Funds?

Just after some advice from anyone who knows about different
investment products.
I was just wondering if there is some sort of fund that can be set up
where people can put a certain amount of money into it, and also
select shares in different companies that a certain percentage of the
money invested would be based on?
For example if I had £2,000 to invest, instead of buying £500 of
shares in 4 different companies, is there any sort of fund you could
set up to spread your investments further to protect against loss (eg
not putting all your eggs in one basket).
So for example that £2000 could be in some sort of fund where you can
chose to split the investment in 10 different directions, perhaps 10%
would be based on the performance of the London Stock Exchange, 50%
would be spread between 6 or 7 different companies, and the remainder
invested against the price of Gold or Silver etc?
Is there anything like this where you can set up your own fund and
decide what the money is invested against and split it in a number of
ways?
Thanks for your help
John
Reply to
John
Investment trusts or unit trusts (or whatever they are called these days), there are thousands of them, just find one that meets your requirements for the type of investments.
Reply to
Tumbleweed
That's the closest you'll get. You can't have your own specifically tailored fund.
Tiddy Ogg.
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Reply to
Tiddy Ogg
You could try something like Fidelity's Global Growth collective fund of 5 funds, available via their FundsNetwork:
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It gives you exposure to all the main worldwide markets and the charges are relatively low. The fund is well up at the moment but short-term risk is on the higher side with Japanese and Far East markets represented, (although they're good places to be long term).
If you only had 2000 to invest, you could split it into two 1000 lumps and invest one as above and one in something safer like a collective bond/UK income fund. Note that 1000 is usually the minimum you can invest in a Unit Trust or OEIC. (OEICs are the modern equivalent of the traditional Unit Trust and are simpler to stick to if you're just starting out - there's no bid/offer spread on the prices so what you see is what you pay and also what you get when it's time to sell or switch funds.)
A tracker fund would give you exposure to all the main UK companies shares, and Fidelity currently have the cheapest option here too. Personally, I wouldn't take a tracker just yet though as the market is currently overpriced and due for some downward correction. It all depends what your investment horizon is. If you're looking ten or more years ahead, say for school or university fees, then the sooner you're in the market the better.
Anyway, have a browse through Fidelity's offerings and also check out Hargreaves Lansdowne:
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They both let you apply, deal and value your investment portfolio online. -Neil F.
Reply to
neil f
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We should note that it would be more cost effective to invest in each of these funds individually so you don't get two sets of charges, but of course that would require a minimum of 5000 (1000 min in each fund).
Reply to
Aztech
It sounds to me like you want a standard trading account. You can by shares in individual companies, in investment trusts, or ishares in indices (including, i think, commodoity indices). The drawback is the dealing costs (e.g., 10 investments means at least 14 pounds per share to buy and sell at current levels plus spreads and stamp duty on top). If you are actively trading this'll just eat up your investment and on a long-term investment you'd nearly 10% gain just to break even.
You'd be better advised to be shares in investment or unit trusts trust that spreads its investments the way you prefer.
Thom
Reply to
Thom

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