INVESTING FOR BEGINNERS 📈

✅ - WHERE to invest

✅ - HOW to invest

✅ - WHY to invest

THREAD BELOW👇🏻
WHERE?

VANGUARD

A recommendation for BEGINNERS:

LifeStrategy funds that offer 5 portfolios based on risk appetite

✅- Lowest percentage platform-based fee of 0.15% (max £375)

✅- No fund dealing or account closure fees

✅ - Minimum ISA deposit of £500 or £100 per month
NUTMEG

Creates a portfolio for you based on your goals, timeframe, amount to invest and risk appetite

✅ - Fee free for a year through MoneySavingExpert

✅- No account closure fees

✅ - Minimum ISA deposit of £500
WEALTHIFY

Creates a portfolio for you based on what type of investor you are, ranging from cautious to adventurous

✅ - Fee free for a year through MoneySavingExpert

✅- No account closure fees

✅ - Minimum ISA deposit of £1
OPENMONEY

Creates a portfolio for you based on your circumstances, financial goals and risk appetite

✅ - Low percentage platform-based fee of 0.35%

✅- No account closure fees

✅ - Minimum ISA deposit of £1
MoneySavingExpert

This link provides you with all the information on WHERE to invest

My thread is specifically for BEGINNERS which is why I haven’t sent people straight to the website

You will find the “no fees for a year” links through this page: https://www.moneysavingexpert.com/savings/stocks-shares-isas/
Stocks & Shares ISAs

Platform charges for stocks & shares ISAs can vary from very cheap to very expensive, this guide tells you where to get the best and cheapest platforms.

https://www.moneysavingexpert.com/savings/stocks-shares-isas/
HOW?

POUND COST AVERAGE TECHNIQUE

✅ - Invest weekly or monthly rather than yearly or a lump sum

You buy Fund A at £100 today

Fund A falls to £90 next week

You buy Fund A at £90

Average is £95 ((100+90)/2)

Fund A rises to £98 next week

You have £3 capital growth
EXCHANGE TRADED FUNDS (ETFs)

✅- These track the performance of an index

✅ - Greater diversification than individual shares and less likely to experience huge swings in value

✅ - Can find funds you are interested in based on industry, geography and market cap etc.
WHY?

✅ - Historically better returns than savings account

✅ - With an estimated 7% return per year over 10 years then you should beat the 2% inflation target

✅ - The effects of compounding are greater on an estimated 7% return

However, compounding also applies to fees
WHY? - Historically better returns than savings account - With an estimated 7% return per year over 10 years then you should beat the 2% inflation target - The effects of compounding are greater on an estimated 7% return However, compounding also applies to fees
WHY? - Historically better returns than savings account - With an estimated 7% return per year over 10 years then you should beat the 2% inflation target - The effects of compounding are greater on an estimated 7% return However, compounding also applies to fees
CONCLUSION

I encourage BEGINNERS to start with funds

Instead of individual shares through platforms such as Freetrade

Funds are a middle ground between savings and individual shares when it comes to risk and reward

Go to MoneySavingExpert for further guidance
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