Playing around with funds

I

Ihana

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I have been trying to get my head around investing in funds lately. My bank allows me to buy into funds directly from my online banking so I have been experimenting a bit with small amounts (that I dont need access to). Last month I put 100 euro into a fund based on high yielding bonds. This month I put a small bit more into a climate and energy fund.

Is this a stupid thing to do? Should I be saving up larger amounts and investing them in one go_? I have 15K in a bank account doing nothing but I dont want to invest it until I have a better idea of what I am doing. I also dont want to invest in something like philip morris. And I want to get a good idea of how much it will cost.

(btw this would be saving for a long term time horizon and I am open to high risk right now, I have short term savings going into savings accounts)

I cant link to the bank but its nordea finland and investments.
 
Ihana said:
I have been trying to get my head around investing in funds lately. My bank allows me to buy into funds directly from my online banking so I have been experimenting a bit with small amounts (that I dont need access to). Last month I put 100 euro into a fund based on high yielding bonds. This month I put a small bit more into a climate and energy fund.

Is this a stupid thing to do? Should I be saving up larger amounts and investing them in one go_? I have 15K in a bank account doing nothing but I dont want to invest it until I have a better idea of what I am doing. I also dont want to invest in something like philip morris. And I want to get a good idea of how much it will cost.

(btw this would be saving for a long term time horizon and I am open to high risk right now, I have short term savings going into savings accounts)

I cant link to the bank but its nordea finland and investments.
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the good news is that people with little to no knowledge of the markets can still benefit , the only condition is that they have patience and do not panic sell , the market is full of traders who cause even the best companies to sometimes sell off , reasons often have nothing to do with the fundamentals of the companies


the biggest priority for someone investing should be to keep costs to a minimum ,as such you should not touch any funds which banks are selling , they will cost at least 1% per anum and all the bank will do ( in most cases ) is stick it in an ETF index fund

you are better to simply open an account with a stock broker and put the money in either a global index etf or a combination of an s+ p ( americas biggest index ) or a rest of world index fund , the s + p etf has a fee of .05% if you buy through vanguard and buy in dollars , if you buy a euro denominated s+ p etf , the fee is .09% per anum with vanguard

i would wait another six months to buy however , the s + p is at an all time high and a 10 to 15% correction is quite likely , this is one of the longest bull markets in history , began in april 2009 and is up more than 150 %

when you do eventually buy , be prepared to stay in long term , you should receive an anual dividend of around 2% on an s+p etf , nothing special but hardly any worse than whats bank savings accounts are paying and your capital wont grow there
 
Cheers for the advice.

i just had a look again at the charges. One of the two funds costs 5% to enter, 1.89% a year and a 1% exit charge. I guess I can get lower cost funds than that. Still, the convenience of it is excellent. It has had a 59% return over five years so even if it doesn't do well it probably beats leaving the money in deposit account over the longer term. The bank doesn't offer any Standard and Poors ETFs. I will seriously look at investing a larger lump sum into that when I am a bit more knowledgeable about what I am doing (and when whatever is happening to the markets now has finished happening)

The particular fund is "A SICAV fund registered in Luxembourg, investing in companies that take account of the climate and environmental challenge (climate change), and seek to alleviate environmental effects and intensify the use of natural resources. The fund mainly invests in non-euro denominated securities. The fund does not apply currency hedging. Fluctuations in currency rates usually have no significant impact on the return on the unit in an equity fund on a longer term or on the risk related to the fund?s investments."
 
btw, can anyone recommend a stockbroker to open an account with? I had a look at it before but didnt have time to get everything together before going abroad for a stint with work.
 
cremeegg said:
Thats never. Markets are always in the middle of something.
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True but nevertheless, I don't think right now is the time for me to invest with the instability in Ukraine and Gaza and the overdue correction. Will be watching closely over the coming weeks.
 
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