I'm looking to start investing, I've not get any experience with investing at all. I'm looking at a managed fund. The 2 I've seen stand out so far are the Lloyd's ready Made and the AJ bell Dodl. I've got £2k ready to invest straight away. Then I want to put £150 a month in going forward. Any advice on which is the better of the 2 or any others I should look at.
I would open a stock and share ISA and put everything in a world ETF, invest and forget!
Also my recommendation.
E.g. ISA with Trading212 (as no platform fees), put it all in Vanguard All World ETF (a favorite of this sub).
That saves you Dodl's 0.15% annual charge.
Trading212 will try to get you speculating and using CFDs - don't do that, just buy a global tracker.
Any reason you're looking at a managed fund? What does it offer that a fixed equity : bond allocation doesn't?
Someone at my work told me to look at managed funds, because I'm a beginner.
The implication being that once you graduate from being a beginner (when?) you have enough knowledge (from where?) to move onto bigger and brighter things (what?). I'd be interested to know what this learning curve is, because it essentially means that amateurs can be better fund managers than professionals.
You won’t find a lot of love for managed funds here because of their relatively high fees compared to DIY portfolios.
With £5k the difference doesn’t really matter, so go with what you’re most comfortable with for now (as long as it’s tax-protected e.g. S&S ISA). In future when you’re more experienced and knowledgeable you can switch approaches.
It can be confusing and scary, but you dont need a managed fund. ISA with InvestEngine is super simple, but a global index tracking ETF and youre away. InvestEngine is simpler and easier to use than Trading212.
Hi /u/ComprehensiveAd1519, based on your post the following pages from our wiki may be relevant:
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If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including
!thanksin a reply to them. Points are shown as the user flair by their username.Read the investing 101 and index funds pages of the wiki.
Watch Lars Kroijer's short video series and read his book or Tim Hale's Smarter Investing. Do both.
I would buy s and p 500 on dodl by aj bell. Very low fees and invests in the 500 biggest companies in the US. Low fees. This is what I do.
If you invest in an All world all caps tracker then you’ve got the S&P 500 pretty much covered and much better diversified.
InvestEngine is fee free. Look at an all world tracker such as Invesco All World (FWRG). Or Vanguard (VWRP). Passive investing rather than a managed fund will be cheaper and will perform just as well (or better). Join r/investingforbeginners sub.