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I’m just starting out with investing in the UK; what are the cheapest and most diversified options I could look at, and what are the pros and cons of each in plain English?
I’m just starting out with investing in the UK; what are the cheapest and most diversified options I could look at, and what are the pros and cons of each in plain English?
I’d suggest ftse all world (VWRP). It’s basically a collection of the largest international companies, across different sectors. It’s quite heavily weighted to American companies, but I’ve just looked at it today and it’s up almost 30% year to date! If you want to get started - dollar cost average in, basically means you buy smaller amounts every month rather than buying it all at once, it means you’ll capture high prices and low prices. Then you just need an investment app to get started. I’d probably suggest IG if you’re looking for something with a good sign up bonus and everything you need in the long run
Ive always rated the S&P 500 personally. Never done me wrong and for a long time investment its almost as good as it gets i think. its the first stock i invested in and to be honest i wish i just stuck to that plan.
Most UK personal finance communities recommend broad global index funds over stock picking for beginners because they’re cheap, diversified, and historically hard to beat long term. Many investors simply buy one global tracker and contribute monthly rather than paying extra for expensive robo-advisors
A stock and shares ISA invested in na global tracker fund is prob the lowest cost diversified strategy available in the uk. You can start with small monthly amount, benefit from tax free growth and also avoid the higher fees charged by many investment products
@wolfstone What made you choose VWRP over something like the S&P 500?
It basically has the S&P inside but also more of the largest companies, slightly more diversified. I’d have both to be fair!
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