advice on investing in emerging markets please

earthlover

I am a newcomer to investing and am thinking of investing 10-15k in these First State funds: Greater China, Asia Pacific Sustainability, Asia Pacific Leaders.

I also like the look of Jupiter Financial Opps.

My hubby and I feel we have to try to boost our savings earning potential. Husband has company pension for last ten years, circa 180k in now. Have 2 fixed interest savings accounts.

Pensions not expected to do great things over next 10 - 15 years.

We r both 54. He pays 40% tax. I am non-taxpayer.

Should we do this?
Would ISA wrapper be good?
Cheapest way to pay for the funds?
Invest in all or just a couple?

Thanks for advice!

Lokolo

1) Should you do this? Upto you! If you want to do it for longterm then the chances are returns will be good, as long as you pull out at the right time (for example, if you had invested 10 years ago and pulled out a year ago you would have been highly disappointed).

2) Yes. Higher rate dividend, would not be applicable for your husband. CGT, even if you don't reach it, its still there just in case.

3) Hargreaves Lansdowne usually the cheapest.

4) Spread the risk. Going on one or 2 may give greater returns, but may give more loss. Spreading around means you should get to a better average of the market.

jem16

Lokolo wrote: »

2) Yes. Higher rate dividend (if you have INC rather than ACC),

Makes no difference if it's INC or ACC - you still pay the higher rate dividend.

Lokolo

jem16 wrote: »

Makes no difference if it's INC or ACC - you still pay the higher rate dividend.

Thanks, edited

Linton

I would suggest you diversify - having all your investment funds in one geographical region seems rather risky. Assuming you do want to go for the chance of high gains (and possible high losses) what about global emerging economies, emerging Europe and Latin America? Outside the geographical funds you could look at raw materials, technology and many other niche areas.

Putting the investments in an ISA will remove the risk of Capital Gains Tax when you come to sell, but if you split the ownership between yourself and your husband I cant see it being a major risk anyway.

Chgeapest way to invest - look at the funds supermarkets. I use Fidelity (https://www.fidelity.co.uk) but there are several others.

On the choice of fiund manager - First State far east trusts have been good to me!

Whether you should do it - up to you, but if I had sufficient coverage in cash and safe investments for any problems in the short to medium term I would. But be prepared for a rocky ride.

mr_fishbulb

earthlover - Asia Pacific Sustainability & Asia Pacific Leaders seem to invest in the same(ish) companies:

Asia Pacific Leaders top 10 holdings:
Newcrest Mining 8.53%
Brambles Ltd 6.68%
Hong Kong & China Gas Co. 5.14%
Swire Pacific Ltd. A 5.13%
Taiwan Semiconductor Manufacturing 4.91%
Cheung Kong (Holdings) 4.20%
Oversea-Chinese Banking 4.01%
Woodside Petroleum 3.13%
CSL 3.10%
Lihir Gold 2.84%

Asia Pacific Sustainability top 10 holdings:
Brambles Ltd 5.71%
Hong Kong & China Gas Co. 5.05%
Taiwan Semiconductor Manufacturing 4.72%
Kasikornbank PCL Fgn 3.91%
MTR Corp. 3.78%
Manila Water Co. 3.71%
Oversea-Chinese Banking 3.37%
Woodside Petroleum 3.36%
Newcrest Mining 3.14%
CSL 2.97%

Wouldn't be much point buying them both

Aegis

earthlover wrote: »

I am a newcomer to investing and am thinking of investing 10-15k in these First State funds: Greater China, Asia Pacific Sustainability, Asia Pacific Leaders.

I also like the look of Jupiter Financial Opps.

My hubby and I feel we have to try to boost our savings earning potential. Husband has company pension for last ten years, circa 180k in now. Have 2 fixed interest savings accounts.

Pensions not expected to do great things over next 10 - 15 years.

We r both 54. He pays 40% tax. I am non-taxpayer.

Should we do this?
Would ISA wrapper be good?
Cheapest way to pay for the funds?
Invest in all or just a couple?

Thanks for advice!

Do you have any other investments outside pensions? I ask because you're limiting your geographical focus to Asia, which is a very high risk strategy. Even if you're looking exclusively for emerging markets, a combination of global growth and BRIC-focused funds might result in a better portfolio, though I would generally encourage you to look at investing in some lower risk areas too, including corporate bonds and developed economies.

If in doubt, speak to an IFA and see if they can help you out with a well-diversified investment. It might also be worth getting your husband in front of one to discuss his pension, as it sounds like a money purchase scheme rather than a final salary, and therefore it can also be invested for better growth, at least in part.

Asheron

I would invest 10k into Gold and 5k into Silver, Physical only.

earthlover

Thanks to everyone for advice! I clearly have to do more research and make sure I get a better mix of funds.

One thing I didn't understand: Lokolo's answer 2) about higher rate dividend and cgt. How does that work?

Lokolo

earthlover wrote: »

Thanks to everyone for advice! I clearly have to do more research and make sure I get a better mix of funds.

One thing I didn't understand: Lokolo's answer 2) about higher rate dividend and cgt. How does that work?

Having the funds inside an ISA. The benefits of a S&S ISA are that dividends are not higher rate for those that are higher rate taxpayers, and you do not have to pay Capital Gains Tax.

earthlover

With gold so high at the moment is now a good time to invest in it?