use that fund with an initial lump sum of £600. So the £600 will have a fund value right? How that value is indicated?
    Then if i put £200 a month during 3 years, every month i have put the money in the fund will have value. After 3 years, the platform indicates a total breakdown of each payment/value?
    Sorry that is a stupid question. i am just trying to understand the practicalities of the same.
  • pip895
    pip895 Posts: 1,178 Forumite
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    Not sure I understand. If you invest everything in one fund you will have the total monies invested in the fund and the value of the fund + the difference which is your profit/loss. On HL (and probably most of the other platforms) you can get at information on each of your payments i.e the number of units purchased and the cost of those units, so you could work out the profit/loss on each payment if you really wanted to.

    You can set up virtual accounts on many of the platforms - might be worth taking a look. Hargreaves Lansdowne have a great website and their relatively high (0.45%/annum) charges are unimportant on a small pot but if you think you are going to stick with simple trackers then going for a cheaper option like Vanguards platform would be better.
  • heytoki
    heytoki Posts: 156 Forumite
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    ok- Got it now

    Regarding the platform, i had considered first Charles Stanley to open the ISA Stock and Shares. As per your comments Vanguard is cheaper but i have seen that Vanguard has only its own funds. Could this be a limitation?
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