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  • 2021 small scale investing – beyond Premium Bonds
  • boombang
    Free Member

    Loads of threads on here already so waiting for someone to say Fundsmith, but basic scenario is over last few years I have managed to save a small emergency pot in Premium Bonds (which works well – no risk and easy to withdraw) and want to keep saving the same amount each month.

    Previously I’ve used regular savers at 3-5% then annual put that into Premium Bonds. As I am willing to take moderate risk on any new savings and rates are low it doesn’t feel like the best strategy for extra savings. I don’t want them locked away and would like it to give me options for future, so overpaying mortgage (1.79% and 20+ years) or putting more into a DC pension / SIPP doesn’t necessarily feel the best strategy either.

    I’ve never begun to got close to an ISA limit, so that would seem a sensible vessel to use.

    Full Member

    Problem as I see it with Premium Bonds lowering their rates, and interest rates being poor, along with bonds yields, is that I reckon there’s a lot of cash chasing a better return – hence the one-way juggernaut that is the like of Scottish Mortgage IT – big holding in Tesla, such that they have to keep off-loading more, and yet price keeps going up.

    Check out the YouTube video channel for pensioncraft – good summary of options and why some might be too good to be true. I suspect the likes of Fundsmith fall into the category of more and more folk piling in, with the chances of a reversal increasing.

    Free Member

    Vanguard LifeStrategy Funds are solid performerming passive funds that are diversified, accessible at differing risk levels and cheap.

    Full Member

    I started a stocks and shares ISA in 2020. Only put £600 in to it and I’ve finished the year with just shy of £700 sat there. Obviously not capital protected – I went with an HSBC ISA and have split £200/£200/£200 in conservative / ‘Dynamic’ / high risk funds respectively. Thinking that spreads the risk and it’s not all my savings in one pot. Planning to just try and pile as much as I can in there when I can to save for when my daughter needs some cash for something – whether that be secondary school / Uni / buying a house etc

    Free Member

    I can second Vanguard Lifestrategy Funds and you can have them as an ISA. They won’t set your pants on fire but the ongoing charge is low,0.22% I think.

    Free Member

    Look at Intelligent Money.

    I have a code for bypassing the 100k minimum.

    Full Member

    I set-up an investment ISA with Barclays a couple of years ago for my daughter. No real plan for it yet…uni, wedding, house deposit etc. but good to know there will hopefully be something there. She’s only 5, so got a while yet!

    I spent quite a lot of time looking at funds and soon realised that unless you are investing relatively large amounts you have to go for the riskier funds to get a decent return.
    I have currently got 4 funds invested:
    A Fidelity Asian fund
    L&G global 100 Index Trust
    Meridian UK Mid Cap R A
    Vanguard Lifestyle strategy 80%equity A

    The lowest return so far is Meridian with 9.7%, highest is the Fidelity Asian one with 39.7%.
    I should ditch the Meridian one when I find time.

    The way I do it is set-up an HSBC regular saver account. This used to return 5% with £250 max a month to invest over 12 months. When that is completed after the 12 months, I use that money to invest and start a new regular saver. Annoyingly, the rate has halved now to 2.5% but it’s convenient for me to keep using it as an HSBC customer.
    Each time I invest, I look for a different area to invest in to try and spread the risk.

    The Barclays smart investor website has some good tools to learn a bit about it. I am not particularly savvy when it comes to this type of thing, but it’s working OK so far!

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