£1000 investments

fimonkey

Aegis wrote: »

Did you have any sectors in mind, or were you just wanting to find something with a little risk?

Well after reading heaps on here and other sites, and also keeping an eye on the business sections of the broadsheets, I was thinking of putting the whole 1K into Invesco perpetual. At the moment I'm not confident enough with knowing what all the sectors are, what they do, how they're influenced etc etc so I'm not happy to buy individual sotcks and shares (though have opened a bullbearings virtual account to play with for the time being). I though that by putting 1K into a fund that has already diversified then someone else with that knowledge is taking care of it for me, and Investo perpetual gets good write ups in the press. Right or wrong?

See your later point about drip feeding however, good idea, though every time i put money into this will I be faced with charges?

fimonkey

jamesd wrote: »

fimonkey, see Ok then - How do I choose a S&S ISA to get an idea of what a sector allocation is and some of the mechanics of using stocks and shares ISAs and picking funds.

Don't put all of the money into say a China or Hong Kong fund. Those will bounce up and down by as much as 10% a day and are likely to put off a beginner.

Thanks James, I've read and re-read and read that thread again and again and again..... I'm starting to wake up some dormant brain cells for sure!

Aegis

fimonkey wrote: »

Well after reading heaps on here and other sites, and also keeping an eye on the business sections of the broadsheets, I was thinking of putting the whole 1K into Invesco perpetual.

Invesco Perpetual are an investment company rather than a fund (i.e. they manage a series of funds in various sectors). Their High Income fund is probably the best known of their products, and it's generally thought to be an excellent UK Equity fund. Certainly not a bad place to start, but you'd have to remember not to be too disheartened if the fund performs badly because the UK markets are volatile at the moment. In the long run it will probably do quite well.

At the moment I'm not confident enough with knowing what all the sectors are, what they do, how they're influenced etc etc so I'm not happy to buy individual sotcks and shares (though have opened a bullbearings virtual account to play with for the time being).

Sounds very sensible. However, you should definitely aim to have some appreciation of the sectors before picking a specific fund, as it will give you an idea of what you're investing in, if nothing else. For example, the UK Equity sector tends to be lower risk than a lot of other markets around the world, meaning that your capital is less likely to drop by large amounts. The downside of this is that the potential for high growth is less than with more risky sectors. The general rule is that the higher the risk, the greater the potential for reward. UK Equities would generally be in the medium risk category on a sector basis: not as safe as cash, bonds or gilts, but not as risky as foreign markets.

I though that by putting 1K into a fund that has already diversified then someone else with that knowledge is taking care of it for me, and Investo perpetual gets good write ups in the press. Right or wrong?

Pretty much the reason collective investments exist, in fact.

See your later point about drip feeding however, good idea, though every time i put money into this will I be faced with charges?

If you go through a discount broker, then hopefully not, no. Hargreaves Lansdown will set you up with a fund dealing or ISA fund dealing account where you can put as little as £50 a month into the fund of your choice (i.e. minimum of £50 per fund) with the initial charges removed for most of their funds, and the annual charges partially rebated too.

jamesd

What you might do instead is select three funds and set up a 50 a month payment into each. Then cancel once you've invested as much as you want to invest at 150 per month.

Invesco Perpetual High Income is medium risk and concentrated in the UK large companies area, the UK equity income sector specifically. To diversify away from just UK large companies and increase growth potential you might consider adding a global growth fund (perhaps Artemis Global Growth or similar) and an emerging Europe fund (perhaps Jupiter Emerging European Opportunities or similar).

fimonkey

Thanks SO MUCH for your help!! Off to 'Do my own research' now

Aegis

fimonkey wrote: »

Thanks SO MUCH for your help!! Off to 'Do my own research' now

Fantastic idea, now have some fun with it

jamesd

fimonkey, do your own research is true. I don't deliberately pick bad examples, but that's a different thing from the best ones for you or even the best in the sector. Those three are fine, but maybe not the best.