Time to start investing? £50pm

StevieJ

sabretoothtigger wrote: »

So dont invest in just one market, I'd choose a country with a growing population personally. UK and other western countries have problems with ageing workforces and ever more pensioners, on a fundamental basis I would not expect the best growth in that environment

Dont invest anything you cant afford to 'spend' but when times are gloomiest can be best time to invest especially in this kind of regular balanced way. The stockmarket could fall alot more though, I think its still not nearly as bad as it could be yet

The FTSE contains some of the largest global companies that earn most of their revenues from all over the world, for that reason it is not dependent on the UK market.
Warren Buffett suggests using trackers, sounds like good advice.

StevieJ

fimonkey wrote: »

I'm still non the wiser about 'investments' per se, but I'm wondering about 'taking a punt'.

I'm talking abuot an initial sum of £1K, followed by £50 per month (I can afford to 'lose' this so to speak), and with the FT much lower now I see that this drip feeding will buy me more at the moment (conversely understand the opposite will happen when markets rise).

So my level of risk is low to medium, I am looking to beat 5%p.a. (on growth or dividends which I'd re-invest). I would prefer this to be in a fund as they are more 'diversified' and I would like to hold this fund in an S&S ISA, adn I'm looking for long term growth (5 years minumum)..

Is this possible? What kind of fee's etc would I pay? Or am I better off putting this £50pm into a regular saver (which I currently do) and sticking with the interest?

Thanks in advance

To be honest if you can't make money over a reasonable time frame by investing today, the earth must have tipped on its axis.

The_Fiddler_2

If you save with e.g. H&L on a monthly basis can you change which funds you contribute to each month.

fimonkey

Thanks all, very useful advice. At the moment I can 'afford' to lose £50pm (by giving up alcohol no less) but no more (I didn't drink THAT much ).

What's the difference between a 'fund' and an 'investment trust' or 'tracker fund' please? I was thinking of a 'fund' as that way someone is managing the risk by diversifying the stocks they hold, and I prefer the thought that someone somewhere is on the ball (seeing as I don't have the time or knowledge to be). Is a tracker a similar thing and can I drip feed a tracker?

Re: saving with H&L then converting.. If I have this right would this be saving about 3K then investing it all at once?.. Not keen on that idea, it's teh 'drip feed' that has my interest in this volatile market. (Plus already have a regular saver with Halifax paynig 12%).

I too don't think the market has hit the bottom, but I think by the time it has I'll have just about set up whatever it is I've decided on (tracer/fund etc) and will be ready to go.

Am also thinking about long long term for this. 5 years at least, so one bad day won't worry me, will mean I can buy more at a lesser price!

Finally, what's teh annual fee for a H&L s&S ISA, and if I buy my investments with them, is it wise to hold my S&S ISA with them?

Lots of questions I know, but you guys are fab at explaining things in simple terms. Thanks.

fimonkey

The_Fiddler wrote: »

If you save with e.g. H&L on a monthly basis can you change which funds you contribute to each month.

Hi Fiddler.... I'm confused, can I 'save' £50pm with H&L? How is it then converted to an investment? (I thought minimum investment was £100pm with H&L).

Lokolo

Ok basically you choose a fund.

The minimum per fund is £50. The minimum for a regular donation is £100.

You could either do 1x £100 or 2x £50.

You choose where it gets invested.

A fund will have a price. Say 10p for example. You £50 will buy 500 units, as £50.00 / 10p is 500.
The other fund will have 50p price. Your £50 will then buy 100 units.

So after month 1 you will have:

Fund A - 500 units
Fund B - 100 units

fimonkey

Lokolo wrote: »

If you go here http://www.morningstar.co.uk/uk/fundscreener/default.aspx?lang=en-GB you can use morning stars fund filter to see what sort of funds you might want to invest in.

And with HL (hargreaves lansdowne) their Vantage ISA, the one in the picture above, is a Stocks and Shares ISA.
quote]

Wow Lokola, that tool looks very complicated. For instance, the first few options are 'Morning star category' then there's a million options and I don't understand any!? Not to mention 'Fund Universe' (would I select ISA funds for this?) .. and then Base currency (GBpounds?) , IMA sectors(WHAT?!?) Fund comapny (WHAT?!?) Distribution status (What??!!).

OK, I'm clearly a very new novice at this. Anyone help please?

Many thanks in advance

fimonkey

Lokolo wrote: »

Ok basically you choose a fund.

The minimum per fund is £50. The minimum for a regular donation is £100.

You could either do 1x £100 or 2x £50.

You choose where it gets invested.

A fund will have a price. Say 10p for example. You £50 will buy 500 units, as £50.00 / 10p is 500.
The other fund will have 50p price. Your £50 will then buy 100 units.

So after month 1 you will have:

Fund A - 500 units
Fund B - 100 units

But it still needs £100pm right? ... I can't afford that unfortunately, max I can do is £50pm.

Lokolo

Ha ok it gets a bit complicated.

Ok base currency you want GBP.

http://www.iii.co.uk/isas/fundfilter

^^ go there, that questionnaire thing is a little easier to understand.

Once you have chosen your options, tell us the first few funds that pop up and I will explain things.

---

Ok if you can only really afford £50pm, save up for 6 months. Thats £300. Then set it up, by this time you will have chosen your funds. Then you have the £300 saved which you can then use to put £50 a month of that £300 into the fund. Which with the other £50 a month, will help you get 6 months of contributions.

After 6 months you can then cancel the direct debit and repeat. Save for 6 months, then invest 6 months, save 6 months, invest 6months. Hopefully after a few times you will be able to invest £100 a month.

fimonkey

AH what a good idea, yeah I can do the £100 per month using your clever idea Lokolo. Cheers for that!

Looknig at the weblink now.

Cheers again! Sure I'll have more questions shortly.