Shall I invest in funds now or wait for a bit longer

Linton

jonj123 wrote: »

I searched for gilts in morningstar and on average the 3 yr annual sd is around 8-9%. I understand gilds are the safest investments out there as you are effectively lending the the government right? So if gilts can offer this sort of return would expecting a 4-5% growth be a bit pessimistic? I might be getting this totally wrong but this is from what I understand. This is what I based my findings on:

http://www.morningstar.co.uk/uk/fundscreener/results.aspx?lang=en-GB&Universe=FOGBRP$ALL&InitialSalesCharge=1.0&IMASector=LC00000001

Gilts like everything else are subject to supply and demand. Recently they have been very popular as they are seen as a safe repository for money in troubled times and so they have increased in value.

They can only increase in value to the point where their interest return which is based as a % of the initial cost decreases to something close to what could be earned elsewhere.

On that basis they havent got much further to rise seeing as their actual returns are now around what you can get for cash.

If you are buying long term gilts or gilt funds you also have the risk that international interest rates will rise which will lead to a reduction in gilt value.

jem16

sabretoothtigger wrote: »

I just looked at my funds since April and Im only down 10% and I hold some pretty risky stuff overall. I dont consider that alot really, there is alot of potential for upside and with savings that doesnt exist

My reservations would be that the OP, in the space of 3 weeks, has gone from taking out a Natwest S&S ISA then cancelling and losing £430, to considering penny shares, the dogs of the Dow and now 6 high risk funds that don't follow any other strategy but sink or swim.

I can just see him jump from one frying pan to the next and at the end of it come on here and complain that he's lost 30% of his money and can't now buy a flat.

OP really needs to do more research and read a book.

Agreed.

sleepless_saver

Before jumping in and investing any more money, it would be a good idea to sit back for a moment and learn a bit about investment strategies and their risks. I'd recommend "Smarter Investing" by Tim Hale.

ricky.patel89

Sorry to hijack this thread but could someone be able to explain the difference between an Investment trust and an Investment Fund?

Thanks.

Edit: My Dad has been paying into a Scottish Widow with profit policy for the last 20 years, would this be considered as a good investment, it seems to be quite diverse in its investment, as they invest in equities, property, gilts, corporate bonds and hold cash.

opinions4u

jonj123 wrote: »

I'm not a taxpayer. My online business is on a very small scale and it's not a regular source of income.

Maybe I misunderstood, but I thought you said you accumulated £55k from your enterprise.

Did you declare it?

If not, I'd suggest employing an accountant to ensure you have discharged the appropriate taxes before you invest.

blinko

your too heavy on asia !!! and i really dont recommend china,

i would throw in JPM africa and First State Indian Subcontinent India fund althought the fidelity india fund is good but less diversified in my opinion, infact throw in Investec Africa & Middle East as this gives you access ot the middle east too

but ure 2 heavy on Asia !!!! and be prepared to lose money eg 5% in a week is normal

i acutally fancy zimbabewae for investing but personally wouldnt put my money in there but still i think it will sort itself out one day ! same can be said for alot of countries

but buddy you need to rebalance that folio its way to asia

mine is unbalanced and too risky i know but im taking a risk on it, ideally you wnat some bonds and say jp morgan natural resources to get exposure to commodies and all that

but anyway definately have a look at your folio its way to heavy on asia

le_loup

jem16 wrote: »

My reservations would be that the OP, in the space of 3 weeks, has gone from taking out a Natwest S&S ISA then cancelling and losing £430, to considering penny shares, the dogs of the Dow and now 6 high risk funds that don't follow any other strategy but sink or swim.

He wouldn't just be pulling our leg, would he?

le_loup

opinions4u wrote: »

Maybe I misunderstood, but I thought you said you accumulated £55k from your enterprise.

Like I said above!

jonj123

opinions4u wrote: »

Maybe I misunderstood, but I thought you said you accumulated £55k from your enterprise.

Did you declare it?

If not, I'd suggest employing an accountant to ensure you have discharged the appropriate taxes before you invest.

I've been trading since I was about 15 so this amount of money has been accumulated over 6 years but am now getting to the last few years of my university course and really have not got the time to carry on trading.

I understand I have chosen too many funds in Asia and will reconsider my choices. Yes I did initially think of investing in shares but after the feedback I received I think its safer to stick to funds to start with.

blinko

jonj123 wrote: »

I've been trading since I was about 15 so this amount of money has been accumulated over 6 years but am now getting to the last few years of my university course and really have not got the time to carry on trading.

I understand I have chosen too many funds in Asia and will reconsider my choices. Yes I did initially think of investing in shares but after the feedback I received I think its safer to stick to funds to start with.

trading as in the stock markert ?

yeah buddy far to asia, it sounds like you like higher risk funds and some excitement

in which case checke out my previous post but yeah obviously to heavy on asia there, bonds equities, bare in mind shares are more volitle than unit trusts so expect 5% movements daily especiually at the moment where good news and bad news have a heavy influence,

basically anything god from the US and everything lifts anything bad it all gets dragged down