How to invest in FTSE 100?
Discussion
First off you need to decide whether you want to buy it in an ISA, pension, or a general trading account. ISAs and pensions have tax advantages.
You then need to choose a platform. Popular choices are Hargreaves Lansdowne, AJ Bell, Fidelity, Vanguard... There are loads of providers. They will charge you fees, normally a 'platform' fee and a fee to buy/sell funds. Fees vary between platforms; Fidelity and HL tend to have higher fees but popular sparkly websites.
There are also a lot of funds to choose from (FTSE 100 trackers). BlackRock, iShares, individual banks... There are loads of fund providers.
If you want a quick option, you'd struggle to go wrong with a Vanguard account and their ftse100 tracker. They also have many other funds to choose from such as LifeStrategy which give you exposure to other share markets across the world.
This is the most basic info, but there are some good resources on piston heads. The IM sticky in the finance section and the 'useful resources for the DIY investor' thread.
The book which got me interested was 'the millionaire teacher'. It explains things well and is easily understandable.
Hope that helps!
You then need to choose a platform. Popular choices are Hargreaves Lansdowne, AJ Bell, Fidelity, Vanguard... There are loads of providers. They will charge you fees, normally a 'platform' fee and a fee to buy/sell funds. Fees vary between platforms; Fidelity and HL tend to have higher fees but popular sparkly websites.
There are also a lot of funds to choose from (FTSE 100 trackers). BlackRock, iShares, individual banks... There are loads of fund providers.
If you want a quick option, you'd struggle to go wrong with a Vanguard account and their ftse100 tracker. They also have many other funds to choose from such as LifeStrategy which give you exposure to other share markets across the world.
This is the most basic info, but there are some good resources on piston heads. The IM sticky in the finance section and the 'useful resources for the DIY investor' thread.
The book which got me interested was 'the millionaire teacher'. It explains things well and is easily understandable.
Hope that helps!
I did exactly this a little over 2 years ago and started a thread about it, so this might help: https://www.pistonheads.com/gassing/topic.asp?h=0&...
Just over £4,000 down currently - it's going well!
Just over £4,000 down currently - it's going well!
Hoofy said:
LeadFarmer said:
Thanks, I'll give those some good reading.
Doesn't sound like theres a way of jumping in now whilst its low, and then cashing in in a few weeks on a rise, like you can a normal share?
These lows may look like highs in a couple of weeks. What then?Doesn't sound like theres a way of jumping in now whilst its low, and then cashing in in a few weeks on a rise, like you can a normal share?
Hoofy said:
LeadFarmer said:
Thanks, I'll give those some good reading.
Doesn't sound like theres a way of jumping in now whilst its low, and then cashing in in a few weeks on a rise, like you can a normal share?
These lows may look like highs in a couple of weeks. What then?Doesn't sound like theres a way of jumping in now whilst its low, and then cashing in in a few weeks on a rise, like you can a normal share?
If I had to guess where it's going, it would be down further. After all this is over some major companies may no longer exist.
Vanguard is simple enough to set up, and for a FTSE 100 fund I think there are two types - an Index fund or a ETF. I've not quite sure what the difference is or which is better between the two but the Index is cheaper to run. Mmmm, does anyone know what is the difference between them two trackers? 
LeadFarmer said:
What are the ways of investing in the FTSE 100?
I realise its a spread of companies, but how do you invest?
With it suffering such a drop in price, I'm tempted to invest, but how?
Before you invest it might be worth reading something likeI realise its a spread of companies, but how do you invest?
With it suffering such a drop in price, I'm tempted to invest, but how?
https://www.amazon.co.uk/Investing-Demystified-inv...
LeadFarmer said:
Which is why I'm wanting to learn how to do it now, so when i think the time has come, I'm ready to act.
Open an ISA with Vanguard. Deposit money into the account but keep it as 'cash' - I think the minimum to open is £500?Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
DaveCWK said:
Open an ISA with Vanguard. Deposit money into the account but keep it as 'cash' - I think the minimum to open is £500?
Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
Thanks for that buddy :-)Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
LeadFarmer said:
DaveCWK said:
Open an ISA with Vanguard. Deposit money into the account but keep it as 'cash' - I think the minimum to open is £500?
Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
Thanks for that buddy :-)Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
1) If you are looking at this as a long term investment the a pension wrapper will be the most tax efficient way of doing this.
2) If you want to be able to get at your money any time, then an ISA wrapper is the most tax efficient way of doing ths.
3) If any platform (dealing account) wants to charge you extra for these tax wrappers then look elsewhere.
4) I am ingonring the relevance of whether an investment in the FTSE 100 is right for you (I understand you are seeking to gain from previous market falls), but do consider other options that will no resstrict you to one slice of one economy,
5) Fidelity, Hargreaves Lansdown, AJ Bell and Cavendish Online are very good starting points for your research. You will be looking for a FTSE 100 "tracker" or "ETF" (an Exchange Traded Fund that tracks the FTSE 100). Just search for FTSE 100 and find the lowest price (with the highest liquidity).
6) Call these companies and speak to them. This will give you a good idea as to what you can expect from them should you become a client.
7) Return to 1
DaveCWK said:
Open an ISA with Vanguard. Deposit money into the account but keep it as 'cash' - I think the minimum to open is £500?
Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
I wouldn't buy in one lump, especially with the current uncertainty. When I invest in funds I do it by setting up a regular saver, I use HL - where you can set up a regular saver from £25 per month. If as above, you were looking to invest £500 in a FTSE 100 tracker, then as a minimum I'd be doing that over 5 months, so £100 per month.Use the £500 to purchase the fund of your choice when you feel the time is right.
That's about the easiest/lowest cost way I think.
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