Started My Investments!

A_Flock_Of_Sheep

Well, I have now broken through to the other side!

I have left the cosy confines of cash in bank and have now set up my Investments (funds and some shares) with H&L!

I have started the funds off and will contribute over time to hopefully to take advantage of pound cost averaging.

Alas though the FTSE dropped today. It must have seen me coming! :rotfl:

marathonic

Good luck and remember, the dips are where you make your money. You only want to see one peak - the one where you sell. At all other times, cheer on the dips!!!

System

marathonic wrote: »

Good luck and remember, the dips are where you make your money. You only want to see one peak - the one where you sell. At all other times, cheer on the dips!!!

If only we knew when a peak is a peak and a dip is a dip!

A_Flock_Of_Sheep

marathonic wrote: »

Good luck and remember, the dips are where you make your money. You only want to see one peak - the one where you sell. At all other times, cheer on the dips!!!

Hi!

I have These funds so far:

Troy Trojan Income Fund Class 1
Invesco Perpetual High Income
M&G Optimal Income Class X

dryhat

A_Flock_Of_Sheep wrote: »

I have started the funds off and will contribute over time to hopefully to take advantage of pound cost averaging.

Alas though the FTSE dropped today. It must have seen me coming! :rotfl:

If you want to take advantage of pound cost averaging over time, then drops are good.

Well done and good luck

marathonic

teepee83 wrote: »

If only we knew when a peak is a peak and a dip is a dip!

True...

Having bought a house recently, all investments as well as cash, are gone for me. I'm working on re-building an emergency fund via a Cash ISA and then hope to join you back in the investment world.

I'll be working on the premise that we will, as some point, hit all time highs again - as is happening with the S&P and DOW.

I'll be investing the maximum allowance into an S&S ISA for 3 years, then continuing to invest on a monthly basis until markets are at all time highs again, however long that may take.

At that point, I'll have a wide variety of options available:

• Remain Invested
• Reduce Mortgage
• Upsize House
• Purchase a BTL
• etc.

At the moment, the option tempting me most is to continue saving the maximum into an S&S ISA until I can buy a site in a highly desirable area with no additional borrowings.

If there's enough equity in my property to get a good start on a self-build house, I'll sell up and start a new-build. Otherwise, I'll start back investing until that time comes.

marathonic

A_Flock_Of_Sheep wrote: »

Hi!

I have These funds so far:

Troy Trojan Income Fund Class 1
Invesco Perpetual High Income
M&G Optimal Income Class X

I think they're good choices. Not overly risky, which I consider a good thing considering the recent rises in the market.

Are you planning on a passive approach, with rebalancing or are you intending on switching funds from time-to-time?

Personally, I think the work involved in anything other than a passive approach isn't really worthwhile until you build up a sizeable fund.

For example, with a £48,000 pension fund at the moment, the difference between my best performing fund and worst performing fund is usually close to £1,000 - and that's with rebalancing every 6 months or so. With a fund under £5,000, the difference in these funds would, obviously, be less than £100.

At this point, it could be worth switching in and out of funds but, for my pension, I maintain a passive approach. By switching, I'd win some and lose some - but the winners and losers would probably even each other out over the years.

For this reason, I like to simply rebalance - buying more units in the poor-performing funds as they drop.

A_Flock_Of_Sheep

I know the Market can't really be predicted but shares have been rocketing recently. Since January. Do you think this is set to continue for a while or do you think this bubble will burst in only a few weeks time. The FTSE is nearly at the level it was just before the Banking Crisis took a massive chunk out of the graph.

A_Flock_Of_Sheep

marathonic wrote: »

I think they're good choices. Not overly risky, which I consider a good thing considering the recent rises in the market.

Are you planning on a passive approach, with rebalancing or are you intending on switching funds from time-to-time?

Personally, I think the work involved in anything other than a passive approach isn't really worthwhile until you build up a sizeable fund.

For example, with a £48,000 pension fund at the moment, the difference between my best performing fund and worst performing fund is usually close to £1,000 - and that's with rebalancing every 6 months or so. With a fund under £5,000, the difference in these funds would, obviously, be less than £100.

At this point, it could be worth switching in and out of funds but, for my pension, I maintain a passive approach. By switching, I'd win some and lose some - but the winners and losers would probably even each other out over the years.

For this reason, I like to simply rebalance - buying more units in the poor-performing funds as they drop.

I may look to switch funds from time to time. I am not totally decided. I was running a "virtual" portfolio with these funds plus a couple of emerging markets funds and the Marlborough Multicap Income. Over the course of a week the selection of funds grew and made a profit of about £170.

Today though the FTSE too a tumble and I think the IP High Income has dropped by 1.6p - mine is the accumulator version.

dryhat

A_Flock_Of_Sheep wrote: »

I know the Market can't really be predicted but shares have been rocketing recently. Since January. Do you think this is set to continue for a while or do you think this bubble will burst in only a few weeks time. The FTSE is nearly at the level it was just before the Banking Crisis took a massive chunk out of the graph.

While there is "QE to infinty" and interest rates remain low, the stock markets will rise.

Where else are banks going to gamble their risk free free money?

And from where else will governments be able to shout about rising GDP?


To describe the current stock market as a casino is an insult to casinos.

A_Flock_Of_Sheep

dryhat wrote: »

While there is "QE to infinty" and interest rates remain low, the stock markets will rise.

Where else are banks going to gamble their risk free free money?

And from where else will governments be able to shout about rising GDP?


To describe the current stock market as a casino is an insult to casinos.

As a new investor I did not think about QE causing the rise. The QE is where the Government gives money to banks???

What are peoples opinions on Bonds at the moment? The M&G fund I have is mainly corporate and government bonds.