investment novice - tracker guidance please

indebtbigtime

Hi

I have almost 2k which I would like to invest - linked to stock market performance.

I do not want a guarenteed stock market bond as these are i understand are 5 yrs minimum. I would like to invest ideally on an open ended basis, but expect to hold for around 2 yrs

I am willing to risk the capital

i understand that whilst ftse has fallen it may fall further

i would like to be able to access the funds at speed should this prove necessary

any help appreciated

Lansdowne

indebtbigtime wrote: »

I am willing to risk the capital

Hopefully then your username is not accurate.

dunstonh

I am willing to risk the capital

On a 2 year term then you certainly would have to be a high risk investor. The term is not long enough to really consider investing. A few GEBs with a 1 year term do exist where you are a taking a punt on where you think the FTSE100 will be in 12 months time and if you get it wrong you have some protection but they are about it for short term unless you really want to go in gung-ho. They are not good for accessibility either but then that is why you have savings accounts, which is probably what you should stick to looking at.

jack_spratt_2

Dunstonh advice is spot on as you would expect !!

Its only after you have a solid savings base should consider an account like this !! the idea is your choice to access your investment should depend on your investment decisions not the need to be access some cash

indebtbigtime

thanks for all the advice - what are my options

unit trusts?

ftse trackers?

others?

if I say decide to go for a unit trust how do I find a decent provider I can access via the internet? what kind of charges or management fees would be reasonable

Blah99

You can get an ETF, which would let you track whatever it is you want (FTSE100, AllShare etc) and also access the money immediately (at a potential loss).

indebtbigtime

awesome - sounds like the one

where do I get ETF? and what does it stand for?

Blah99

ETF is an Exchange Traded Fund. It's a tracker for a bundle of something (index, sector, whatever) that's traded directly on the FTSE. Here's an example, the L100 FTSE100 tracker:

http://www.iii.co.uk/investment/detail%3Fcode%3Dcotn:L100.L&it%3Dle

You buy/sell it like a normal share, it has a tracking error and a history etc. Do some research into ETFs before you buy as there are important facts to be aware of.

jack_spratt_2

The ETF are more suited to lump sum investments rather than regular payments

indebtbigtime

thats great I dont see any additional regular payments - just a one off purchase and the ability to cash in when the price is right makes this ideal

off to research now

indebtbigtime

iShares FTSE 100
[URL="javascript:void( null );"]Performance Graph[/URL]
Irish
ISF
GBP
0.400
2,554,841 GBP
4.25 GBP

Think thats the one - its with ishare.co.uk

its not clear how I purchase or what the minimums are - anyone know if this company is reputable?

thanks