Where to get help with investing in Unit trusts

khampson

Hi, I have just opened a self select isa with Hargreaves Lansdown and I would like to know where I can read and get help with where to invest my money into what unit trusts.

Also when I search for funds on the HL site it comes up with most trusts twice, 1 with accumulation and 1 with income in brackets, what's the difference?

Keith

qpop

Accumulation units automatically re-invest any dividends paid by the underlying investments
Income units pay dividends out to the investor

https://www.trustnet.com is pretty much the most complete source for UTs/OEICs available.

https://www.citywire.com has a novel and useful way of ordering/suggesting funds

https://www.morningstar.co.uk also has good information and suggested funds.

None of them are completely unbiased, but HL really has a reputation for pushing funds for "selfish" reasons.

That being said, the research information on HL's website can be pretty useful.

https://www.iii.co.uk has some info on trusts/OEICs, but is more share focused

khampson

So how do you know what unit trusts to buy into? Do you just go on the sites listed above say? Can I buy help from a financial advisor?

Keith

saveonarola

khampson wrote: »

Hi, I have just opened a self select isa with Hargreaves Lansdown and I would like to know where I can read and get help with where to invest my money into what unit trusts.

If you want information about funds, the sites linked to above by qpop will do the job. If you haven't yet considered asset allocation and investment strategy, then the abundance of information will probably just be more confusing. A well-devised strategy will depend on your other assets (eg. property, pension, cash), your personal circumstances (eg. family, job, health), your life goals, the amount you have to invest, your time horizon for the investment, your tolerance for risk, your tax status and so on. If you want a broader introduction to those matters, you might want to start with a more general guide to investing, like these:

http://www.fool.co.uk/Investing/guides/The-Difference-Between-Saving-And-Investing.aspx

http://www.incademy.com/pages/home.htm?ginPtrCode=10002

dunstonh

I would like to know where I can read and get help with where to invest my money into what unit trusts.

An independent financial adviser. (not a tied FA)

However, an IFA would not use the HL platform as it would be too expensive.

saveonarola

khampson wrote: »

Can I buy help from a financial advisor?

Of course, if you don't want to do the research, you could always pay a financial adviser. Whether this is economic will probably depend on how complicated your affairs are and how much you have to invest. Bear in mind, however, that if you want to understand the advice you're given and ask pertinent questions, you'll probably have to do a bit of background reading.

qpop

If you're a total beginner with investment, what prompted the HL account opening?

khampson

Because its what people suggested on this forum, I wanted a self select isa, I was going to open one with my bank (Halifax) but was advised to stay away, I wanted a long term investment that was not as risky as buying single shares.

Keith

Lokolo

http://tools.morningstar.co.uk/uk/fundscreener/default.aspx?Site=uk&LanguageId=en-GB

Use this fund screen. Have a play around with it.

The key options are IMA Sector, so where you want to invest. Distribution Status, if you want income or not. Risk, how much risk you want to take. And then the Style Boxes depending whether you go for fixed income or equities.

Linton

Lokolo wrote: »

http://tools.morningstar.co.uk/uk/fundscreener/default.aspx?Site=uk&LanguageId=en-GB

Use this fund screen. Have a play around with it.

The key options are IMA Sector, so where you want to invest. Distribution Status, if you want income or not. Risk, how much risk you want to take. And then the Style Boxes depending whether you go for fixed income or equities.

Sounds a reasonable starting point.

I suggest you look at past performance data to understand what can happen especially around the time of the credit crunch 3 years ago. This wont give you any guarantees of the future, but it will give you some understanding of how the various Sectors behaved in the bad times as well as the good.

If you are investing you must be thinking long term and need to accept that unpleasant things can happen in the short term and not panic.

trustnet.com provides tabulated data for funds in each sector.

Imnoexpert_2

Please be careful!

As my name suggests I'm no expert. The difference between me and some others is that I know that I'm not an expert. Now you do too.

I've seen financial advisers (mostly very nice people and often very well informed), read websites, read books, and look at the financial press. I still don't know a fraction of what is out there and find myself stumbling on things I ought to have known but didn't and things I thought I knew but then realised I hadn't understood properly.

Before you even think of doing your own investing (as opposed to putting money in a Savings Account) you should read some kind of basic book, Smarter Investing by Tim Hale is on my desk now and is recommended by me and many on this site but there are others. You should also look at the websites suggested by others and the articles and guides to stuff like asset allocation, and individual market sectors they contain. You can even run a dummy portfolio for a while.

Regarding internet forums. Treat them with a pinch of salt. Over a period of time on this one I know those I have confidence in and some who I have less. Remember anyone can (on the internet) claim all sorts of qualifications and boast of all kinds of miraculous results.

When you know a bit then see an Independent Financial adviser even see a bank adviser. Listen and compare what they say, and what you now know, and then question them. You will learn a lot from them. Only invest through them or alone when you are sure you understand the products and the charges.

Most people I guess don't have the interest, the ability, or the time to do all this and maybe they have to put their trust in an adviser without going through these steps. This adds extra risk to what can already be a very risky business.

At the end you may conclude that you want to diy for whatever reason; to save cost; because you think you can do better; to be in charge; or just for fun.

If it goes wrong then you will know know you did your best.