Asking for stocks and funds investing practical beginner questions and advice

MikeDeezee

The average 5% annual return comes from FTSE100 and S&P500 simulators looking at the last 10 years (including dividends). By 'safe' I mean that they have been known to somewhat-consitently grow in value, yes I do understand that the past is not equal future returns. What do you think are "fund-and-forget" funds, ones for beginners that do not have enough experience to actively manage their portfolio? Also in regards to brokers, I looked at monevator's table, is there really no difference between them except the fees charged? It seems that the whole internet has a lot of theoretical advice to new investors, but it lacks actionable information.

1) I am looking to start off with passive investments and invest £50-£100 , so called 'invest and forget' funds, (if I get it right) index funds (FTSE100, S&P500, DOW JONES) which don't have too much volotility, and seem to have fairly stable past performance (which I do now doesn't equal future returns). Over the past 5-10 years they increased in value by 5% per annum average (including dividends).

2) In many posts and articles I read when they spoke about investing into stocks and shares and they were comparing them with other asset classes they assumed 10% annual growth of funds (yes in the past I know it doesn't mean it will be that high in the future), what funds where they looking at to get such high return?

3) What do you think other "fund-and-forget" funds are worth looking at? The ones for beginners that do not have enough experience to actively manage their portfolio?

4) In regards to brokers, I looked at monevator's table is there really no difference between them except the fees charged, and funds available? Can you personally recommend any?

george4064

FTSE is far from a 'fund-and-forget' fund, its more like an inbalanced index weighted heavily to oil/miners.

You should take a look at the multi-asset funds available, such as Vanguard LifeStrategy (100%, 80, 60, 40 or 20% in equity) or L&G Multi-Asset fund.

chockydavid1983

As mentioned above, for a 'fund and forget fund', this needs to be something well diversified rather than single sector.
Personally, I hold VLS 100 and am about to add around 5% to BlackRock's property REIT for further diversification.
I think there are some platforms that have more features than others and/ or better websites but IMO you don't need that if you're going to be funding and forgetting, just go for the cheapest.
I have my S&S ISA with Cavendish and my SIPP with Best Invest and it all seems fine so far.

AnotherJoe

I am looking to start off with passive investments and invest £50-£100
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Do you mean monthly? If you mean as a lump sum, its simply nowhere near enough by a very long way, the spread and dealing costs will destroy years of returns. Put it in a higher interest current account in that case, you can get 5% with TSB with zero risk.

If you mean monthly, I'd agree VLS100 assuming you are young and expect it to be there for years.

Cant help on the broker, there are comparison tables knocking around on the web you can google for, the two that chocky mentions i think come up well on those but I have no personal experience of either. Some brokers will also do good deals on regular savings, so check that, if you are investing £50 at a time ad hoc that will be much more expensive with some brokers than others and there are savings to be had with a regular plan.

chockydavid1983

http://www.comparefundplatforms.com/

dunstonh

1) I am looking to start off with passive investments and invest £50-£100 , so called 'invest and forget' funds, (if I get it right) index funds (FTSE100, S&P500, DOW JONES) which don't have too much volotility, and seem to have fairly stable past performance (which I do now doesn't equal future returns). Over the past 5-10 years they increased in value by 5% per annum average (including dividends).

That is unrealistic. For you to operate a model portfolio with passive funds covering each of the main sectors, you would need around 10 funds. Lets say your Japan allocation was 3.8%. On £50, that is just £1.90.

No sensible investor would use a FTSE100 tracker in the portfolio.

3) What do you think other "fund-and-forget" funds are worth looking at? The ones for beginners that do not have enough experience to actively manage their portfolio?

Multi-asset funds largely cover the lazy investor.