Getting started in Investing

Jake'sGran

Rollinghome wrote: »

ITs are shares so are traded when stock markets are open. There aren't initial charges but as with other shares you'll pay broker's fees and there'll be a spread. ITs can be an attractive option but make sure you fully understand the substantial differences to UTs and OEICs and particularly the risk when buying at a substantial "premium" rather than at a "discount".

I thought the majority of funds were OEICS these days and I rarely hear people referring to Unit Trusts. I did know about the spread when I was on the Fidelity site checking charges and only went there as I was getting irritated when searching the HL site. In any case I am considering buying the First State China Greater China Growth fund instead.
I am embarrassed to say I have never had a strategy and started investing when I saw certain advertisements in The Sunday Times. All
I wanted was to try to make sure that in retirement I could afford to run a car, have sufficient heating and food and still have foreign holidays.
Unfortunately, despite being quite successful in my investing I cannot use it due to a serious health problem. Now, I invest as a hobby and MSE has made it interesting!

adindas

Dear All

I am a newbie in this area. Is there any website where I could use for paractising and pretending buying and selling share before I do the real thing ?.

ADINDAS

Rollinghome

Jake'sGran wrote: »

I thought the majority of funds were OEICS these days and I rarely hear people referring to Unit Trusts.

I'm not sure what proportion are OEICs now, quite high, but some companies like Artemis etc. seem to still have kept most of their funds as unit trusts. Both are very similar in that the price paid for UTs and OEICs is determined directly by the assets in the fund.

As you'll know that's very different to ITs where the price will be whatever buyers will pay and may be more or less than the underlying asset value. Most ITs trade at discount, i.e. less than the assets are worth. So when an IT trades at a very high premium without any good reason there's an added risk. The premium will only keep going up as long as buyers think it will go up and at 12% over NAV the odds of doing that start to get very short. If the asset value falls and the premium falls with it there's a double whammy. So something to consider.

Sorry to hear your health isn't too good but your enthusiasm is an inspiration to us all. Good luck with your investments.

Lokolo

adindas wrote: »

Dear All

I am a newbie in this area. Is there any website where I could use for paractising and pretending buying and selling share before I do the real thing ?.

ADINDAS

http://www.bullbearings.co.uk/

Something like that.

adindas

Thank you it is really helpful

ADINDAS

Lokolo wrote: »

http://www.bullbearings.co.uk/

Something like that.

spike87

I used to use:

http://www.virtualtrader.co.uk/default.asp

Before actually starting with real money.

adindas

Thank you for your information

ADINDAS

spike87 wrote: »

I used to use:

http://www.virtualtrader.co.uk/default.asp

Before actually starting with real money.

Jake'sGran

Rollinghome wrote: »

As you'll know that's very different to ITs where the price will be whatever buyers will pay and may be more or less than the underlying asset value. Most ITs trade at discount, i.e. less than the assets are worth. So when an IT trades at a very high premium without any good reason there's an added risk. The premium will only keep going up as long as buyers think it will go up and at 12% over NAV the odds of doing that start to get very short. If the asset value falls and the premium falls with it there's a double whammy. So something to consider.

Sorry to hear your health isn't too good but your enthusiasm is an inspiration to us all. Good luck with your investments.

Thank you very much for your post. Do you think the Fidelity China IT premium is due to it being run by Anthony Bolton who never seems to do anything wrong? I bought £2000 worth and the gain is showing at about £500.
Would I realise this gain if I sold today? (You can see I didn't really know enough about ITs.

blinko

Jake'sGran wrote: »

Thank you very much for your post. Do you think the Fidelity China IT premium is due to it being run by Anthony Bolton who never seems to do anything wrong? I bought £2000 worth and the gain is showing at about £500.
Would I realise this gain if I sold today? (You can see I didn't really know enough about ITs.

yes you would receive 2500

jimjames

Jake'sGran wrote: »

Thank you very much for your post. Do you think the Fidelity China IT premium is due to it being run by Anthony Bolton who never seems to do anything wrong? I bought £2000 worth and the gain is showing at about £500.
Would I realise this gain if I sold today? (You can see I didn't really know enough about ITs.

I think the premium is ONLY due to Anthony Bolton. If he were to leave or there was a financial shock relating to China then the value would drop. I had invested in this fund but have now stopped as I don't believe the premium is sustainable or worth paying the extra for.

Andy