Alternatively, it could be a FTSE 100 tracker, where the fund simply invests in the UK's 100 biggest companies, and therefore is much more mainstream.
You can also invest in what are known as 'funds of funds'. There's a lower risk as you invest in a fund which itself is invested in lots of other funds, but you'll pay a higher price for the management of the various funds.
Investing in an ISA should ALWAYS be your first port of call
Don't put all your eggs in one basket. Try to diversify as much as you can to lower your risk exposure, ie, invest in different companies, industries and regions.
Drip feeding in money over time reduces risk
Instead, you should invest on a regular basis - in investment lingo this is called 'drip-feeding' - to smooth out any ups and downs.
Superscrooge wrote: »
I think your comments on HL platform charge (which I have pasted below) are somewhat misleadingEstablished platform Hargreaves Lansdown has a good reputation for service, it's often been given bad press for its high charges, however this cost will be minor on smaller portfolios. So if you want the confidence of investing with a reputable platform and know you won't be investing a large amount of money, it may be a good option for you.
However, if you know you're going to have a much larger portfolio, you'd need to weigh up whether you're willing to pay a high premium for its service and guidance. The only time it pays off is when you have a really large portfolio, as £2m+ for example wipes the platform charge.
This creates the impression that if your portfolio is greater than £2Million the whole platform charge is wiped and there is noting to pay, whereas (if my understanding of HL charge structure is correct) you still pay the platform charge on the first £2M. The only benefit is that there is no further charge on any funds over £2M.
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