£1000 - I would like to learn to invest, can anyone advise how to start?

EnzoMan

I'm just new ot this i've been listening to podcast and reading websites but all that isn't starting putting the money where my mouth is, I'm writing here to see if anyone could offer some advice on how to start to invest this money, other than putting it in a bank account.

£1000 is that enough to start a 'portfolio' or am I dreaming?

Can anyone help with links or further information.

I've got share dealing being offer to me by TSB but I'd like to know how or where you would start for a slow safe start...

kidmugsy

I'll be interested to see what other people say. We started with an S&S ISA (strictly, a forerunner of ISAs called a PEP) with Alliance Trust Savings. Daringly, our first investment was in Alliance Trust itself. Then we tried Gilts, including Index-Linked Gilts. We sold practically all our equities in 1999. Tra-la-tra-lee.

bendix

I dont understand the question. You have £1000 to invest, so just choose what you want to invest it in and . . ummm . .invest it.

Buy shares in a company you like. Buy units in a unit trust. Buy bonds. Buy some silver. Buy rare books. Buy a share of a racehorse . . . .

I dunno . what are y ou expecting us to tell you?

rockitup

EnzoMan wrote: »

I'm just new ot this i've been listening to podcast and reading websites but all that isn't starting putting the money where my mouth is, I'm writing here to see if anyone could offer some advice on how to start to invest this money, other than putting it in a bank account.

£1000 is that enough to start a 'portfolio' or am I dreaming?

Can anyone help with links or further information.

I've got share dealing being offer to me by TSB but I'd like to know how or where you would start for a slow safe start...

With that size investment (I started with the same years ago) I reckon you will be better starting off with Unit Trust/OEICS or an Investment Trust rather than relying on the prospects of just one company.

If you can start a Regular Savings Plan (monthly) then you can average out your unit prices over time, also pick up some investing books or look online and check out Motley Fool UK and other helpful sites. With unit trusts/Oeics/Investment Trusts regular savings start at around £50 a month.

This will all help you learn and hopefully help you start to select your own companies and funds later.

Best of luck

rockitup

I forgot to add that Hargreaves Lansdown have a £3,000 minimum for Unit Trusts but you can start the Regular Savings with them for £50 per month or more and thus avoid the £3,000 minimum

Investment Trust companies offer lower initial investments if you prefer to stick with a lump sum

EnzoMan

rockitup wrote: »

I forgot to add that Hargreaves Lansdown have a £3,000 minimum for Unit Trusts but you can start the Regular Savings with them for £50 per month or more and thus avoid the £3,000 minimum

Investment Trust companies offer lower initial investments if you prefer to stick with a lump sum

I would prefer to just use this extra £1000 to do something with, also knowing that I could loose it.

rockitup

EnzoMan wrote: »

I would prefer to just use this extra £1000 to do something with, also knowing that I could loose it.

My first investments were in 2 Investment Trusts offered by the same company, one invested in UK and the other was more a Generalist trust invested across different regions.

http://www.trustnet.com/InvestmentTrusts.aspx

The above link will get you started, don't rush in but do some reading first. With generalist Investment Trusts you are less likely to lose a large proportion of your initial investment because of how your money is spread around, but gains may be not as high as a specialist trust investing in one sector.

EnzoMan

rockitup wrote: »

My first investments were in 2 Investment Trusts offered by the same company, one invested in UK and the other was more a Generalist trust invested across different regions.

http://www.trustnet.com/InvestmentTrusts.aspx

The above link will get you started, don't rush in but do some reading first. With generalist Investment Trusts you are less likely to lose a large proportion of your initial investment because of how your money is spread around, but gains may be not as high as a specialist trust investing in one sector.

The thing I'm concerned with, which I don't know if it's even possible is this: If I give out my £1000 and the stocks fall or crash - 'worst case senario' then I would only loose my £1000 I wouldn't be asked to pay any further funds in any way?

I don't know how silly that question sounds but I'll like to know if that's possible, thanks.

rockitup

EnzoMan wrote: »

The thing I'm concerned with, which I don't know if it's even possible is this: If I give out my £1000 and the stocks fall or crash - 'worst case senario' then I would only loose my £1000 I wouldn't be asked to pay any further funds in any way?

I don't know how silly that question sounds but I'll like to know if that's possible, thanks.

No, if investing into shares, Unit Trusts, Investment trusts you are only at chance of losing your initial investment if the entire company or companies went bust. IT's and UT's hold a basket of shares say between 30 and 100 or more and the risk is therefore better spread.

If you went down the route of spread betting or CFD's then you could be likely to lose more than you initial investment unless covered by guaranteed stop losses but stay away from these forms of gambling as a new investor

jimjames

EnzoMan wrote: »

The thing I'm concerned with, which I don't know if it's even possible is this: If I give out my £1000 and the stocks fall or crash - 'worst case senario' then I would only loose my £1000 I wouldn't be asked to pay any further funds in any way?

I don't know how silly that question sounds but I'll like to know if that's possible, thanks.

Buying an funds or investment trust would only lose (at maximum) the amount you invested. The chances of losing your entire investment in a general UK fund are very small indeed; even during the crash over the last 3 years the maximum drop was around 50%. You would have only lost that if you sold at the worst point as most of that drop has now been recovered.

I use both investment trusts and unit trust ISAs. Hargreaves Lansdown are very good for ISA based on funds and as mentioned above if you invest monthly you can get round the £3000 lump sum limit.

bendix

Given the questions the OP is asking, I suggest the best way to invest the money is buy an Idiots Guide to Investing book for £20 and do nothing with the £980 until he's learned some basics.