Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • acerazor1
    • By acerazor1 11th Jul 17, 2:43 PM
    • 37Posts
    • 9Thanks
    acerazor1
    New to investing
    • #1
    • 11th Jul 17, 2:43 PM
    New to investing 11th Jul 17 at 2:43 PM
    I currently have aeound £400 a month spare cash and would like to stadt making my money work harder! I've transferred my bank account to M&S to take advantage of their 5% regular saver, and would like to try investing the remaining £100-£150 per month into an investment ISA. I was looking at investing into a fund with H&L but there are so many different funds, its all very overwhelming to a begginer. How do you guys go about picking a fund? Are there any relatively safe first-timer funds? What sort of % return should i expect? I am happy to leave my money long term (5-10 years). I understand the basics of shares but picking them is a complete mystery, I may aswell be clicking with my eyes closed!

    Btw I have a mortgage fixed at 2.57% so unless I can expect better returns I guess I should overpay each month.
    Last edited by acerazor1; 11-07-2017 at 2:51 PM.
Page 1
    • Bravepants
    • By Bravepants 11th Jul 17, 3:37 PM
    • 272 Posts
    • 319 Thanks
    Bravepants
    • #2
    • 11th Jul 17, 3:37 PM
    • #2
    • 11th Jul 17, 3:37 PM
    If you are brand new at investing, and depending on your age you might want to look at global index tracker funds.


    Or funds of funds like Vanguard LifeStrategy, which are multiple funds investing in various equity indexes and bond funds. Other funds of funds are available! In general passive investing via index funds have lower charges than active funds (actively managed by a fund manager). You should be looking to pay less than 1% per annum for total charges, you can these days pay less than 0.5%.


    Buy, or borrow, a copy of Tim Hale's "Smarter Investing" and read the first chapter to give you a general overview, it's a very good read.


    Then take a look at the Monevator website.


    Depending on your income level, if you are over the 40% tax bracket it may be worth you paying AVC or into a SIPP to skim off the 40% part of your income, particularly if you plan to retire early, say from age 55.


    Good luck!
    • bostonerimus
    • By bostonerimus 11th Jul 17, 3:41 PM
    • 1,123 Posts
    • 631 Thanks
    bostonerimus
    • #3
    • 11th Jul 17, 3:41 PM
    • #3
    • 11th Jul 17, 3:41 PM
    I was looking at investing into a fund with H&L but there are so many different funds, its all very overwhelming to a begginer.
    Investing is made unnecessarily complicated. I say the same thing over and over again so here goes again. Go over to vanguard.co.uk, look at their website and c=decide which LifeStartegy fund matches your tolerance for risk, then open an ISA account with Vanguard and start investing.
    Misanthrope in search of similar for mutual loathing
    • acerazor1
    • By acerazor1 11th Jul 17, 4:28 PM
    • 37 Posts
    • 9 Thanks
    acerazor1
    • #4
    • 11th Jul 17, 4:28 PM
    • #4
    • 11th Jul 17, 4:28 PM
    Thanks for the replys guys will thank!!

    Ive heard abit about vanguard, what exactly is it?
    • xylophone
    • By xylophone 11th Jul 17, 4:38 PM
    • 23,451 Posts
    • 13,634 Thanks
    xylophone
    • #5
    • 11th Jul 17, 4:38 PM
    • #5
    • 11th Jul 17, 4:38 PM
    https://en.wikipedia.org/wiki/The_Vanguard_Group


    http://www.telegraph.co.uk/investing/funds/probably-lifestyle-fund-good/
    • Eco Miser
    • By Eco Miser 11th Jul 17, 4:48 PM
    • 3,178 Posts
    • 2,942 Thanks
    Eco Miser
    • #6
    • 11th Jul 17, 4:48 PM
    • #6
    • 11th Jul 17, 4:48 PM
    Investing is made unnecessarily complicated. I say the same thing over and over again so here goes again. Go over to vanguard.co.uk, look at their website and c=decide which LifeStartegy fund matches your tolerance for risk, then open an ISA account with Vanguard and start investing.
    Originally posted by bostonerimus
    That's one option. Even if you go entirely with Vanguard products, other platforms may be cheaper, depending on how much and how often you invest.
    Eco Miser
    Saving money for well over half a century
    • Eco Miser
    • By Eco Miser 11th Jul 17, 4:56 PM
    • 3,178 Posts
    • 2,942 Thanks
    Eco Miser
    • #7
    • 11th Jul 17, 4:56 PM
    • #7
    • 11th Jul 17, 4:56 PM
    I was looking at investing into a fund with H&L
    Originally posted by acerazor1
    Why H&L? They are frequently the most expensive platform.
    See http://monevator.com/compare-uk-cheapest-online-brokers/ for a list of others. Take note of the exit fees as well as the annual and transaction charges.

    Have you got 6 months expenditure in cash (earning 3-5% - you can have more than one current account) for emergencies? If not it's probably too soon to start investing, as you don't want to be a forced seller in a downturn.
    Last edited by Eco Miser; 11-07-2017 at 5:00 PM.
    Eco Miser
    Saving money for well over half a century
    • TheShape
    • By TheShape 11th Jul 17, 5:46 PM
    • 1,113 Posts
    • 869 Thanks
    TheShape
    • #8
    • 11th Jul 17, 5:46 PM
    • #8
    • 11th Jul 17, 5:46 PM
    Have you got 6 months expenditure in cash (earning 3-5% - you can have more than one current account) for emergencies? If not it's probably too soon to start investing, as you don't want to be a forced seller in a downturn.
    Originally posted by Eco Miser
    Take note of this. You do not want to have to sell investments if you need money in an emergency. Doubly important as your M&S Monthly Saver does not permit early withdrawals unless you forfeit the 5% interest (you would receive only a very low rate).

    Have a look at other current accounts that pay 3-5%.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,399Posts Today

7,009Users online

Martin's Twitter