Help with entering the world of investing!

banjo57

Hi everyone

I'm a student and looking to make my first foray into the world of investing..

I have my savings stashed away in a building-society account, where they're earning 3.75% - which as a rate isn't bad at all, but doesn't particularly excite me..

I'm looking to initially invest around £2,000, and I'm mainly considering funds, as opposed to purchasing specific company shares through a broker. I guess my instinct is to go with a fund focused on an emerging market...

Any advice on who to approach? How would, say Barclays Capital compare with Vanguard?

Thanks all

Niv

Most people on here seem to suggest the Vanguard is the best, I do not know details but am sure someone will be along shortly with further detail!

le_loup

banjo57 wrote: »

How would, say Barclays Capital compare with Vanguard?

What are the cost differences?

Linton

1) First job is to select and register with a cheap platform/online broker. Some charge a % rate and some fixed. For small portfolios % is best. See monevator's list. Some of those are well known and used by many people here, others are more obscure.

2) Transfer in your £2000. At this stage with your "foray" you should only be investing a small fraction of your total wealth. You should be prepared for a significant loss in the short term but good profits in the long term (5 years +)

3) Buy a fund. You could choose something relatively stable and sensible like a global fund which invests in a broad range of companies from all over the world. Vanguard LS fund are often recommeneded here but there are many others. Alternatively you can choose something more spicy such as Emerging Markets with hopefully (but not necessarily) better returns but greater fluctuations. Or of course a mixture.

Whilst you are only investing a relatively small amount of money I think gaining experience is more important than than different levels of return. Investing in a fund rather than individual shares ensures that, barring an end of the world scenario, you wont loose everything.

For the details of individual funds look on Trustnet

Start reading about investing - there are many websites and books that can help you.