£50 per month to invest, up to 15 years. Where?

lemon26

Hi, as the title says, I have £50 per month to invest, I hopefully won't need it for another 15 years or so, but I don't know where to invest it. Any thoughts would be appreciated.

I currently have £1,000 in my employer's shares, with a regualr monthly investment of £50 (to be increased to £100 in near future).

I also have an existing S&S ISA with Fidelity which worth around £4,700 invested as follows:

Jupiter Merlin Growth Portfolio: 92%
JPM Natural Resources: 2%
JPM New Europe: 6%

I also have a work pension, through Zurich, which is invested in a Legal & General Global Equity fund, if this is important.

Where would be best to invest a monthly amount of £50? Any thoughts please?

Thanks, L

dunstonh

S&S ISA would typically be the normal option used for that sort of thing.

atush

I would likely use an isa to invest in something else you aren't invested in- maybe small caps, maybe income funds, emerging markets?

lemon26

Hi atush, are there any particular funds? I'd like to invest in the UK if possible, in small companies (maybe I'm being sentimental, trying to help out economy) but don't know which fund would be best.

Apologies, if it wasn't clear, I'm looking to add to the existing Fidelity S&S ISA.

atush

Try not to be sentimental with money, the UK isn't the only economy out there lol.

I invest in small caps in Asia (aberdeen Asian smaller companies investment trust). There are also UK income funds, but you can't invest in the UK for emerging markets lol.

lemon26

Hi atush, I know, sorry! There's so much choice, where to start... I know very little about Asia and the economies over there etc. so was wanting to stick a little closer to home .

I don't want to invest in Europe as it's not going too well for them at the minute but, from teh sounds of it, we're on the up (if you believe everything / anything the Gov't says!).

I know it's over a long term (15 years +) but Asia would seem awfully risky to me...

dunstonh

There's so much choice, where to start... I know very little about Asia and the economies over there etc. so was wanting to stick a little closer to home .

And how much do you know about UK companies?

I don't want to invest in Europe as it's not going too well for them at the minute

European Equity outperformed UK Large cap in 2012,2011,2008,2007,2006,2005,2004,2003
European Equity outperformed UK Small cap in 2011,2008,2007,2005,2004.

How much about Europe and the UK do you really know and how much is derived from media?

I know it's over a long term (15 years +) but Asia would seem awfully risky to me...

Depends on which parts of Asia you are looking at. Does Australia sound risky for example?

Trying to pick regions to invest mostly into is bad investing. This is why multi-asset funds exist. However, two of the funds you invest in are very high risk. Above that of Asia Pacific funds in general.

lemon26

Hi Dunstonh,

Thanks for your thoughts, where would you suggest? I admit that most of what I know about the UK and Europe is gleaned from teh media, and hence may not be correct. I agree, Australia doesn't sound as risky as, say, Taiwan etc.

I take it you're referring to the New Europe and Natural Resources funds as very risky?

Thanks, L

dunstonh

Thanks for your thoughts, where would you suggest?

I cant suggest because I have a liability for what can be considered advice. Forums, facebook, newsgroups etc are treated the same by the regulator as face to face advice. All I can really do is prompt and get you to consider things. I cannot make specific recommendations. However, I would look at something multi-asset and diverse within the fund.

I take it you're referring to the New Europe and Natural Resources funds as very risky?

They are up there with the highest risk unit trust/OEIC funds you can get.

Drp8713

I am just starting a £50 a month S&S ISA and £50 a month SIPP with HL.

As you can only choose one fund per £50 I have gone for UK and Europe first, then after 6 months I will switch new investments elsewhere to diversify.

I have chosen:

ISA: Jupiter European Income Units

SIPP: Cazenove UK Smaller Companies Class B Accumulation

Earmarked Aberdeen Asia Pacific A Accumulation and Invesco Perpetual Distribution Accumulation Shares as possible next funds.

Sure people will agree / disagree with my choices.

I am also going to try a do small top ups where I can to buy some individual shares alongside the finds. I have just put £120 in to buy my first £100 odd pounds of shares. I think these will go in bigger companies, thinking the usuals GSK etc unless I can come up with something better

dunstonh

Sure people will agree / disagree with my choices.

Until your £50pm gets to about £10,000, it really doesnt matter that much. You may as well go cheapest multi-asset appropriate for your risk profile/capacity for loss.