Where to get help with investing in Unit trusts

saveonarola

khampson wrote: »

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.

If people had realised that you hadn't decided yet what funds you wanted to buy, or even what kinds of investments you wanted to make, I doubt they would have suggested you open an HL account. Choosing a broker before deciding what investments you want is rather like deciding where to go on your honeymoon before you've had your first kiss.

Anyway, not to worry. I've just noticed that you've started another thread recently which contains a bit more information about your plans: £80 to invest each month, probably in funds, etc. HL is often a good option for small investors because there is no charge for the ISA 'wrapper' and no charge for buying and selling funds. What you pay is an annual charge - the TER - which is a percentage of the amount you have invested (from which, generally speaking, HL takes a commission, but you don't have to worry about that) and which varies depending on the fund.

That still leaves you with the question of what fund, or what kind of fund, to buy. And that brings me back to what I posted before about your goals, appetite for risk, etc.

Edit: To clarify, HL don't charge for buying and selling unit trusts/OEICs, but like other brokers they do charge for buying and selling stock-market 'quoted' investments - that is, ETFs, Investment Trusts and individual company shares. I didn't want to say this, because I didn't want to over-complicate things for you so early on, but it's important that you know the difference between investments that are 'quoted' and those that aren't, if only because the charges tend to be different. As Imnoexpert says in an excellent post above, I can't emphasise enough the importance of doing some reading if you want to DIY. I've been researching on and off for three months and I'm only now just about to make my first investment!

saveonarola

Imnoexpert wrote: »

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.

One thing to add to this: only invest through them or alone when you are sure you understand the products and the charges and when you understand who they work for and how they make a living. Everyone who works in the industry has to make money somehow, so in order to understand their advice, it's just as important to understand how they make their money as it is to understand the products themselves. For example, an adviser who works for a financial institution will only recommend the products of that financial institution, and while an IFA may have access to far more products, whether they are paid by commission or by fee is liable to influence the kinds of investments they specialise in. I'm not saying that they'll give bad advice, just that you have to know the kind of products they're likely to recommend in order to be sure that you're talking to the right person.

Hope this helps.

psychic_teabag

http://www.candidmoney.com/investment/default.aspx is another site that gives a fairly gentle introduction to investing.