Suggestions Needed for Investing 20K S&S ISA, Is it right time to start investing?

Another_Saver

mazibee said:

Another_Saver said:

Is it a right time?
Always
Is your idea sensible?
Your post indicates you're newish to investing and suggesting using half your money to buy individual shares simply because they're trading at 52 week lows.
Just looking at the price is not investing, Centrica has been trading at 52 week lows for several years now.
The same goes for buying something because "it's been doing well lately".
The recent price performance of a stock or fund is perhaps the worst indicator of its future performance.
As I said in another post lately, looking at charts is about as useful to serious investors as horoscopes.
Personally I'm an avid indexer, but the only shares I have ever held are Tesla (now down to less than £1k) and Berkshire Hathaway.
If I were forced to pick my own stocks, aside from those two, this is my shortlist, this has nothing to do with the current price, these are just businesses I like that I would probably end up buying if index funds weren't around, because of the management, financials, whether or not I can understand the business well enough, and my opinion of the prospects. Looking at the price comes second to looking at the business.
Consumer: U, RB, BATS, IMP, DGE, PZC, BAG, BVIC, BME, PFD, MKS, 
Financials: DL, MONY, EXPN, LSE, 
Industrials: BAE, 
Utilities: NG, UU
Other internationals besides BRK.B and TSLA: IRM.

If you want to try systemically buying what is "low" or cheap, you could use a value ETF like VVAL, or a yield ETF like VHYL (iShares and most fund houses have similar products available).

That said, if the other £10k is just to play with them go ahead.

@Another_Saver thanks for our time and reply.

Yes you are 100% right,  I am new to investing, and with the money sitting in  saving account,  I need to invest and after  discussing with the wife thought to better invest.

You are right first one need to look at the business and then at  the current price of the share.

I am getting more inclined towards passive investing in the multi asset funds, but at the same time I also plan to buy selective shares of some good companies and keep them for a 10-15 years.

I prefer high dividend yielding shares that have not missed the dividends previously. Any idea about these?

You could use a filter such as the AJ Bell dividend dashboard which is showing which co's have made Divi cuts, or for a global etf that behaves more or less like a vanilla global index fund but systematically picks the high dividend payers you could go with VHYL or an iShares or other fund house equivalent. Yield and value were lagging the market before Covid and have done crap through the pandemic, there is some research that yield and value tend to outperform over the long run but arguably markets have become more efficient so maybe we shouldn't expect that to continue in future, but that would fit with your idea of buying what's low. I just don't think buying individual stocks because they're low is sensible investing.

mazibee

Another_Saver said:

mazibee said:

Another_Saver said:

Is it a right time?
Always
Is your idea sensible?
Your post indicates you're newish to investing and suggesting using half your money to buy individual shares simply because they're trading at 52 week lows.
Just looking at the price is not investing, Centrica has been trading at 52 week lows for several years now.
The same goes for buying something because "it's been doing well lately".
The recent price performance of a stock or fund is perhaps the worst indicator of its future performance.
As I said in another post lately, looking at charts is about as useful to serious investors as horoscopes.
Personally I'm an avid indexer, but the only shares I have ever held are Tesla (now down to less than £1k) and Berkshire Hathaway.
If I were forced to pick my own stocks, aside from those two, this is my shortlist, this has nothing to do with the current price, these are just businesses I like that I would probably end up buying if index funds weren't around, because of the management, financials, whether or not I can understand the business well enough, and my opinion of the prospects. Looking at the price comes second to looking at the business.
Consumer: U, RB, BATS, IMP, DGE, PZC, BAG, BVIC, BME, PFD, MKS, 
Financials: DL, MONY, EXPN, LSE, 
Industrials: BAE, 
Utilities: NG, UU
Other internationals besides BRK.B and TSLA: IRM.

If you want to try systemically buying what is "low" or cheap, you could use a value ETF like VVAL, or a yield ETF like VHYL (iShares and most fund houses have similar products available).

That said, if the other £10k is just to play with them go ahead.

@Another_Saver thanks for our time and reply.

Yes you are 100% right,  I am new to investing, and with the money sitting in  saving account,  I need to invest and after  discussing with the wife thought to better invest.

You are right first one need to look at the business and then at  the current price of the share.

I am getting more inclined towards passive investing in the multi asset funds, but at the same time I also plan to buy selective shares of some good companies and keep them for a 10-15 years.

I prefer high dividend yielding shares that have not missed the dividends previously. Any idea about these?

You could use a filter such as the AJ Bell dividend dashboard which is showing which co's have made Divi cuts, or for a global etf that behaves more or less like a vanilla global index fund but systematically picks the high dividend payers you could go with VHYL or an iShares or other fund house equivalent. Yield and value were lagging the market before Covid and have done crap through the pandemic, there is some research that yield and value tend to outperform over the long run but arguably markets have become more efficient so maybe we shouldn't expect that to continue in future, but that would fit with your idea of buying what's low. I just don't think buying individual stocks because they're low is sensible investing.

Thanks @Another_Saver

I will look at the AJ Bell dividend dashboard to screen out few shares that have constantly paying dividend, without any cut and are hovering close to 52W lows.

csgohan4

https://monevator.com/compare-uk-cheapest-online-brokers/

has an article on which platform according to cost, HL is expensive for what it is, may suit you though. 

