Best long term investment...

DrSyn

Alice_Holt wrote: »

I like the large global Investment Trusts for long-term investment.

Some offer regular childrens savings accounts - i.e. http://www.jumpsavings.com/
https://www.bailliegifford.com/individual-investors/how-to-invest/childrens-savings-plan/

HouseQuest

Investment Trusts can go to a discount or a premium. They are not suggested as being suitable for beginners because of this added risk. If you do intend to invest in an IT, make sure you clearly understand this risk!

Funds and ETF's do not suffer from the discount/premium risk. Which is why they are more suitable for beginners. I suggest you keep to these.

HouseQuest

Cheers Dr Syn....I am a beginner and want something with little work for us to do. Ill nip back and see what people think of the choice Im looking at. Ive got to sort abbreviations and key terms first!

Alice_Holt

silvermum wrote: »

Can I ask why you like them?

Witan - (From: http://whichinvestmenttrust.com/about/ )

"Large and liquid global investment trust
Multi manager which means it selects the best external managers globally to manage different parts of its portfolio of investments
Dividend raised by 10%
41 years of increasing dividends every year

Opportunities:
On a discount since start of year in contrast to premium last year
Low cost multi-manager
Provides access to managers who would otherwise be unavailable to retail investors

Risks/Threats
Economic slowdown would affect many of the underlying holdings
Geopolitical event or war could slow growth

Our Verdict:
We think it’s a great way to gain access to a carefully curated and monitored portfolio of underlying mangers and for a great price, both in terms of the management fees, which are low compared to peers, and because it is on a wider discount than its 12 month average."

Cumulative 5 year Performance as at 16/11/2016 +113.8% (per Trustnet )

"Witan* From (http://www.moneyobserver.com/browse-money-observer-rated-funds)

Yield 1.62 per cent

Back in December 1974, you would have paid the equivalent of 7p for a share in Witan; by 2015, you would have been earning almost two-and-a-half times that, 17p, in dividends for each share, a yield of 189 per cent.

That statistic, from chief executive Andrew Bell, underlines the benefits of compound growth and taking a long-term view. Witan was established in 1909 and has a global mandate.

Unusually for trusts, it is a multi-manager fund with different specialists in charge of particular mandates. They include Artemis, Lindsell Train and Heronbridge in the UK, Veritas and Tweedy, Browne for the global element; and Marathon among the European managers.

*Denotes a Money Observer 2016 Rated Fund."


Scottish Mortgage: From (http://www.moneyobserver.com/browse-money-observer-rated-funds)

"With assets under management of £3.7 billion, Baillie Gifford's Scottish Mortgage is the largest global generalist investment trust in the UK. Last year, it won our Best Global Trust award. It has been managed for the past 16 years by James Anderson; in 2014, Tom Slater became his co-manager.

Anderson is fiercely committed to a long-term, high-conviction approach and since taking over has reduced the trust's holdings to just over 70, with the top 10 accounting for more than 50 per cent by value. Companies are bought on a minimum five-year view.

The managers look for inspirationally managed companies with strong competitive advantages and radical growth opportunities. Anderson has been a long-term believer in the power of technology, which is transforming an ever-wider range of industries from cars and healthcare to media and retail."

Cumulative 5 year Performance as at 16/11/2016 +163.9% (per Trustnet ) comparsion FTSE World Index +102.5%

"Two of the most successful 'global growth' trusts in recent years have been Lindsell Train and Scottish Mortgage. Both have outperformed the FTSE World index over three, five and 10 years.

They invest very differently, though: Lindsell Train has a 70 per cent exposure to the UK market, while Scottish Mortgage's exposure is less than 10 per cent.Scottish Mortgage aims to outperform its benchmark, the FTSE All-World index, over five-year rolling periods. However, its high-conviction approach can lead to volatile performance."

Both have served me well as part of a long-term diversified portfolio.
Worth considering their individual pros & cons for a long-term (18 yrs plus) investment. (Although a World Index tracker would be a more conventional choice if only one investment holding is held).

DrSyn

HouseQuest wrote: »

Cheers Dr Syn....I am a beginner and want something with little work for us to do. Ill nip back and see what people think of the choice Im looking at. Ive got to sort abbreviations and key terms first!

You should read all of this article & do some research before you buy anything.

http://monevator.com/why-do-investment-trusts-trade-at-a-discount-or-a-premium/

Best of luck!

bowlhead99

Unless their profits reduce and they lower the dividends and crash the share price and eventually close the business leaving the shareholder with nothing.

talexuser

Discussing the funds mentioned in the thread, I bought Murray International for the grandkids through the mothers ISA. Cheapest route was direct from Aberdeen but each top up needs to be a grand. It had a few lean years but jumped with the recent devaluation, the manager has a good long term record but is contrarian at the moment. I also have the Witan and Scottish Mortgage, the Witan safer with less volatility, but on a 20 year timescale it may not matter, both would have to be through a cheap share dealing platform if you can't ISA. I also have a couple of Vanguard funds and concur a world tracker might be the safest route if you don't like seeing large swings in value, even there a crash could be painful, you just hope a few years will see a recovery.

jimjames

Apart from the fact it's not free money, it's part of the company you already own, you do need to make it clear that this is a very high risk option unless you have a large portfolio and lots of diversification.
You can still be a long term buy & hold investor using funds rather than directly buying shares and will also get dividends too - around 4% at the moment for the FTSE100.

bowlhead99

Yes, dividend investing might not be as exciting as investing in tech stocks, just like copy pasting articles from things you read online is not as exciting as generating your own content and actually engaging in discussion.

However, actually being bothered to participate in discussion on a discussion forum is probably a waste of your time and effort if your goal is just to build up a post count until you are allowed to start spamming us with links.

Did you get your "buy and hold stocks" post from the incomeinvestors.com "Top Ten Buy and Hold Dividend Stocks" article from October? Or did you take it from thediv-net's "My 10 Favorite Dividend Stocks To Buy And Hold For The Next Decade" in November when they plagiarized the exact same opening paragraphs? I know sennamedia.ca certainly had it the same day as incomeinvestors, as a generic piece of copy.

I'll guess at the incomeinvestors.com one because though they and thediv-net both feature GIS and PG, it is only the former which used the exact same company descriptions as you (including the typo "every home in American has at least one...")

But I'm quite looking forward to finding out whether you are here promoting those North America-centric sites or just using other people's writing as filler before spamming us with some other kind of opportunity.

george4064

HouseQuest wrote: »

Cheers Dr Syn....I am a beginner and want something with little work for us to do. Ill nip back and see what people think of the choice Im looking at. Ive got to sort abbreviations and key terms first!

A popular choice for beginner investors is to invest in a global index tracker fund, popular onces include Vanguard LifeStrategy, L&G Multi-Asset and BlackRock Consensus.

The most popular of them is Vanguard LifeStrategy, they have a variety of options either 100%, 80%, 60%, 40% or 20% (these % denote the proportion of the fund invested in equities, with the rest invested in bonds). The higher the equity % the higher risk and the higher potential returns, so you need to decide which one is right for you but I would suggest the 100% version given the very long-term view.

You will also get the option for either income (inc) or accumulation (acc) units, again I would suggest you go for accumulation which rolls any income back into the fund automatically so you benefit from compounding.

Eco_Miser

george4064 wrote: »

A popular choice for beginner investors is to invest in a global index tracker fund, popular onces include Vanguard LifeStrategy, L&G Multi-Asset and BlackRock Consensus.

Strictly speaking these are multi-asset funds of funds, with the underlying funds being regional index tracker funds, and the proportions of each fund being decided by the fund manager.