Buying shares help/avice

r192

Hi,

i am looking into investing in shares in a few companies in the top 100 voaphone, glaxosmith k and a few others.

i have looked over this forum and done a bit of research and understand there is numerous ways to do this.

what would be the most efficent way as i would be looking at putting between 100-200 per month into these shares and then re investing any dividends back into the shares. I have quite happy to have this money invested for a few years if not more and will invest no more than 10 percent per sector and no more than 5 percent into each company

if you need any further information let me know

Many thanks

Linton

Buying only £100-£200 worth of a share is in general inefficient as there tends to be a minimum dealing cost of around £10. I would say £1000 is a better minimum purchase. So in this case you would save your monthly payments in a deposit account and then transfer larger lump sums to share trading account, say once a year.

However Halifax have an option whereby you can regularly buy small numbers of commonly traded shares at a time with a dealing cost of £2.

r192

thanks i will have a look into it, i do have a few thousand saved up that i could put into shares but i would rather drip feed a smaller amount per month as i will be starting of so i can limit my risk to start with

thanks

jules9

Halifax share builder is your answer. I put a couple of hundred in when i feel like it.
Only £2 to purchase as many or as little as you wish.
Only certain dates each month you can invest but that's not a problem for small amount investing.
Any queries pm me

r192

thanks jules

Thrugelmir

For the sum you are looking to drip feed. Consider one of the Investment Trust saving schemes. You'll then get a wide exposure to the Companies that you are looking to invest in.

Theyarv1

If you specifically want those shares then a regular saver option as mentioned above is definitely for you.

If you are happier with something a little broader you could look at buying an ETF that includes those shares - perhaps a FTSE income ETF as this would require just a single purchase

thriftychap_2

Take a look at the Fundsmith Accumalation Fund. I invest in this each month and have had 15% gains in its first year. Sound and logical fund IMO.

jimjames

You could always use a FTSE100 tracker fund in an ISA. For the amounts mentioned it would be the most cost effective way of saving - as long as you don't use Hargreaves Lansdown as they have fixed fees for trackers which are very high for small amounts.

kharne

jules9 wrote: »

Halifax share builder is your answer. I put a couple of hundred in when i feel like it.
Only £2 to purchase as many or as little as you wish.
Only certain dates each month you can invest but that's not a problem for small amount investing.
Any queries pm me

Similar to interactive investor-but iii only charge £1.5! Their charges for reinvesting dividends are also only 1% with no minimum charge.

C_Mababejive

Dont do it. You will lose your shirt. The amounts you are talking about are too small.

I'd advise you do some research and open a funds isa with a provider such as HL