MSCI and FTSE are different indices with subtle changes between them, personal preference

bare in mind one is a fund and the other is a ETF and the fund is slightly more expensive. 

badger09

I don't want to go over what has already been said, but the £8.95 dealing charge you quote applies only if you do 10 - 19 buy/sell in a month. Otherwise the charge is £11.95.

IMHO, an inexperienced investor should not be making that many trades. In fact, few investors should be making that many trades on a regular basis.

mazibee

badger09 said:

I don't want to go over what has already been said, but the £8.95 dealing charge you quote applies only if you do 10 - 19 buy/sell in a month. Otherwise the charge is £11.95.

IMHO, an inexperienced investor should not be making that many trades. In fact, few investors should be making that many trades on a regular basis.

Sorry my bad, you are rights its £11.95 per trade  for trades less than 10.and the next month it will be reduced to £8.95

csgohan4 said:

https://monevator.com/compare-uk-cheapest-online-brokers/

has an article on which platform according to cost, HL is expensive for what it is, may suit you though. 
MSCI and FTSE are different indices with subtle changes between them, personal preference
bare in mind one is a fund and the other is a ETF and the fund is slightly more expensive. 

Thanks @csgohan4 I will check it.

Any suggestions which is the best reliable low cost platform for investing in funds

ColdIron

mazibee said:

csgohan4 said:

if your investing in shares, have a clear strategy and ask yourself why they would be a good punt. Investing in individual shares is more risky and less diverse in a sense as your putting more money into one company/ sector. 

If all my money was in IAG before covid for example, I'd be having a heart attack  by now.  

however there are some good deals to be had, you need to look for them and see if it fits your risk profile and whether it would be a short or medium/long term investment.

Investing in index trackers at this time, will more than likely guarantee growth in the next 10 years with some of them already dipped a little, like HMWO, VHVG , VWRL e.t.c. so you will make more profit in the long run. 

HSBC ETFs Plc MSCI World ETF GBP (HMWO) 

and comparing with

HSBC FTSE All World Index Class C - Accumulation

Please can you tell me what is the difference between these two and which one should be preferred and any advantages disadvantages for each of them.

The main difference is that they track different indexes. Another is that one is an ETF and the other a fund (OEIC). HL have different charging structures for these

The HSBC ETF tracks the MSCI World Index which covers 23 developed countries but no emerging markets

The HSBC fund tracks the FTSE All World Index which covers both the developed world and emerging markets such as China, India, South Korea etc

Click the links to see the factsheets

Thrugelmir

mazibee said:

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows

Don't buy individual shares just because they are sitting at 52 week lows. Stick to multi asset funds for a while. If you want to experiment use Fantasy Portfolios. Remember to build in buying costs including stamp duty to give real returns. Before buying a share write down 5 reasons for doing so. Justify the purchase to yourself. 

mazibee

Thrugelmir said:

mazibee said:

Any any comments on building a portfilio from these shares  to take advantage as most of them are trading close to 52W Lows

Don't buy individual shares just because they are sitting at 52 week lows. Stick to multi asset funds for a while. If you want to experiment use Fantasy Portfolios. Remember to build in buying costs including stamp duty to give real returns. Before buying a share write down 5 reasons for doing so. Justify the purchase to yourself. 

Thanks @Thrugelmir for your reply.

I am now more  inclined towards Multi asset funds.

Any suggestions to build portfolio for 3/4 multi asset fund.

ColdIron said:

mazibee said:

csgohan4 said:

if your investing in shares, have a clear strategy and ask yourself why they would be a good punt. Investing in individual shares is more risky and less diverse in a sense as your putting more money into one company/ sector. 

If all my money was in IAG before covid for example, I'd be having a heart attack  by now.  

however there are some good deals to be had, you need to look for them and see if it fits your risk profile and whether it would be a short or medium/long term investment.

Investing in index trackers at this time, will more than likely guarantee growth in the next 10 years with some of them already dipped a little, like HMWO, VHVG , VWRL e.t.c. so you will make more profit in the long run. 

HSBC ETFs Plc MSCI World ETF GBP (HMWO) 

and comparing with

HSBC FTSE All World Index Class C - Accumulation

Please can you tell me what is the difference between these two and which one should be preferred and any advantages disadvantages for each of them.

The main difference is that they track different indexes. Another is that one is an ETF and the other a fund (OEIC). HL have different charging structures for these

The HSBC ETF tracks the MSCI World Index which covers 23 developed countries but no emerging markets

The HSBC fund tracks the FTSE All World Index which covers both the developed world and emerging markets such as China, India, South Korea etc

Click the links to see the factsheets

Thanks @ColdIron for your reply,

I will look at the fact sheets

eskbanker

mazibee said:

I am now more  inclined towards Multi asset funds.

Any suggestions to build portfolio for 3/4 multi asset fund.

Why would you want multiple multi-asset funds?  Better to identify one that meets your investment objectives, once those are clear....

mazibee

eskbanker said:

mazibee said:

I am now more  inclined towards Multi asset funds.

Any suggestions to build portfolio for 3/4 multi asset fund.

Why would you want multiple multi-asset funds?  Better to identify one that meets your investment objectives, once those are clear....

Please can you or someone list few from different multi assets funds to choose from?

Also when I was check BG and Royal of London , return varies and top 10 holdings country wise varies , I think that may  the reason for the variation in the returns.

Investment objectives are long term growth, I am willing to take risk for at least 10 years