How should I start investing?

StreetFightingMan

Thanks. I understand that an S&S ISA provides no protection from capital loss - only tax.

With that being said, isn't an ISA a no brainer? Why wouldn't I start out with one?

StreetFightingMan

I have just got a few books on the subject btw, looking forward to getting stuck in on them just thought I'd ask a couple of questions on here first. Thanks

grey_gym_sock

StreetFightingMan wrote: »

With that being said, isn't an ISA a no brainer? Why wouldn't I start out with one?

well, there are a few providers who charge more to use an ISA, but you can just not use them ... so basically, you are right: why not start with an ISA?

ChesterDog

iAMaLONDONER wrote: »

Hmm but food selling is the one business that won't go completely bankrupt as we all have to eat!

I am a bit late to the party here but, in the context of investment, 'food selling' is not a business, it's a sector. This is the point of diversifying: across sectors and within sectors. Across geographies and within geographies.

It would be a big mistake to concentrate on any one company within different sectors and consider yourself diversified.

iAMaLONDONER

This fund looks good with a very low 0.44% fee and 0% initial charge. Or am I missing something?

https://www.fidelity.co.uk/investor/research-funds/fund-supermarket/factsheet/performance.page?idtype=ISIN&fundid=GB00BJS8SF95&UserChannel=Direct

iAMaLONDONER

BillJones wrote: »

The ISA is the wrapping, not the investment. It carries precisely zero protection against capital loss.

Before you jump in, please educate yourself properly (i.e. not on here...) Look up modern portfolio theory, understand risk-adjusted returns, correlations, volatilities, dividends and yields.

Read the FT. Daily, and so on.

I mentioned S&S ISAs as it's tax free so increases potential returns (providing you aren't charged much more in fees by the broker/platform). I had a Virgin S&S ISA bond and gilts last year but I closed it down to get 5% from Natonwide FlexDirect

BillJones

iAMaLONDONER wrote: »

I mentioned S&S ISAs as it's tax free so increases potential returns (providing you aren't charged much more in fees by the broker/platform). I had a Virgin S&S ISA bond and gilts last year but I closed it down to get 5% from Natonwide FlexDirect

Yes, ISAs have advantages, but it 's really important that you do your research into what you are actually investing in (the products, no the tax-free wrapper).

As I said above, you need to understand what things such as correlation, volatility, risk, dispersion, diversity etc mean, and about how you can change the ratio of these various things by varying your holdings.

jimjames

iAMaLONDONER wrote: »

I mentioned S&S ISAs as it's tax free so increases potential returns (providing you aren't charged much more in fees by the broker/platform). I had a Virgin S&S ISA bond and gilts last year but I closed it down to get 5% from Natonwide FlexDirect

Are you really sure that investing in S&S is for you? On the one hand you've invested in one of the lowest risk options yet close it down to get a better return on a cash account but are also talking about investing in shares that could go down 100% to nothing.

If you were serious about investing you could have moved that S&S ISA into something giving a better potential return rather than just cashing it in at the first sight of a 5% return. From that I get the impression (maybe incorrectly) that you'd sell out if you saw your investment starting to drop and move back to cash instead.