Beginner advice for small investments

Judder01

Hey everyone,

Basically I'm looking for a little advice (Or pointing in the right direction to where I can find this out) about investment. First of all I am a student so at the moment we are talking very little sums but I believe this would be beneficial and build up nicely over the long term.

I currently have a few hundred quid in a Virgin FTSE All-share Tracker (ISA) and that is it. Although the Virgin tracker has a 1% annual fee (I believe this is large compared to others?) it has no other fees so I can add a little as a like whenever I want which is real handy. I'd be willing to add another couple of hundred and then a small sum each month (~£20) into whatever is suggested.

Is it worth seriously sorting a little portfolio out with these small sums? I find it very interesting and would love to start now, albeit with small sums, even just for the experience so later on in life I understand more about this kind of thing when I can invest significantly more. Obviously at the moment it is (almost) entirely UK equities, so would the first step be international equities and is this possible with such small sums at the moment?

Thank you very much in advance :j

dunstonh

I currently have a few hundred quid in a Virgin FTSE All-share Tracker (ISA) and that is it. Although the Virgin tracker has a 1% annual fee (I believe this is large compared to others?) it has no other fees so I can add a little as a like whenever I want which is real handy. I'd be willing to add another couple of hundred and then a small sum each month (~£20) into whatever is suggested.

It is a very expensive option. Although it does cater for small amounts. Probably why it is expensive.

Is it worth seriously sorting a little portfolio out with these small sums?

No. Realistically a portfolio fund would likely be the best option. It is unlikely you would be able to craft a portfolio with small amounts as spreading it amongst say 10 funds would not be cost effective and you would fall foul of minimum amounts with many providers.

Judder01

dunstonh wrote: »

It is a very expensive option. Although it does cater for small amounts. Probably why it is expensive.

Thankyou! Are there any cheaper options that I could realistically be able to invest in with these small sums?

dunstonh wrote: »

No. Realistically a portfolio fund would likely be the best option. It is unlikely you would be able to craft a portfolio with small amounts as spreading it amongst say 10 funds would not be cost effective and you would fall foul of minimum amounts with many providers.

Hmm ok. I wasn't thinking 10 funds, I was thinking more along the lines of 2-3 to get me started although a portfolio fund sounds interesting. Do you know of any which would be a good starting point for research?

Thank you for the reply

xylophone

http://www.investorschronicle.co.uk/2012/10/22/funds-and-etfs/investment-trusts/saving-with-investment-trust-schemes-MK45n2eWPDIDADhAAdzdWJ/article.html

Maybe consider regular saving into an investment trust through ISA if possible?

Or maybe open an ISA with the likes of Hargreaves Lansdown/ Cavendish etc and contribute regularly?
http://www.hl.co.uk/ You can look at fund research here.
http://www.cavendishonline.co.uk/investments/our-service/

JohnRo

Judder01 wrote: »

Do you know of any which would be a good starting point for research?

This thread is worth a read.

https://forums.moneysavingexpert.com/discussion/4392271

Judder01

Thank you.

I've been looking around and it seems that the majority require a minimum of £50 per month, which at the moment I cannot commit to. I think I was a little naive and expected there to be something similar to the Virgin tracker I currently have (No flat fees or minimum amounts).

I'll keep researching and looking around and in the meantime any other advice would be very much appreciated

atush

Well, there are some investment trust savings plans like Invesco perpetual that take from 20 quid per month? I have one with them, and it has done really well this last year. They have a number of trusts to choose from.

I started investing just 20 a month like you suggest.

gasmanmartin

M & G start from £10 per month - worth a look at their site.