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diversification costs investment/unit trusts

by compound200 04 January 2010 |

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if you want about 4 trusts to diverse your portfolio.

whats the smallest amount would you invest monthly for value costs?

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410

manzanilla posted
What IT's / UTs are you looking at? Unless they are VERY specialised, you are already buying a 'diversified product', so diversifying further by having 4 ITs/UTs is less important than if you were buying a single company.
On that basis, if you can't invest much each month I would put it all into 1 trust. Then the next month buy a different one. etc. Rather than splitting my monthly purchases and incurring higher commission costs.
manzanilla
Posted on 04 January 2010 | Love 0 loves Report
7

compound200 posted
do you lump sum diff trusts manz?
Posted on 04 January 2010 | Love 0 loves Report
804

MikeGG1 posted
Why not just go for a Low-cost All-Share Tracker from, say, Legal & General or Fidelity, or an Exchange Traded Fund. Or if investing for over 10 years then go Global.
They are geared up for small investments.
Mike
Posted on 04 January 2010 | Love 0 loves Report
410

manzanilla posted
do you lump sum diff trusts manz?
are you asking if I make monthly investments into a changing selection of trusts? No - I am retired, so my days of having additional money each month to invest are sadly over.
But when I was working, I would let my savings accumulate to a reasonable level - about £1000 - then invest them. Somtimes this took a few months. Sometimes I could manage 2 chunks at once after a bonus.
manzanilla
Posted on 04 January 2010 | Love 0 loves Report
804

MikeGG1 posted
You could do a 12-month fixed-rate mothly saver each year and then you would have a reasonable lump sum to invest. Current top rate is 4.50% with Principality.
Mike
Posted on 04 January 2010 | Love 0 loves Report
272

Swarbs posted
In general, when you invest in trusts there are no diversification costs, as all costs are in proportion to the size of the investment. If you invest £100 in one trust you pay a certain proportion of the £100 in costs, and if you invest it in four trusts you pay a quarter of the costs to each trust hence the total costs stay the same. The caveat is of course that different trusts may have different percentage charges for the initial investment and annual management charge. So choose the cheapest trusts from each area you want to invest in. In general, the minimum you can invest in each trust is about £25 as a regular lump sum each month or £100 as a lump sum. So that's your minimum scale to diversify your investments.
Posted on 04 January 2010 | Love 0 loves Report
7

compound200 posted
thx everyone
much appreciated
manz i hope your investments hav helped you out for a healthy retirement
Posted on 05 January 2010 | Love 0 loves Report
410

manzanilla posted
oh yes :))))
manzanilla
Posted on 05 January 2010 | Love 0 loves Report
7

compound200 posted
say save 2k a time manz
put in a isa fund or share for longterm
how many shares/fund did u hold at one time?
Posted on 10 January 2010 | Love 0 loves Report