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Better to buy ETF or diversified stocks?

  • 08-12-2018 1:20am
    #1
    Registered Users Posts: 113 ✭✭ wobatkicker23


    Hi there, new to investing. I was hoping to invest in an index fund that tracks S&P 500 but don't think my gains will be worth paying both CGT and an exit fee.


    What would you say is the best option if I want to start investing my money on DeGiro? I would be looking to start off with an initial lump sum then monthly payments. What would be the best option to minimize fees?


    ( I was thinking buying shares in 10-20 companies in the SP500 I believe in would be enough diversification for steady growth?


    Basically just asking whats the best option for an early 20s person who wants to invest in the stock market without withdrawing money for 10-20 years or even longer.


    Thank you.


Comments

  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    Hi there, new to investing. I was hoping to invest in an index fund that tracks S&P 500 but don't think my gains will be worth paying both CGT and an exit fee.


    What would you say is the best option if I want to start investing my money on DeGiro? I would be looking to start off with an initial lump sum then monthly payments. What would be the best option to minimize fees?


    ( I was thinking buying shares in 10-20 companies in the SP500 I believe in would be enough diversification for steady growth?


    Basically just asking whats the best option for an early 20s person who wants to invest in the stock market without withdrawing money for 10-20 years or even longer.


    Thank you.

    A relatively small number of companies drive all the gains in the market so you have a high chance of picking twenty loosers, you can't beat the market, not over the long term

    Buy the fund and stick in a drawer, all you have to do is not panic sell and you will be richer down the road .


  • Registered Users Posts: 1,434 ✭✭✭ Austria!


    Mad_maxx wrote: »
    A relatively small number of companies drive all the gains in the market .


    This is true.


    Be aware the tax situation around ETFs is complicated and can be arduous if you keep investing regularly..


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