Easy investment options?

Abatement

I currently have all my savings (around £50k) in savings accounts earning fairly miserable interest rates (2.5-3% at best) and would like to diversify a bit.

I'm happy to take on a bit of risk, but whenever I've dabbled in the stock market I've found myself becoming a bit obsessive about how my investments are 'performing', which I'd like to try to avoid.

So I guess I'm looking for recommendations of the best way to invest for a (hopefully) reasonable return, but still being able to put money in and 'forget about it' to some extent.

Does that make sense?

innovate

Start with reading some books, such as "Smarter Investing" by Tim Hale. And/or read up online, e.g. on http://monevator.com/category/investing/passive-investing-investing/

robotrobo

Abatement wrote: »

I currently have all my savings (around £50k) in savings accounts earning fairly miserable interest rates (2.5-3% at best) and would like to diversify a bit.

I'm happy to take on a bit of risk, but whenever I've dabbled in the stock market I've found myself becoming a bit obsessive about how my investments are 'performing', which I'd like to try to avoid.

and 'forget about it' to some extent.

Does that make sense?

will you be able to smile when your investments are heading south?, i dont like that feeling so i choose not to take the gamble, even though its a nice feeling when the climates good.
Ihave held investment trusts , unit trusts , shares , pearl plans , norwich union , & numerous others over a 25 year span , the only share i have now is a unit trust , JUPITER FINANCIAL OPPS , i am not reccomending this share to you, am i makeing loads of money ?, not really , been in it since launch & hold £20000 in it , will sell when i feel the time is right, i am most content now to pick up the measley interests on offer, at least the £ is there!!, i think a lot of people would be content to have hold & not GAMBLE £50000 which is what you are going to do! again.
best of luck.
mr bean

ccbrowning

It does make sense. I'd recommend exactly what innovate proposed as a good first start. You also need to realise that your savings accounts are most likely losing money due to their interest rates being less than the rate of inflation, too.

jimjames

Holding 100% of your investment portfolio in a single fund based on a single sector might be gambling but a sensible spread across different markets and styles would not be.

It is hard not be obsessed with performance but it certainly makes sense to have some investments to go alongside your cash savings.

You don't say your age and if you are earning. If you are then the mix would be different to someone who is retired.

atush

I would suggest, during the learning process, if you want to get started investing to start a regular saving into an investment trust or trusts. A good general with Global investments, and perhaps and income one (these tend to be more UK based.

Regular saving will smooth volatility, and give you time to read and research. I would keep a min of 6 months spending in cash though.

BLB53

...but whenever I've dabbled in the stock market I've found myself becoming a bit obsessive about how my investments are 'performing', which I'd like to try to avoid.

I used to be the same until I realised it was best to focus not on share prices (which are up and down on a daily basis) but instead to focus on steadily rising income.

Now I really don't care much whether the FTSE is up or down - I have bought a 'basket' of a dozen or so investment trusts. Every 3 months they each pay out a predictable dividend (like clockwork) and once a year they put out an annual report and increase the dividend for the coming year - this year the average increase was 5%.

I won't go into more detail here but earlier in the year I read a good ebook 'Slow & Steady Steps..' which gives a very detailed step-by-step guide on how to do this using either shares or investment trusts or both. http://www.amazon.co.uk/Slow-Steady-Steps-Wealth-ebook/dp/B007EBLN3G/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1355501274&sr=1-1

Good luck with whatever you decide.

jimjames

BLB53 wrote: »

I used to be the same until I realised it was best to focus not on share prices (which are up and down on a daily basis) but instead to focus on steadily rising income.

Now I really don't care much whether the FTSE is up or down - I have bought a 'basket' of a dozen or so investment trusts.

From previously being obsessed about the FTSE rising I am now the opposite and hoping for falls so that I can get more into my ISA at lower prices. I guess it depends on whether you are adding to your investment or just wanting them to increase long term.

Abatement

BLB53 wrote: »

I used to be the same until I realised it was best to focus not on share prices (which are up and down on a daily basis) but instead to focus on steadily rising income.

Now I really don't care much whether the FTSE is up or down - I have bought a 'basket' of a dozen or so investment trusts. Every 3 months they each pay out a predictable dividend (like clockwork) and once a year they put out an annual report and increase the dividend for the coming year - this year the average increase was 5%.

I won't go into more detail here but earlier in the year I read a good ebook 'Slow & Steady Steps..' which gives a very detailed step-by-step guide on how to do this using either shares or investment trusts or both. http://www.amazon.co.uk/Slow-Steady-Steps-Wealth-ebook/dp/B007EBLN3G/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1355501274&sr=1-1

Good luck with whatever you decide.

Thanks. What sort of investment trusts are these? I think it sounds like exactly what I'm after.

I suppose what I'm looking for is higher risk/return, but without the volatility/emotional rollercoaster of daily ups and downs? Maybe that's something that doesn't exist...but what you describe sounds like it fits the bill.

BLB53

Thanks. What sort of investment trusts are these? I think it sounds like exactly what I'm after.

The ITs I hold include Murray International, City of London, Aberforth Smaller, Temple Bar, Edinburgh, Dunedin Income, Law Debenture, Murray Income, Henderson Far East and Schroder Oriental.

I also hold a portfolio of individual higher yield shares eg Vodafone, Glaxo, Unilever, Pearson etc and run the two in tandem. So far the IT portfolio is winning (2 years) but this year the dividends have increased at an average of 10% on the shares porfolio and only 5% for the IT.

Obviously, when you have bought the individual shares, there are no further charges so in theory, over time, it should out-perform the IT portfolio as the latter obviously involves the deduction of the annual charges (plus any performance fees).

You can do more research on www.theaic.co.uk and also www.trustnet.com

Good luck.