How to invest 50k other than buy property?
Discussion
Croutons said:
No, no, not at all! I'm not on here often enough to keep up with things and am genuinely interested as I'm moving a crap pension to a SIPP so am nosing at other people's fund choices!
ETA, the change of mobile "skin" enforced on this site has killed much of my interest as it's much more time consuming to navigate, such a school boy error from the owners...
98's 10% in three Months is probably the norm for any Sterling investor who is diversified using funds targeting other regions. ETA, the change of mobile "skin" enforced on this site has killed much of my interest as it's much more time consuming to navigate, such a school boy error from the owners...
Edited by Croutons on Sunday 11th June 09:09
Anyone diversified before the Pound dropped from 1.6 (Dollar/Pound) will have captured windfall profits.
But....the problem now is that a Sterling based investor will now be buying overseas assets using a Pound of lesser value, and therefore getting less value. A smaller portion of each pie.
I posted my portfolio manager with the amounts blanked a while back, showing funds used and diversification.
The actual funds used are all Dollar funds.
I have averaged 7% over the past 10 years (my target is 8) but that includes a few quiet years and of course 2009.
One thing to be aware of is that investors are fickle, so the massive inflows that have powered Emerging Markets and Asia could easily reverse.
I usually like to "keep a bit" in regions or sectors currently in the toilet (contrarian) Russia/Eastern Europe and energy/commodities, less than 10% normally, although the more bloated the markets the more I consider increasing that. I look for value, P/Es never lie, (except in Miners & biotechs
)ETA Using P/Es....I am not suggesting individual shares, but by looking at the average P/E for an Index, region or sector against its historical norm (or average) one can tell if it is "ahead of itself" and therefore offering less value.
.
Edited by jeff m2 on Wednesday 14th June 18:54
98elise said:
Croutons said:
98elise said:
my funds are up about 10% in about 3 months.
Out of interest, have you told us all what they are on any thread? The main fund is lindsell train global equity. It's growth in the past year has been 37% and I've got over 10% since I invested.
http://www.hl.co.uk/funds/fund-discounts,-prices--...
There are other funds with similar growth. Just look through the HL wealth 150 and you can find others will similar levels of growth (some more).
I started a thread on here about a month ago about diversifying and the consensus was that I should which I'm now doing. Lindsell Train is still over 50% of my portfolio, but I've not finished yet.
TER):
0.75% i
Ongoing saving from HL:
0.20% i
Net ongoing charge:
0.55%
jeff m2 said:
ETA Using P/Es....I am not suggesting individual shares, but by looking at the average P/E for an Index, region or sector against its historical norm (or average) one can tell if it is "ahead of itself" and therefore offering less value.
interesting. what service do you use to research sector / region PEs ?Edited by jeff m2 on Wednesday 14th June 18:54
bogie said:
Depends on circumstances, I would just put it in my pension as then I can get 40% tax relief on it, stick it in a low cost Vanguard fund and forget about it for 10-20 years.
Pensions are good but remember you won't be able to get to the funds without paying a massive tax penalty or being terminally ill until the government stipulated retirement age.Essentially the money will be gone until you are mid to late fifties at best.
lepill said:
jeff m2 said:
ETA Using P/Es....I am not suggesting individual shares, but by looking at the average P/E for an Index, region or sector against its historical norm (or average) one can tell if it is "ahead of itself" and therefore offering less value.
interesting. what service do you use to research sector / region PEs ?Edited by jeff m2 on Wednesday 14th June 18:54
I also use the paid portion of Morningstar.
Some care is needed as not all P/Es can be taken just as a numeric value...e.g. obliviously a Finance fund heavy in banks would have a much lower P/E than say a general index or a basket of div payers.
It is a very good indicator of when a lagging region or sector is starting to "warm up" Emerging Markets from end of 2015 and more recently Europe.
So....if my US funds were approaching 17 and Europe was sitting at 14.5 I might increase my European weighting assuming other factors were favourable,. like a weak Euro.
Main use is to fine tune an already diversified portfolio.
I don't do this in a gung ho manner or I would create a lot of cap gains and in the US we don't have your generous exemption.
PostHeads123 said:
With Funds the bit I never really understood was the on-going fees for example on the fund you quote from HL I see the following annual charges, I'm I correct in saying that you just sum that up so 1.5% and that's the annual fee you have to pay, is that charged on the value on a given date ? When you sell up is GCT that are charged on profits ?
TER):
0.75% i
Ongoing saving from HL:
0.20% i
Net ongoing charge:
0.55%
This is telling you that the annual charges of the fund amount to 0.75%, but investing via HL secures you a discount of 0.20%. Therefore you will pay 0.55% per annum. This (via a complex mechanism we don't need to worry about) is typically calculated and deducted from the share price each day. This means that you are paying the fees "as you go".TER):
0.75% i
Ongoing saving from HL:
0.20% i
Net ongoing charge:
0.55%
In simple terms, CGT is payable yearly on realised gains above your annual allowance. This doesn't happen within the fund. HL will provide you with an annual statement showing the relevant entries you need to make on your tax return.
Edited by WindyCommon on Friday 16th June 09:51
Supersam83 said:
£50k could buy you about 183 Ethereums right now 
After 5 years you could buy the house outright with change left over
Cant tell if sarcastic or not but this is probably the best suggestion here. Or invest in a smaller coin like Stratis and you are guaranteed at least a double up as its so undervalued. After 5 years you could buy the house outright with change left over
WindyCommon said:
PostHeads123 said:
With Funds the bit I never really understood was the on-going fees for example on the fund you quote from HL I see the following annual charges, I'm I correct in saying that you just sum that up so 1.5% and that's the annual fee you have to pay, is that charged on the value on a given date ? When you sell up is GCT that are charged on profits ?
TER):
0.75% i
Ongoing saving from HL:
0.20% i
Net ongoing charge:
0.55%
This is telling you that the annual charges of the fund amount to 0.75%, but investing via HL secures you a discount of 0.20%. Therefore you will pay 0.55% per annum. This (via a complex mechanism we don't need to worry about) is typically calculated and deducted from the share price each day. This means that you are paying the fees "as you go".TER):
0.75% i
Ongoing saving from HL:
0.20% i
Net ongoing charge:
0.55%
In simple terms, CGT is payable yearly on realised gains above your annual allowance. This doesn't happen within the fund. HL will provide you with an annual statement showing the relevant entries you need to make on your tax return.
Edited by WindyCommon on Friday 16th June 09:51
SDarks said:
Cant tell if sarcastic or not but this is probably the best suggestion here. Or invest in a smaller coin like Stratis and you are guaranteed at least a double up as its so undervalued.
Not sarcastic but I probably thought that it's not likely the OP would take my advice seriously. But I believe this would be the best option of investing at this moment in time.
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