Investing.. Where to start

[anonymous-user]

So I am fortunate to have zero debt except the mortgage. Used all the tax efficient SAYE schemes at work. Pension is well on track. So I now need to start looking at investing,

Mutual funds look good. Question is, how do you tell a good one from a bad one and can anyone recommend any reading? I'd also like to open a general trading account to take the odd punt on shares (aside from the mutual fund) I like the look of (Put another way, playing the market with virtual money, I picked three stocks that have increased by between 1/3rd and doubled, even with Covid.

Any advice welcome

[Mr Pointy]

This thread has a lot of useful information:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[drmotorsport]

OK so you at least need to start to recognise the difference between investing and gambling (taking a punt on shares) You need to have an clear objective and a timescale in which to achive it. If you've got 20+ years for your investment to grow then you have more option than needing the cash next year.

Also be wary of star fund managers - just look at Woodford as to what can go wrong!

[Taita]

Definitely worth a few hours in the IM thread, and posting in the thread for some guidance. Even if you don't end up a client with them directly, the info is free and helpful, and applicable to any provider.

[davepen]

ChocyLint1 said:

a good one from a bad one

Basically time machine (or crystal ball).

Assuming you have a DC pension - where is that invested - and why?

Some say buy the market with a global tracker - see Monevator site, or IM's range above.
Some say choose your fund manager, Fundsmith, BG-SMT or PC, (do you like Tesla?) , Woodford who crashed, or even PH-Equity choice.
Go for something with more risk - IM's PH Recovery?
Some say leave it to Troy Trojan or in Bonds.
Is ESG just a greenwash selling tactic or important.
Been told what, or what mix of the above is advice...
Some will advise for a fee.

Or just give it to your pension fund - it may save you tax, although you may not be able to get it back for a while.
You may wish to consider a S&S ISA which avoids a lot of tax issues, but you can only add £20K pa.

As to which supplier it depends on amount of trades and holding value. Some sites like Boring Money have calculators or there is a spreadsheet in MoneySavingExpert. I've not looked at Trading as such.

I started drip feeding in Feb this year, as the cash ISA's got even worse rates, the funds I choose have gone down and up. I've used HL which maybe more expensive (@0.45%), but has free fund trades, which has been handy as I learn more about myself [aka, risk tolerance] and feed in more. This year has been an interesting lesson in market timing and time in the market.

[bitchstewie]

Read read read.

Try and get some idea what level of volatility you can stomach.

Look to the past (more than just the past 10 years) to see what different asset class can really do when stressed.

Read read read.