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  • FIRST POST
    • Fatbritabroad
    • By Fatbritabroad 6th Mar 18, 12:56 PM
    • 352Posts
    • 191Thanks
    Fatbritabroad
    1000 too small a sum to buy shares
    • #1
    • 6th Mar 18, 12:56 PM
    1000 too small a sum to buy shares 6th Mar 18 at 12:56 PM
    I've got a couple of thousand shortly coming out of my ratesetter account once the bonus kicks in

    As this is in my high risk portion of my portfolio I'm considering what to do with it.

    Choices are

    1) Put half of it in my ablrate p2p account in the portfolio loan. I'm thinking of opening a new ifisa with another provider in April to spread the risk. the other half would go into my s and s isa in a diversified fund or possibly just back in to my cash holding (this is currently 13k so is just over 6 months bills etc)

    2)keep invested with ratesetter just in their rolling account for easy access. Not sure if the 3% rate is worth it but it feels safer than ablrate it's one choice for an easy access isa in April that Id be willing to put a little more in (ablrate has 4k in it and am happy just investing interest and capital repayments now). I'm a hrt payer so am close to the psa at present so keen to shelter more in isas

    3) just put the lot into my vanguard s and s isa

    4) there are a couple of Individual shares I'm tempted to buy as I feel they are a good long term bet. Unsure whether 1000 is too low to consider buying individual shares? I accept the risk of buying individual business and this is money I could lose I'm just interested to see if they work out
    Accepting its personal preference what would you do?
Page 1
    • Alexland
    • By Alexland 6th Mar 18, 1:15 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    • #2
    • 6th Mar 18, 1:15 PM
    • #2
    • 6th Mar 18, 1:15 PM
    5) Invest it directly with an active manager who has credible performance history such as a Baillie Gifford Share Plan (for an investment trust such as Scottish Mortgage or Monks) or an Orbis general account?
    • ricky_v
    • By ricky_v 6th Mar 18, 1:16 PM
    • 302 Posts
    • 170 Thanks
    ricky_v
    • #3
    • 6th Mar 18, 1:16 PM
    • #3
    • 6th Mar 18, 1:16 PM
    If it's a UK company, consider X-O* for example charges 5.95 per trade, that's 0.595% in broker fees (don't forget 0.5% stamp duty) so 1.095% on 1000 bought. To sell would be another 5.95 (although the fee might go up in a few years) so the whole lot will cost 16.90 or 1.69% so it depends if you're happy with paying 1.69% in fees/taxes for to buy, hold and sell 1000 worth of shares.

    *other brokers are avaliable
    • MoneyGeoff
    • By MoneyGeoff 6th Mar 18, 2:24 PM
    • 103 Posts
    • 61 Thanks
    MoneyGeoff
    • #4
    • 6th Mar 18, 2:24 PM
    • #4
    • 6th Mar 18, 2:24 PM
    Assetz Capital quick access account pays 3.75% so I think it's better than RS rolling because of the higher rate and considerably less faff.
    • EdGasketTheSecond
    • By EdGasketTheSecond 6th Mar 18, 2:40 PM
    • 550 Posts
    • 303 Thanks
    EdGasketTheSecond
    • #5
    • 6th Mar 18, 2:40 PM
    • #5
    • 6th Mar 18, 2:40 PM
    1000 is fine for one lot of shares. I started buying shares at roughly 700 a deal back in the day and stamp was 2% then plus broker costs of 15
    • inflationbuster
    • By inflationbuster 6th Mar 18, 4:12 PM
    • 164 Posts
    • 45 Thanks
    inflationbuster
    • #6
    • 6th Mar 18, 4:12 PM
    • #6
    • 6th Mar 18, 4:12 PM
    4) If you're not too precious with your 1000 it's maybe something you can use to learn how to invest in stocks stick to FTSE100 or FTSE250 shares and don't venture outside such as FTSE350 or AIM. Ensure the company pays you a dividend too. There a plenty of value stocks out there just don't expect much return from 1000 i.e., investing the lot into say BT shares at current prices would only give you ~64 in dividends assuming said dividends stays flat
    • cashbackproblems
    • By cashbackproblems 6th Mar 18, 5:36 PM
    • 1,747 Posts
    • 682 Thanks
    cashbackproblems
    • #7
    • 6th Mar 18, 5:36 PM
    • #7
    • 6th Mar 18, 5:36 PM
    certainly isn't a too small amount, as mentioned you can buy funds free of charge e.g. HL or equities for 5/6.
    • Fatbritabroad
    • By Fatbritabroad 6th Mar 18, 7:14 PM
    • 352 Posts
    • 191 Thanks
    Fatbritabroad
    • #8
    • 6th Mar 18, 7:14 PM
    • #8
    • 6th Mar 18, 7:14 PM
    Thanks guys for the opinions
    • FatherAbraham
    • By FatherAbraham 6th Mar 18, 10:16 PM
    • 765 Posts
    • 588 Thanks
    FatherAbraham
    • #9
    • 6th Mar 18, 10:16 PM
    • #9
    • 6th Mar 18, 10:16 PM
    4) If you're not too precious with your 1000 it's maybe something you can use to learn how to invest in stocks stick to FTSE100 or FTSE250 shares and don't venture outside such as FTSE350 or AIM. 2
    Originally posted by inflationbuster
    The FTSE350 is composed of the FTSE100 and the FTSE250.
    • Dunroaming
    • By Dunroaming 7th Mar 18, 12:35 PM
    • 127 Posts
    • 364 Thanks
    Dunroaming
    Marstons shares are low at the moment(103.11).
    1000 will buy 960+ shares, so you qualify for a 20% discount card off Inns and food.
    Dividend is around 7%.
    Last edited by Dunroaming; 09-03-2018 at 3:14 PM.
    • grey gym sock
    • By grey gym sock 7th Mar 18, 4:34 PM
    • 4,333 Posts
    • 3,863 Thanks
    grey gym sock
    Marstons shares are low at the moment.
    1000 will buy 960+ shares, so you qualify for a 20% discount card off Inns and food.
    Dividend is around 7%.
    Originally posted by Dunroaming
    could be a value trap. they're low, in the sense that they've been higher. but that doesn't mean they won't go lower still. a 7% yield implies that there are serious doubts about whether they can keep paying out that level of dividend. picking a good individual share to invest in is not nearly as simple as picking something that's been higher and has a high yield. and most of us (me included) are probably wasting our time trying to pick individual shares at all.

    in general, i think 1000 in a single share is a bit marginal. i would prefer 2000 as a minimum. 1000 in a fund would be fine.
    • pearl123
    • By pearl123 7th Mar 18, 5:20 PM
    • 1,378 Posts
    • 2,064 Thanks
    pearl123
    If it's a UK company, consider X-O* for example charges 5.95 per trade, that's 0.595% in broker fees (don't forget 0.5% stamp duty) so 1.095% on 1000 bought. To sell would be another 5.95 (although the fee might go up in a few years) so the whole lot will cost 16.90 or 1.69% so it depends if you're happy with paying 1.69% in fees/taxes for to buy, hold and sell 1000 worth of shares.

    *other brokers are avaliable
    Originally posted by ricky_v
    x-o is very simple to use.
    • Fatbritabroad
    • By Fatbritabroad 7th Mar 18, 7:47 PM
    • 352 Posts
    • 191 Thanks
    Fatbritabroad
    Thanks guys I think I'm going to split it ablrate and my s and ISA in my fund. Slow and steady !!!55357;!!!56841;
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