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Davie P
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Has any of you folks used an online investment platform? AJ Bell, Hargreaves Lansdown, Vanguard or similar?

 

The interest rates paid by bank accounts is generally less than inflation so you're in effect losing money. So, I was going to invest a little cash regularly into a Stocks and Shares ISA but I'm a little bewildered as to where to start!

 

Here's an intro if you don't know what I'm talking about - https://www.moneysavingexpert.com/savings/guide-to-funds/

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Has any of you folks used an online investment platform? AJ Bell, Hargreaves Lansdown, Vanguard or similar?

 

The interest rates paid by bank accounts is generally less than inflation so you're in effect losing money. So, I was going to invest a little cash regularly into a Stocks and Shares ISA but I'm a little bewildered as to where to start!

 

Here's an intro if you don't know what I'm talking about - https://www.moneysavingexpert.com/savings/guide-to-funds/

 

I don't know about  AJ Bell, Hargreaves or Lansdown but I have a couple of Vanguard exchange traded funds. I'm not sure if you are familiar with ETF's, but you buy and sell them via an online stockbroker just like any other companies stock. I like the Vanguard ETF because the management fee is very low. Typically less than 0.5%. There is an abundance of underlying indexes which you can choose to track. I selected a fund which tracks the S&P 500 (US stock market) and it has returned me almost 30% over the past 3-4 years. Plus I also get a quarterly distribution payment on top of that. I'm very happy with them. Its pretty much set and forget and, according to Warren Buffet, it is the most effective way for the man in the street to invest over the long term. Of course you have to remember that when the market goes down so will your fund, but if you have some spare cash that you can manage without over say a 5 year period, I would certainly recommend an ETF from Vanguard.  

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I was going to invest a little cash regularly into a Stocks and Shares ISA but I'm a little bewildered as to where to start!

 

(I'm a little bit late with a response but...) here's a few links to comparisons and reviews

You'll need to think about how often you plan to buy/sell shares and how much your overall portfolio will be worth as some platforms charge per trade, some charge a flat % fee or a combination of both

 

I have a couple of Vanguard exchange traded funds. I'm not sure if you are familiar with ETF's, but you buy and sell them via an online stockbroker just like any other companies stock. I like the Vanguard ETF because the management fee is very low. Typically less than 0.5%. There is an abundance of underlying indexes which you can choose to track. I selected a fund which tracks the S&P 500 (US stock market) and it has returned me almost 30% over the past 3-4 years. Plus I also get a quarterly distribution payment on top of that. I'm very happy with them.....

 

This is excellent advice. ETFs (Exchange Traded Funds) are bundles of securities (i.e. shares, bonds, commodities etc) and are ideal for getting started with investing. When you buy a share in an EFT you're essentially buying multiple smaller shares across a range of securities.

 

They're generally divided into two classes - passive, which will track a specific market (such as the S&P 500 JGHR mentioned) or active, which has a fund manager who makes the investment decisions (these funds generally have higher fees as the fund manager takes a commission)

 

....its pretty much set and forget and, according to Warren Buffet, it is the most effective way for the man in the street to invest over the long term. Of course you have to remember that when the market goes down so will your fund, but if you have some spare cash that you can manage without over say a 5 year period, I would certainly recommend an ETF from Vanguard.  

 

Again, excellent advice. The markets can be quite volatile in the short term but over the long term (5+ years) they have consistently risen in value. In general, if you hold your nerve and don't sell your shares when markets take a dip you should be OK. In fact, when markets are on a downturn it can be a good time to buy as you'll get more shares for your money

 

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DIsclaimer: I'm nae expert, I'm just some fellow on da internet!

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