Stocks and Shares ISA

Larkspur4

Hi All,
I'm new to S&S Isa's and whilst I appreciate it's probably something I should have self taught a bit more in before I dived right in, I didn't I just delved right in! I have opened an account with Hargreaves Landsdowne. Small amounts of cash to begin with.
So £500 into a JP Morgan emerging markets fund-class B accumulation
£500 into Legal and General UK 100 index Trust. Class C accumulation.
And I pay £25 per month which I put into Taylor Wimpey shares.
I'm now about ready to invest another £500 and I am trying not to do it as blind as before! 
What do you look at when you are researching a company? I read the research on Taylor Wimpey that Landsdowne provided and I figured the housing market shares are probably really low just now to buy and will peak again in the future and they are a strong company. 

I'm thinking of investing this time in a fund that pays dividends and paying into it each month. 

Just looking in layman's terms to see what to look at in companies before investing. And yes, I should have learned all this before I invested but it is what it is!!! 

dunstonh

So £500 into a JP Morgan emerging markets fund-class B accumulation
£500 into Legal and General UK 100 index Trust. Class C accumulation.

Those funds are single sector funds.  They invest in just emerging markets and UK Large cap.      They are designed to be held in a wider portfolio funds and not in isolation. e.g. a fund for US equity, European Eq, Japan eq, asia eq etc etc.

At the moment, you have 50% in the very high risk emerging markets and 50% in the awful FTSE100.

And I pay £25 per month which I put into Taylor Wimpey shares.

I dont know what HL's dealing charges are but that is probably not a good move.

What do you look at when you are researching a company?

You will find most here do not invest in shares.   It requires too much reading and understanding of individual companies.   Most use funds.

I'm thinking of investing this time in a fund that pays dividends and paying into it each month. 

The funds you have pay dividends.  You have just chosen the accumulation version.

Most new investors with small amounts should stick to multi-asset funds.

DrSyn

I think that until you gain more knowledge of investing, you would be better off investing in a single Global Multi Asset Fund. After you understand more, then branch out if you think you need to.
https://www.kroijer.com/

Eyeful

Your post gives me the impression that you may not have given much thought to the construction your portfolio or the risk attached to it. Consider these both carefully. 

grumiofoundation

And I pay £25 per month which I put into Taylor Wimpey shares.

Believe HL charges £11.95 to buy shares so if you are buying £25 every month you are spending £25 to buy £13 worth of shares. 
So these have to double in value for you to even break even on paper. 


As above you are investing just in Emerging markets and the 100 biggest companies listed in the UK, not investing in the US, japan, other companies in the UK etc

As suggested look into multi assest funds, or if you want 100% equities an all-world index fund.

Alexland

grumiofoundation said:

Believe HL charges £11.95 to buy shares so if you are buying £25 every month you are spending £25 to buy £13 worth of shares. So these have to double in value for you to even break even on paper.

They are probably using HL's £1.50 direct debit regular investment into FTSE350 companies and selected IT/ETFs.

grumiofoundation

Alexland said:

grumiofoundation said:

Believe HL charges £11.95 to buy shares so if you are buying £25 every month you are spending £25 to buy £13 worth of shares. So these have to double in value for you to even break even on paper.

They are probably using HL's £1.50 direct debit regular investment into FTSE350 companies and selected IT/ETFs.

Ah (most likely) scrap my earlier comment then, only need a 6.5% gain to break even then. 

Alexland

grumiofoundation said:

Ah (most likely) scrap my earlier comment then, only need a 6.5% gain to break even then. 

Don't forget stamp duty and of course the full amount wouldn't be invested because HL don't support fractional shares. TBH the whole arrangement is nuts. A diversified global tracker or multi asset fund on a cheaper platform would be more suitable for these amounts of money or maybe if investing for small but increasing amounts of income a good investment trust.

dunstonh

grumiofoundation said:

Alexland said:

grumiofoundation said:

Believe HL charges £11.95 to buy shares so if you are buying £25 every month you are spending £25 to buy £13 worth of shares. So these have to double in value for you to even break even on paper.

They are probably using HL's £1.50 direct debit regular investment into FTSE350 companies and selected IT/ETFs.

Ah (most likely) scrap my earlier comment then, only need a 6.5% gain to break even then. 

And dont forget the dealing charges when selling.  That is harder to equate due to investment returns but most likely wipes out another year or twos returns.

Larkspur4

Thank you to all of you for taking the time to respond to me.
I am just learning ( clearly!!) about investment and what to do with my money and its a minefield ( if you have a cardiac arrest I could sort you out!  Not wishing that on any of you!!) Do any of you have any books you would recommend? Is there like an 
 "investments for dummies" type guide?"
Any questions I have next are not me being challenging, I am  just trying to understand:

At the moment, you have 50% in the very high risk emerging markets and 50% in the awful FTSE100.

I thought this was the best way to do it, some risk , some not?

You will find most here do not invest in shares.   It requires too much reading and understanding of individual companies.   Most use funds

SO best to stick with funds, ok, got that. So the £25 DD i give to H&L I can just ask them to put that into one of my funds rather than into Taylor Wimpey shares?

The funds you have pay dividends.  You have just chosen the accumulation version.

Ah, I think I did some reading on this before I chose that option.. this means  the dividend will automatically be reinvested into the fund?  What do you guys think is best accumulation funds or income funds? Income funds when they pay dividends I would probably chose just to re-invest anyways? I suppose it would give me the freedom to determine where I reinvest?

think that until you gain more knowledge of investing, you would be better off investing in a single Global Multi Asset Fund. After you understand more, then branch out if you think you need to.

Absolutely taking that on board. Thanks for the website also.

Thank you so much again! It is a learning curve and a new venture for me. The only way we can learn is through reading ( I am struggling to understand a lot of the jargon!) chatting to people with experience ( you guys) and experience!

dunstonh

I thought this was the best way to do it, some risk , some not?

No. You could have done far worse but to put it in perspective, had that been recommended by an IFA, then you would be looking at a missale.

SO best to stick with funds, ok, got that. So the £25 DD i give to H&L I can just ask them to put that into one of my funds rather than into Taylor Wimpey shares?

yes.

Ah, I think I did some reading on this before I chose that option.. this means  the dividend will automatically be reinvested into the fund?  What do you guys think is best accumulation funds or income funds? Income funds when they pay dividends I would probably chose just to re-invest anyways? I suppose it would give me the freedom to determine where I reinvest?

There is no difference in the return in Acc units and Inc units with the income reinvested.    I nearly always use inc units as we use the income to reinvest into the portfolio using the target weightings and not necessarily the fund the dividends came from.   You are not at the stage to be running a portfolio yet.   So, I wouldn't be too hung up on Inc or Acc.