Stocks and shares ISA - low risk, low maintenance option?

[Claudia Skies]

Claudia's Conundrum,

• If no-one was willing to buy when the market was "high" it could never rise, because no-one would be buying.
• If everyone bought on a "dip" then the market could never fall, because everyone would be buying.

What's more,

• If the market is higher than 100 years ago, and
• If the market is higher than 10 years ago, and
• If the market is higher than 1 year ago, and
• If the market is higher than 1 month ago,

does that mean you can never lose??

[ringram]

80% of the time the market goes up.

Its a game of statistics. Play the long game.

The biggest determinant of performance is fee's

iShares do a FTSE ETF tracker for 0.07% FWIW

[TFP]

ringram said:

The biggest determinant of performance is fee's

Would love to see your evidence for this.......

Purely to satisfy my curiousity of course.

[isee]

Ginge R said:

I've just seen some data from a well known online sales brokerage. Between 25 and 30% of ISA savings are going into AIM/Microcap. Given that analysis in this new micro-cap sector is practically non-existent, the risk for investors (should that be 'speculators'?) is much, much higher.

That’s not to say one shouldn’t invest in AIM. But this is a trend, a bubble and when/if it does burst, and when everyone realises that we really are programmed to keep making the same old same old investing mistakes, has anyone given any thought to their AIM ISA liquidity?

Provided those micro caps are correctly valued and diversified under CAPM, there should be no difference in overall return even if an unusually high number of them go bust. I am no expert, but wouldn't take the statistics you quote out of context like that. (No offence meant as I know we are all huge experts on the forums etc )

Edit: having re-read your post. by 30% ISA savings do you mean that 30% of an average portfolio is invested into AIM or 30% of portfolios held with the brokerage firm are entirely invested into AIM?

Edited by isee on Tuesday 24th March 10:52

[isee]

DSLiverpool said:

Totally disagree with your nonsense comment, if you make a large capital investment at the top of the FTSE or invest in funds at their all time high would you say its a good move or would it be better to wait and see what a potential political upheaval does to the market first? Even if your in it for 20 years it does no harm buying on a dip. You may not agree because you look further into it than I do but it doesn't mean I am talking nonsense.

How long will you be waiting for dip? Will you admit that you were wrong and buy at 9000 having missed 2000 points, or carry on waiting for the dip to get back to 7000 (where you were originally calling it an all-time high) to buy in? Will you buy in at 12000 if you were yet again proven wrong?

The only way to reliably remove the timing risk is to buy at regular intervals, regardless of price.

[DSLiverpool]

isee said:

DSLiverpool said:

Totally disagree with your nonsense comment, if you make a large capital investment at the top of the FTSE or invest in funds at their all time high would you say its a good move or would it be better to wait and see what a potential political upheaval does to the market first? Even if your in it for 20 years it does no harm buying on a dip. You may not agree because you look further into it than I do but it doesn't mean I am talking nonsense.

How long will you be waiting for dip? Will you admit that you were wrong and buy at 9000 having missed 2000 points, or carry on waiting for the dip to get back to 7000 (where you were originally calling it an all-time high) to buy in? Will you buy in at 12000 if you were yet again proven wrong?

The only way to reliably remove the timing risk is to buy at regular intervals, regardless of price.

I agree that dripping in is a best strategy but it bores me and I prefer to gamble the market - wrong for many, its ok for me.

[isee]

Mattt said:

Hargreaves Lansdowne or Charles Stanley Direct as a platform then some low Cost trackers e.g. Vanguard Lifestrategy.

CSD have a foundation portfolio for beginners that they recommend until you find your feet.

Trust net is good for research.

am signing up to Charles Stanley based on your post, would you like to give me an introducer's number to use?

Cheers