We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Investing - Where to start?

Options
13

Comments

  • LL_USS
    LL_USS Posts: 325 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    Thanks so much again @eskbanker and @Hoenir.
    I see about global equity already including some S&P and FTSE (whilst S&P/ FTSE already basket funds themselves) and thus diversification achieved already.
    Very true my case should look into "time in the market" as it is a long period till I can withdraw LISAs. Also the market moves so fast. My fund is still on the way to Dodl not even in yet, and the market can change in just a day or couple of days, and once we order the purchase, it still not the exchange right then. I get it, even if i try to "time" when to enter, the market moves fast so there's no point, just buy as when the money is ready.
    So I'll leave enough cash to pay for fees, and just choose global equity and perhaps one more that is not geographical market based.
  • LL_USS
    LL_USS Posts: 325 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    edited 12 April at 2:00PM
    @kempiejon you mentioned that buying gilts is an option if I want some long-term investment with low risks. This sum of money I am considering investing is with Dodl (LISA) and I am told there are less investment options than ISA platforms - still I think there are plenty. They have one option under Bonds - iShares GiltTrak index fund. Yet I am thinking I already have savings that I put aside to get immediate use of/ or 3 years fixed that I can take out at some loss of interest, then perhaps it's still better to invest in stocks, which is higher risk rather than bonds/ gilts but I can bear that risk, speading it over a decade. I've seen 3 years' bond top deals only slightly higher than 3 years fixed cash ISAs so I've used the latter instead for my ISAs. General savings I make sure the interests total less than my yearly allowance to still be tax free.
    @ others: The market is fluctuating too much at the moment (like SP500 so different just between 9 and 10 April, with the delay in the purchase request and the purchase going through, I feel it's too much for a new investor). So I am still wailing. I feel missing out (of a good chance) is more bearable than a shock seeing something not planned for right away as I first start investing. The uninvested fund in Dodl still gains okay cash interest for now. I am laughing at myself thinking may be a couple of weeks/ months on I am still reporting "sitting at the side" :#
    The investment options given tend to only include the name of the fund, and the % as fee. A friend of mine has just told me I shouldn't just, for e.g. choose SP500 or Global equity as they are recommended by others - I must read the performance report over the years of each fund that I would like to consider. But performance report is only for the past and also if I invest a long period of 10-15 years then things will change too, right?
    Do others read performance reports of their funds before investing and check again often?
  • InvesterJones
    InvesterJones Posts: 1,217 Forumite
    1,000 Posts Third Anniversary Name Dropper
    LL_USS said:

    The investment options given tend to only include the name of the fund, and the % as fee. A friend of mine has just told me I shouldn't just, for e.g. choose SP500 or Global equity as they are recommended by others - I must read the performance report over the years of each fund that I would like to consider. But performance report is only for the past and also if I invest a long period of 10-15 years then things will change too, right?
    Do others read performance reports of their funds before investing and check again often?
    It's actually quite hard to make predictions using the performance reports, as you've realised - if a fund has done well in the past, does that mean it's now expensive and will drop in performance compared to others as it reverts to the mean? I.E. the performance report alone doesn't really help - I use them to compare funds and get an idea of what sorts of conditions does the fund do well vs do badly - it can be a quick way of assessing the make up of the fund and risk, and is a good way of helping you find diversity by picking funds that have performed differently in the past - if you're picking several funds rather than keeping it simple with a single global for example.

    As for checking again often.. no. I mean, yes I do more than I should, but if you've invested for 10 years then it's better not to, or you might be tempted to make changes before your 10 years.
  • kempiejon
    kempiejon Posts: 832 Forumite
    Part of the Furniture 500 Posts Name Dropper
    When I used to research individual shares I would pour over accounts and reports, and had template home built spreadsheets for analysis. These days I can check out online but I am less focused on share picking. When I buy ETFs to track indices the numbers are tracking error and costs. That's about the limit of my research on those products.
  • LL_USS
    LL_USS Posts: 325 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    @kempiejon thank you. I am still googling for very basic things like who's this Vanguard guy ;-), who else runs global equity fund... I try to use some common sense (knowing I don't have great common sense anyway) for questions like if it is global equity then we should think it's not growing very fast but it should be steady unless there's a global-scale catastrophe..... If it's 10-15 years investment and I don't want to keep checking how the fund is doing then best not to have shares in specific companies that we don't know whether they go burst at some point.....
  • InvesterJones
    InvesterJones Posts: 1,217 Forumite
    1,000 Posts Third Anniversary Name Dropper
    LL_USS said:
    @kempiejon thank you. I am still googling for very basic things like who's this Vanguard guy ;-), who else runs global equity fund... I try to use some common sense (knowing I don't have great common sense anyway) for questions like if it is global equity then we should think it's not growing very fast but it should be steady unless there's a global-scale catastrophe..... If it's 10-15 years investment and I don't want to keep checking how the fund is doing then best not to have shares in specific companies that we don't know whether they go burst at some point.....
    There are lots of global equity funds available - for the most part they follow a global index, of which there are several available MSCI vs FTSE, developed countries only or developed + emerging.. but after all that they all perform pretty closely together. I don't agree with your assertion that global equity doesn't grow fast - it's been one of the fastest growing investments in recent years - but the trick is rather than being the absolute fastest, which changes from year to year, by holding everything you're somewhat covered when one thing is fast one year, and another thing the next.
  • LL_USS
    LL_USS Posts: 325 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    @InvesterJones I thought global equity wouldn't grow as dramatically compared to some hypes, for e.g. Tech coms, AI... during the hypes but it wouldn't fall dramatically either if something turns out to be hype after (like AI could be another dot.com in some people's opinion, though I don't think so).
  • InvesterJones
    InvesterJones Posts: 1,217 Forumite
    1,000 Posts Third Anniversary Name Dropper
    LL_USS said:
    @InvesterJones I thought global equity wouldn't grow as dramatically compared to some hypes, for e.g. Tech coms, AI... during the hypes but it wouldn't fall dramatically either if something turns out to be hype after (like AI could be another dot.com in some people's opinion, though I don't think so).
    Like I said, it won't be the absolute fastest - but the thing that is absolute fastest changes from year to year. This year for example tech/coms has not performed as well as global equities.

  • LL_USS
    LL_USS Posts: 325 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    edited 12 April at 9:51PM
    @InvesterJones indeed. I am still planning to buy global equity from my Dodl LISAs (first time buyer of S&S :-).  Just waiting a bit longer till my nerve can take the recent fluctuations of the market.
  • masonic
    masonic Posts: 27,250 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    LL_USS said:
    @InvesterJones indeed. I am still planning to buy global equity from my Dodl LISAs (first time buyer of S&S :-).  Just waiting a bit longer till my nerve can take the recent fluctuation of the market.
    I suspect, as Trump continues to back down, now with significant exemptions, that fluctuations are likely to be in an upward direction on Monday. However, at any time the position could completely reverse, given recent precedent.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.