Is the FTSE a good place to invest right now (ISA)?

[slapmatt]

I'm looking to use up my ISA allowance and I'd like some capital growth, medium risk. I like the look of FTSE 100/250 funds, but I'm concerned that with the FTSE reaching record levels, now might not be the right time to invest my hard earned cash.

Am I being over cautious? Does anyone else have any hidden gems?

[leosayer]

If you're in for the long term over 5 years then I would say definetely.

Don't limit yourself to the FTSE, there are other companies and other countries out there - spread the risk. Leave some cash aside for emergencies.

[Robertb]

Consider a good global fund;- gives a better spread, simple to manage if you don't want to waste time chopping and changing.

[neilcharlton]

FTSE could dive , too many things could spoil the party :
terrorism, asia , china ecconomy , ressesion, Iran , oil price , blar blar blar
i'd keep it in cash at least you dont loose any money !
I work in hedge funds and have ZERO in the FTSE.

[J_S_G]

Historically, I've put 60%+ of my investment capital into UK-based Special Situation funds (Fidelity SS, especially). I've been diversifying a lot more over the last couple of years; Natural Resources funds and South America have been a couple of my favourites over the last 24 months. In particular I moved quite a bit into the Invesco Perpetual Latin American Fund, and the JPM Natural Resources Fund. My current thinking is approximately another 6 months or so there before switching some back out. I've got nothing but praise for Fidelity's site (www.fidelity.co.uk) for managing this as the (VERY) amateur investor I am; it's great for comparing/plotting funds, and keeping track of your investments (not to mention reasonable discounts on buying into them).

If you'd like to stay in a more "traditional" market, then you could probably do a lot worse than the Fidelity European Fund; at least you're not stuck with what the Blair & Brown double act to do our country in the name of a "good laugh".

Hope that's of some use.

WARNING: I'm not risk averse. I'm investing purely to see if I can make a killing and retire by 40... bonds don't feature heavily in my portfolio. Or cash. I might cry (a lot!) if I lost this money, but I'd not be on the streets. Please ignore everything I've said if you desperately can't afford to lose a bit of money short-term.

[slapmatt]

In the end I went for a "fund of funds". I can't say I was massively impressed with the financial advisor at HSBC, but I thought I'd give her the benefit of the doubt as this was my first time doing any real investing.

Interesting stuff though guys - thanks.

[J_S_G]

slapmatt said:

In the end I went for a "fund of funds". I can't say I was massively impressed with the financial advisor at HSBC, but I thought I'd give her the benefit of the doubt as this was my first time doing any real investing. Interesting stuff though guys - thanks.

Not a bad bet at all in terms of lowering exposure to risk. Just watch out for the "fee of fees" that'll be associated with it; could contribute to eroding capital quite quickly in a bad couple of years...