Advice sought

831badger

I am looking to invest £1000 in to selftrade initially and then £100 per month in to the account. I have got my first 100 trades free. I have already used my isa and would like advice on this method of saving. What would be good (safe, if there is such a thing...) shares to start with? I am looking at this as a long term investment.

Thanks ahead for any advice on getting in to this world...:beer:

dunstonh

What would be good (safe, if there is such a thing...) shares to start with?

Before you do anything, you need to understand how these things work. The fact you have asked about a safe share suggests you are not ready to invest yet.

Also, it is against board rules to give share tips and even if it wasnt, the worst place to get share tips is the internet. If it is full of people aiming to ramp up share prices.

Meeper

My advice would be to consult an adviser. Not to be glib about it, but if you are asking for help with the most basic question, you need to do a lot more research and study into the area before embarking on a diy investment project.

Some irresponsible posters on here make it sounds like the easiest thing in the world to do, but it isn't. If you want to manage your own investments, that's a noble ideal, but a better plan would be to let an adviser look after the money initially with you questioning everything he does and ensuring that your understanding grows over time. Then, when you feel comfortable enough to be able to do those things yourself (note - this may take a couple of years) then do it. But going into self-trading without any knowledge or experience is the fast-track to losing all your money.

westy22

My advice would be to consult an adviser. Not to be glib about it, but if you are asking for help with the most basic question, you need to do a lot more research and study into the area before embarking on a diy investment project.

If you were talking about staking all your worldly goods and your entire future on it then I would agree. If we are talking about £1,000 and £100 per month to have some fun with and on the understanding that you could lose up to 50% of your investment, then by all means go ahead. You will not go far wrong with most of the FTSE 100 companies; buy names you are familiar with and who you think have good potential for the future. If they pay a decent (5%) dividend as well then all the better. Try to get some diversity between sectors i.e. a supermarket; a pharma; an oil company, etc. As your trades are free for the first few months you can afford to buy smallish quantities - perhaps £100-£200 per stock (remember some pharmas and oillies can be £25 to £35 for each share!).

Do your own research, as always!

BLB53

Thanks ahead for any advice on getting in to this world

I agree with westy, you really don't need an IFA for the sums involved. A good place to start research is www.monevator.com also www.fool.co.uk

Good luck!

Rollinghome

Disregard the self-promoting nonsense posted above by the "financial adviser". Most financial advisers wouldn't have a clue about investing their own money directly in equities let alone yours. Most will be former salesmen and the experience of the vast majority will be limited to selling retail products that pay sales commission and if, even worse, they work for a bank, they'll usually be limited to selling their employer's products.

Whether it makes sense for you depends on your objective. Don't put too much store by some of the tales of success on the internet because the vast majority of small investors will underperform the index, just as do the majority of fund managers after costs.

The problem with such a small sum is that you'll find it difficult to spread your risk by holding a wide enough portfolio. So for small amounts, the safest shares are likely to be in one of the steadier global growth investment trusts. They can have their capital spread between equities, bonds, commodities and property. And you would be a shareholder just as with any other company. See www.theaic.co.uk for more about ITs.

But if you want to buy shares in other types of companies because it's something that interests you rather than because you want to beat the indices then go ahead provided you understand the risk of holding a very concentrated portfolio. If on the other hand you just want to maximise your returns then you'd probably better using an investment trust savings scheme, a cheap tracker fund or, if you prefer, a managed unit trust.

qpop

Rollinghome wrote: »

Disregard the self-promoting nonsense posted above by the "financial adviser". Most financial advisers wouldn't have a clue about investing their own money directly in equities let alone yours. Most will be former salesmen and the experience of the vast majority will be limited to selling retail products that pay sales commission and if, even worse, they work for a bank, they'll usually be limited to selling their employer's products.

Do you think the IFAs here think they'll get business from threads like this? You're deluded if this is the case.

What the guys on here who are IFAs do have to say is worth listening to, as contrary to your pretty brash statement, they have years of experience between them. Whether you agree with them and their methods of investment or not, I recommend not openly insulting people who spend their lives advising people on savings, investments, etc.

Your ignorance is astounding in this case. If somebody can only advise on their employers products, they're not allowed to refer to themselves as an Independent Financial Adviser.

Please check your facts before talking rubbish.

Meeper

I must object to the IFA-bashing here. None of the respondents know the circumstances of the OP, so nobody can say whether £1000 and £100 per month is a significant sum to the individual or not. People saying "You don't need an adviser for such a small amount" need to get over themselves and this hatred of advisers.

darkpool

Meeper wrote: »

Some irresponsible posters on here make it sounds like the easiest thing in the world to do, but it isn't.

i think most people in the UK have the intelligence to research and make most big life decisions by themselves. for instance most people don't pay for advice on what uni course to attend/ what house to live in/ who to marry/ what car to buy. yet the ifa community seriously suggest that someone investing 1k needs to go to an ifa and pay for advice.

why are the ifa community so defensive on this thread? is it because they know most clients would be better off without their "service"?

Lokolo

Meeper wrote: »

I must object to the IFA-bashing here. None of the respondents know the circumstances of the OP, so nobody can say whether £1000 and £100 per month is a significant sum to the individual or not. People saying "You don't need an adviser for such a small amount" need to get over themselves and this hatred of advisers.

To be fair, I usually support the IFAs on this board but your point of "Go and see an IFA" in post 3 is out of order.

The guy wants to learn to trade, hes opened a trading account and is asking for some "safe-ish" shares. This isn't at all an IFA "sale".

If the OP came on saying "Oh I some money and want to invest it to provide some income", then yes, an IFA would be useful, however this isn't the case.

When I first came to this board I didn't know a thing about investing, but thanks to regulars (including Dunston) I have learned a lot and thats what I wanted to do, learn. However, if I just had "Go and see an IFA", it would have been completely pointless and I wouldn't have learned a thing.

Dunstons post was completely adequate for the OP, yours wasn't.

(not that I am defending rollingstone or darkpool, you'll never see that from me )

Meeper

Nice positioning Darkpool. If I defend my position I'm defensive and thus reinforcing your argument. If I agree with your position, you win the point. If I say nothing, you will doubtless make the point that I have been "defeated" and retired from the thread with my tail between my legs.

Most people have the intelligence to research how to strip down the engine on their car and re-fit their brakes. But they don't, and for very good, and obvious reasons.