Right, Decided to add around £10 a time after deciding not to pop into a takeout etc on the way home. What shares are worth getting?
I have some CiNe and bushels at the moment. Which are relatively doing ok about a 25% increase on investment (2 weeks). About to launch another high stakes £10 into the mix what would you go for?
Making your first decision to invest in shares rather than takeout is a great step! I would recommend working out what your aims are too. For instance you may want high dividends (as above would give you) or you may want to minimise this for tax purposes and just make capital gains when you cash out later.
I’m a newb and so took a similar stance to you, investing in tenner here and there. Many of my first choices were poor because I did not do enough research around the companies’ financials. Even though I made losses of 20-30% rather rapidly, that’s only £2 or £3 on a £10 investment. Had I researched better, that loss could have been making money else where, so it’s worth the work.
I am personally looking at industries that I think will do well during what I think the economy is doing (not necessarily the same as you or the same as reality ) and then picking leaders in those sectors.
Don’t forget that FT offer fractional trading so you can always buy £10 of Tesla if you can’t afford a whole one!
It looked at the fractional trading so maybe a way of buying more expensive shares slowly. I’ll look at these hi-dividend ones and see what goes as I don’t want to start messing around with tax too much on such low numbers.
Will have to read up on strategies and see what way to take it all. But with initial low investment as you say 20 - 30% drop in value is nothing on £10.
Or you could slowly work your way through and purchase the stocks that IUKD invests in. Then you won’t pay the 0.40% expense ratio. Can see more information on holdings here:
I have also included a table of their top holdings so you can get a feel for what they invest in.
Good point, if @Larigost is investing in the long-term then the 0.5% stamp duty will be less than the ETF cost. Either way there are 2 options for him to consider.
Also feels nicer to receive a higher quantity of dividends, the ‘received investment income’ notification still makes my day - even if it is a small amount
It would take you ages to build up that portfolio at £10 at time, and without fractional shares you wouldn’t be able to get them in the same percentages as the ETF
That’s not to say it’s a bad idea to pick and choose which ones you want and buy the shares directly.