New to investments - monthly payments

da4

polagon wrote: »

Is this money going to be invested over a long time? And with no plans to stop or withdraw it?
I personally invest in VL80 with Cavendish Online. Which is using Fidelity's platform. It's cheap, easy to use and best with these small monthly payments you don't think too much about it.

VL as you can easily read about on here or through a simple Google search is a decent enough option for you guys. And depending on time and risk averse you can go up and down the scale 20% to 100% equity allocation. But do pick the acc fund version.

We would be leaving there for 10 years + unless we had a total emergency that our other savings couldn't cover.

polagon

Cool. Well VL60/80/100 is easily recommended then. Easy option to start with until you guys become more comfortably looking at alternatives.

da4

polagon wrote: »

Cool. Well VL60/80/100 is easily recommended then. Easy option to start with until you guys become more comfortably looking at alternatives.

Sounds stupid but should we look for two funds? Hedging bets sort of thing?

Zola.

https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B4PQW15&gclid=CMe-otba7NECFeQp0wodeRUMzA

look at the composition breakdown on the right of this page

Eco_Miser

The VLS funds are designed to be completely hands off. Once you've put your money in, you don't need to do anything else.

See the thread at https://forums.moneysavingexpert.com/discussion/5593339 and numerous other threads about passive investing, also the Monevator articles on passive investing.

Dird

Put it all in Fidelity Index World Fund instead. It has outperformed LS 100% (presumably because the UK is pretty !!!!) every year which has outperformed LS 80% (presumably because bonds are pretty !!!!) & it's charge is also only 0.13% vs LS100% 0.22%. Using Cavendish your total cost would be 0.38% (0.25 platform + 0.13)
https://www.fidelity.co.uk/investor/funds/find-funds/chart-compare/default.page

Use Cavendish. Don't waste your time with bonds until you're close to retirement or if it's going in an ISA then move it to cash when the time to use it is getting close

StellaN

Dird wrote: »

Put it all in Fidelity Index World Fund instead. It has outperformed LS 100% (presumably because the UK is pretty !!!!) every year which has outperformed LS 80% (presumably because bonds are pretty !!!!) & it's charge is also only 0.13% vs LS100% 0.22%. Using Cavendish your total cost would be 0.38% (0.25 platform + 0.13)
https://www.fidelity.co.uk/investor/funds/find-funds/chart-compare/default.page

Use Cavendish. Don't waste your time with bonds until you're close to retirement or if it's going in an ISA then move it to cash when the time to use it is getting close

Is the Fidelity Index World Fund rather high risk for someone new to investing such as the OP? It is 100 per cent equities so maybe the OP would be better suited to a multi asset fund such as the L&G Multi index 4?

AnotherJoe

StellaN wrote: »

Is the Fidelity Index World Fund rather high risk for someone new to investing such as the OP? It is 100 per cent equities so maybe the OP would be better suited to a multi asset fund such as the L&G Multi index 4?

This is 10+ years and with respect a small amount, £2k initial plus £1k a year.
No point being too cautious with that much or you might as well just find some other savings accounts.

Expect it to fluctuate, expect it to be worth less at some point than you've put in, stick with it.

StellaN

AnotherJoe wrote: »

This is 10+ years and with respect a small amount, £2k initial plus £1k a year.
No point being too cautious with that much or you might as well just find some other savings accounts.

Expect it to fluctuate, expect it to be worth less at some point than you've put in, stick with it.

Fair comment, I suppose it is a relatively small amount of money.

grey_gym_sock

Dird wrote: »

Put it all in Fidelity Index World Fund instead. It has outperformed LS 100% (presumably because the UK is pretty !!!!) every year

this approach is performance chasing, i.e. picking whatever's done well recently.

it's not a good way to pick funds, because every fund goes through better and worse periods, and you are more likely to be buying into a fund which has had a good period and is just about to have a bad period than to be buying something will keep out-performing.

indeed, 1 of way that private investors can get worse results than the funds they invest in is by switching funds every few years, from a fund that's had a bad period and is about to have a good 1, into a fund that's had a good period and is about to have a bad 1.