Investments for Beginners

TheJasperCo · Feb 16, 2017

Where - if at all - do you invest your money? The world of stocks, shares, bonds, ForEx, commodities, property and mutual funds is all a bit daunting.

I got a letter from my well-known building society (hint: it begins with "N" and ends in "ationwide"), telling me that the interest on my ISA is going to fall from 0.75% to half a percent next month. Fantastic. For me, that's the final straw. Where do you put your money to ensure a decent return, in the long-term? What would people recommend for a newbie - like me - to cash in regular monthly deposits?

I have done research, but many blogs and links are either out of date or US-focussed, or have an assumed knowledge that the reader will know what a global equity income strategy means.

Thank ye.

Justice · Feb 16, 2017

Not in Forex that's for sure unless you've studied for a few years.

vegster · Feb 16, 2017

I put a some of my divorce/redundancy cash in to a share ISA thing about 2008 and it has doubled in that time. However, I would not risk doing it at this point in time as the collywobbles over Brexit could send and new investment tumbling...... property is your best bet.

GreersElbow · Feb 16, 2017

Forex isn't an investment, I'd avoid it.

What's your objectives, time horizon, ability and tolerance for risk?

I'm an investment banking student so have a decent understanding but all of above need to be clarified before advice is offered.

Mr Bronson · Feb 16, 2017

The first questions to ask yourself is how long you want to invest for and what outcome you want from it. Are you investing for retirement? House deposit?

Think about your appetite for risk as well. How would you feel if you invested £1000 and in the first six months lost £200. A 20% fall in global stock markets is entirely possible.

Eric Potts · Feb 16, 2017

Put everything on black .........no , red ..................black ..................Oh bugger .

TheJasperCo · Feb 16, 2017

GreersElbow said:
Forex isn't an investment, I'd avoid it.

What's your objectives, time horizon, ability and tolerance for risk?

I'm an investment banking student so have a decent understanding but all of above need to be clarified before advice is offered.

Long-term growth, low-to moderate risk, starting with a smallish lump sum then adding to it each month. Investopedia suggests either an ETF (whatever that is) or a mutual fund index, but Citizens' Advice website suggests mutual funds are risky if inflation stays low??

GreersElbow · Feb 16, 2017

TheJasperCo said:
Long-term growth, low-to moderate risk, starting with a smallish lump sum then adding to it each month. Investopedia suggests either an ETF (whatever that is) or a mutual fund index, but Citizens' Advice website suggests mutual funds are risky if inflation stays low??

Mutual funds risky if inflation is low?

Unusual, that depends entirely on asset allocation...

I would look at bond ISAs especially if you're willingness and ability to take risk is low.

Look at Aberdeen Asset Management. They are a form of ETF; ETF is effectively a portfolio which tracks a particular index. But they are moderately risky.

B-right-on · Feb 16, 2017

I've dabbled in Stock and Shares for years. It really is a hit and miss, I'm no expert at all but have done ok, menaing I've not lost my shirt but not made much. There are a load of "investment vehicles" which companies buy and sell stocks on your behalf. The problem with these is that the people buying and selling arent generally very good at reading the marklet and so many of them havent done that well and so you get these underperforming pensions etc... plus they get commision on the buyng and selling so the mroe they mess about, potentially the more they make. Not all but have heard about this.

My Penion is a couple of BTL properies I bought many years ago, being self employed I dont have a 'proper' one. Depends on how much cash you have, I'd invest in property if you can. Simple supply and demand means that its likely to keep on rising in the longer term.

Springal · Feb 16, 2017

I've been using The Share Centre stocks and shares ISA last few years. Did 'Adventurous' for 16/17 and it has grown by 13% since April which is decent. It's all done for you, no management fees etc.

GreersElbow · Feb 16, 2017

Springal said:
I've been using The Share Centre stocks and shares ISA last few years. Did 'Adventurous' for 16/17 and it has grown by 13% since April which is decent. It's all done for you, no management fees etc.

That's not a bad return, does it specify allocation? I'd be intrigued to see how they've allocated it.
St James Wealth management had similar returns with an interesting allocation.

Springal · Feb 16, 2017

GreersElbow said:
That's not a bad return, does it specify allocation? I'd be intrigued to see how they've allocated it.
St James Wealth management had similar returns with an interesting allocation.

https://www.share.com/find-investments/funds/funds-of-funds/sf-adventurous/

GreersElbow · Feb 16, 2017

Springal said:
https://www.share.com/find-investments/funds/funds-of-funds/sf-adventurous/

Interesting it has chosen NA and UK equities as its main areas, it doesn't state cap size but with a beta of 1.02, I would imagine they're lower Dom-caps

Cheshire Cat · Feb 16, 2017

Anyone with any ideas about buying a pension annuity?

Driver8 · Feb 16, 2017

Cheshire Cat said:
Anyone with any ideas about buying a pension annuity?

I am an IFA based in Liverpool. Are you anywhere nearby?

Super Steve Earle · Feb 16, 2017

NatWest is launching a non advice, online investment service for existing customers from 20th February called NatWest Invest, managed by Coutts. Low charges, min £500 lump sum or £50 pm. Chance to dip a toe in the water.

MattBackHome · Feb 16, 2017

Pipex?

(Sorry)

beorhthelm · Feb 16, 2017

if your looking for safest options, various banks/building societies offer 3-5 year bonds with relativly decent interest rates.

if you want to accept some risk, and take a medium-long term view, look at putting into FTSE index trackers. over time, they do well well as the weak companies get dropped and replaced by growing companies, but accept risk you might be near a top and have to wait years to see it rise. very long term, dont want to touch, look at pension contributions. all in my non-professional opinion etc.

ferring seagull · Feb 16, 2017

TheJasperCo said:
Where - if at all - do you invest your money? The world of stocks, shares, bonds, ForEx, commodities, property and mutual funds is all a bit daunting.

I got a letter from my well-known building society (hint: it begins with "N" and ends in "ationwide"), telling me that the interest on my ISA is going to fall from 0.75% to half a percent next month. Fantastic. For me, that's the final straw. Where do you put your money to ensure a decent return, in the long-term? What would people recommend for a newbie - like me - to cash in regular monthly deposits?

I have done research, but many blogs and links are either out of date or US-focussed, or have an assumed knowledge that the reader will know what a global equity income strategy means.

Thank ye.

I too have been with NBS for many years with ISAs but have stuck with it because their rates are reasonable given the alternatives.

So unless you want to go down the shares thing, stick with it but keep it short, I renewed in October but only for 12 months as it is worth waiting to see what will happen given the current volatile situation.

Cheshire Cat · Feb 16, 2017

Driver8 said:
I am an IFA based in Liverpool. Are you anywhere nearby?

Sent you a PM

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