Help picking funds

Sillychuckie

OK, thanks DunstonH for confirming that perhaps I stepped too far from one side of the risk field to the other. Suggesting that the global bond is a step too far away from what I can afford for my risk profile, is precisely the type of advice I was after when I started this post.

I'll rejig my choices later today and hopefully come up with a portfolio that is more suitable (but still has room for growth which I can deal with next year).
Your help in this matter is really appreciated, I know its difficult for you to do so without venturing too close to specific advice (and also whilst not being paid for your trouble).
My extended thanks to all that have helped so far.

paulgilroy31

remember mortgage is usualy over 25 years best i think to invest safe until mortgage time then put it towards mortgage saving 5%on 4000 over 25 years thus also saving on tax and giving you more monry to play with at mortgage time probaly when you need it most

paulgilroy31

remember mortgage is usualy over 25 years best i think to invest safe until mortgage time then put it towards mortgage saving 5%on 4000 over 25 years thus also saving on tax and giving you more monry to play with at mortgage time probaly when you need it most

EdInvestor

Sillychuckie wrote:

So Ed, are you suggesting that my 2nd choice of funds is perhaps a little too 'safe', and I should venture back towards my first choice (or rather, mix and match so as to follow your sector suggestion)?

Yes.You're pretty well covered on the downside with all that cash so I don't really see the need for any bond funds.Stick with equities, property (especially since you don't yet have any)and perhaps some commoditities if you're feeling lucky.

dunstonh

remember mortgage is usualy over 25 years best i think to invest safe until mortgage time then put it towards mortgage saving 5%on 4000 over 25 years thus also saving on tax and giving you more monry to play with at mortgage time probaly when you need it most

That is an opinion based on what I assume is your risk profile. It certainly isnt appropriate for someone with a higher risk profile than you.

There is little point saving 5% on the mortgage when you have the risk profile to invest in with the potential of 10-15% p.a. average.

Plus, ISAs are an annual allowance that you lose each tax year. Over the long term, paying money into ISAs can be far more beneficial than clearing the mortgage.

paulgilroy31

maybe im missing something if you invest 4000 at 10% gain for 10 years . Are you not better off saving 5 or 6% on say 4800!! if put money into high intrest saver for two years}.over 25 years

jamesd

How do you get the extra 800 that you're saving 5 or 6% on?

If you're investing tax free in an ISA that's the same as tax free mortgage overpayments or offsets. So with a cash ISA if your mortgage is at 5.0% and you can save in a cash ISA at 5.5% you're better off in the cash ISA because it's paying 0.5% more in interest than you're paying in mortgage interest and over 25 years that's enough of a difference to repay one year early.

Same for stocks and shares ISAs and whatever the investments held in them are doing - 9% after management fees was quite readily obtainable over the last 5 years from funds like commercial property without high risk, though there will be some variation in value.

Jake'sGran

Hi, I would like to make use of my 4k ISA allowance and get some money into 4 funds (£1000 x 4) before the end of March.
This will be my first time investing (have only ever used mini cash ISA's).


Hi Sillychuckle - I have not read all the other responses but wanted to ask why you want four funds. I think I would have just two. If you invest via Hargreaves Lansdown there may be no or a very small initial charge plus an annual charge but it would still be times 4 which I would not think is very efficient. There are a few good European funds around e.g. Fidelity. I am pleased with the performance of that one. I have Jupiter income too but it is not as good as Invesco Perpetual High Income. Have you thought about Investment Trusts? They are much cheaper to buy. Good luck with your choices anyway.

paulgilroy31

good point i was getting my calks wrong re the extra 800 probaly more like 3-400 using high intrest savers or isa any way i was basing my theory on the fact that he said only wanting to invest for ten years and he was going to mortgage in 2-3 years . i guess im just to safe i sort of feel the best way to save money is to pay off your debt or get as little off in the first place to me its like saving without RISK:beer:

paulgilroy31

Jake'sGran wrote:

Hi, I would like to make use of my 4k ISA allowance and get some money into 4 funds (£1000 x 4) before the end of March.
This will be my first time investing (have only ever used mini cash ISA's).


Hi Sillychuckle - I have not read all the other responses but wanted to ask why you want four funds. I think I would have just two. If you invest via Hargreaves Lansdown there may be no or a very small initial charge plus an annual charge but it would still be times 4 which I would not think is very efficient. There are a few good European funds around e.g. Fidelity. I am pleased with the performance of that one. I have Jupiter income too but it is not as good as Invesco Perpetual High Income. Have you thought about Investment Trusts? They are much cheaper to buy. Good luck with your choices anyway.

hi jakesgran sorry to hijack bit could you please tell me how to invest in investment trusts i do invest 250 in shares a month using halifax share dealing can i do it through this