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Buying shares (for the first time)
dllive
Posts: 1,389 Forumite
Hi guys,
I have already got a couple of funds that Im invested in. These have performed ok, but Im never exactly clear on what the managers fees/charging structure is. For this reason - and the fact that I want higher returns - Id like to delve into buying shares, in particular GlakosmithKline.
If I buy through Hargreaves then (I think!) I will be charged 0.5%pa + £9 dealing fee. I have £3k to invest. Is it worth paying these fees now or waiting until I can get my hands on another £2k in about 3 months time and then investing the full £5k?
Thanks
I have already got a couple of funds that Im invested in. These have performed ok, but Im never exactly clear on what the managers fees/charging structure is. For this reason - and the fact that I want higher returns - Id like to delve into buying shares, in particular GlakosmithKline.
If I buy through Hargreaves then (I think!) I will be charged 0.5%pa + £9 dealing fee. I have £3k to invest. Is it worth paying these fees now or waiting until I can get my hands on another £2k in about 3 months time and then investing the full £5k?
Thanks
0
Comments
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Depends on what you think the market will do in 3 months I guess. Personally I prefer the drip feed approach but then you are going to incur extra charges along the way but you spread the risk of buying the lot at the top.0
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Well, the 0.5% SD remains the same whether you invest £5,000 or £3,000 + £2,000 later. The dealing fee is £11.95 IIRR so it is a balance of whether you incur one commission fee or two fees.
The question to ask yourself is do you believe that £3,000 invested in GSK today will go up by £11.95 or more in the period you would be waiting?Old dog but always delighted to learn new tricks!0 -
Why do you think it will be a £9 dealing charge? For most, it will be £11.95.
You will be charged 0.5% stamp duty as with anywhere.
But you will also be charged a 0.5% annual management charge if you hold shares in ISA.0 -
Why not tell the fund manager he'll get better returns if he buys GSK?"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
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There's a wealth of data saying your'll nearly certainly do a really crap job of picking shares.0
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There's a wealth of data saying your'll nearly certainly do a really crap job of picking shares.
First shares I bought turned £50 into £500 in 20 years. Not a bad return I think, at one point they were worth next to nothing so gave up on them completely. Only when I started getting the company brochures did I look back at them and was surprised how well they performed.
But yes a monkey with a pin may do better.0 -
Anyway just to give dllive some actual data read this http://www.mebanefaber.com/2013/03/21/you-are-not-a-good-investor/
Now as an alternative to expensive managers look at index funds or you can find active managers charging 0.75% or less per year.0 -
Hi guys,
I have already got a couple of funds that Im invested in. These have performed ok, but Im never exactly clear on what the managers fees/charging structure is. For this reason - and the fact that I want higher returns - Id like to delve into buying shares, in particular GlakosmithKline.
If I buy through Hargreaves then (I think!) I will be charged 0.5%pa + £9 dealing fee. I have £3k to invest. Is it worth paying these fees now or waiting until I can get my hands on another £2k in about 3 months time and then investing the full £5k?
Thanks
If you're not planning on moving the shares around much, then see if your bank does internet share trading.
I have that facility with HSBC and they charge around 11.95 for a trade with no annual fees.0 -
MoneySaverLog wrote: ».....a monkey with a pin may do better.
absolutely wrong - a monkey with a pin WILL do better!
as an experiment 100 fund managers/financial advisors/experts where asked to construct the worst performing portfolio of shares they could possibly imagine - 83 beat the market!
you can do sa well as anyone in stock picking - just decide what you want and be realistic - 10% growth/annum may be a target.
you need some method tho' of picking stocks, if it works stick to it, if it doesn't refine it tillit does
for example - check out p/e (price to earnings ratio) this tells you how much it costs to buy a certain amount of earnings, a p/e of 10 means it costs £10 to buy £1 of earnings, a p/e of 15 means it costs £15 to buy £1 of earnings i.e.more expensive
so look at a particular sector, eg supermarket - morrisons, waitrose, tesco, sainsbury, compare their p/e's - and buy into one that seems good value- be carful tho; low p/e may mean trouble, as well as a high p/e
this is all very simplistic tho' and many other factors may need to be considered - KISS
good luck
fj0
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