Fractional Shares

masonic

I would suggest 10 would be a bare minimum if you want to be diversified. Buying a fund would be simpler and you'd be able to spread around many more companies and cover more geographic regions. Which fund(s) you choose would be dependent on your circumstances and risk tolerance, but a popular choice among novice investors is a multi-asset fund which contains a mixture of global equities and bonds, and sometimes property and other alternative assets, some examples of which are Vanguard LifeStrategy, HSBC Global Strategy, L&G Multi-index, Blackrock Mymap, etc. Each has different versions for different levels of risk.

Exodi

LightKnow said:

I do currently have fund but wanted to add either one more or was considering pooling shares together.


I understand it will have it risks and I gave it a little run but am still sitting at a loss lol even though it not much and haven't really ran it long. Tbh the figures don't really tally up

There alot valid points been made by everyone. And it seems Tracker funds is step in direction but If. I continued in fractional shares :   am guessing To level out my risk I need like 5 to 10 different stocks ?

Also any recommendations on tracker funds ?

I think the fractional shares thing is a red herring. You lose the same money buying 1 share of AMZN, or 10x 10% shares of AMZN. The only reasons you might consider fractional shares are affordability.

Also, 'levelling out risk' by investing in a specific number of stocks.

If all 10 investments are the same asset class, in the same sector, in the same market, then you're not diversifying.

Investing in Apple, Microsoft, Amazon, Google and Tesla - would put all of your eggs virtually in one basket and leave you at the mercy of US fiscal policy.

That's why people generally recommend index funds - it's easier to buy (for example) a US equity fund, a Europe equity fund and a world equity fund. You're essentially doing fractional shares across thousands of companies, instead of a handful.

lozzy1965

Yes, you seem to be making the same mistake people make when they think buying 'penny shares' is a good idea.  "If I buy a share for 1p and it goes up by only 1p then I have doubled my money!"  But it is the percentage rise/fall that is important vs the amount of money you have invested - not the number of shares you have in the company.  For a 1p share to go up to 2p the underlying company has to rise in value by 100%. 

LightKnow

Thanks everybody. 

😅 There few points well fair few that has been pointed out which pretty much summed my attention for fractional shares 😅 and reading over it from others perspective helps! Glad I Asked !!! This stopped me from making a impulsive mess 

I will take the advices given and Stick with funds. Thanks for suggestions on funds they look good as well it gives me a starting point. 

 

Thanks 😊