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  • 17-04-2019 12:55pm
    #1
    Registered Users Posts: 92 ✭✭ ozil10


    Have set up a Degiro account
    Here’s what I’m thinking in terms of an allocation for etf fund
    My knowledge is quite poor so would be very grateful of any recommendations of etfs in each category


    US Equities
    30%



    European Equities
    20%



    Small Caps

    10%

    Global bonds
    15%


    EM Credit

    10%



    Gold

    10%



    Property

    5%


Comments

  • Moderators, Business & Finance Moderators Posts: 7,841 Mod ✭✭✭✭ Jim2007


    What are you trying to achieve? And what kind of size portfolio are we talking about? A small portfolio spread out over so many asset classes will not fair well even when on sector is doing well.


  • Registered Users Posts: 92 ✭✭ ozil10


    Will be investing 2000 first day
    And another 2000 every two months
    Will be tilting the portfolio to the riskier end of town. But having said that I need to assess the macro environment – I think we currently in a low growth low inflationary environment but I think it could turn quite quickly to high growth over the coming months.
    Time frame would be over 5 years
    And reviewing every two months to see how the fund is tracking


  • Moderators, Business & Finance Moderators Posts: 7,841 Mod ✭✭✭✭ Jim2007


    To start with a five year time span is the minimum period for investing in anything other than cash....

    The second thing is that the portfolio is way to small to hold so many positions. Any gains you might make will get wiped out between transaction fees and management fees. Remember the financial institutions are there to make their money, not to make you rich.

    You would be best served by banging it all into some thing like the MSCI World Index and have done with it. Also keep your trading costs to a minimum by purchasing only once every six months or so when you have accumulated 5k or so in savings.

    In doing so you should follow a DCA (Dollar Cost Averaging) strategy.


  • Registered Users Posts: 92 ✭✭ ozil10


    Jim2007 wrote: »
    To start with a five year time span is the minimum period for investing in anything other than cash....

    The second thing is that the portfolio is way to small to hold so many positions. Any gains you might make will get wiped out between transaction fees and management fees. Remember the financial institutions are there to make their money, not to make you rich.

    You would be best served by banging it all into some thing like the MSCI World Index and have done with it. Also keep your trading costs to a minimum by purchasing only once every six months or so when you have accumulated 5k or so in savings.

    In doing so you should follow a DCA (Dollar Cost Averaging) strategy.
    Curious to know what you think would be a sufficient amount to Invest to hold those positions


  • Moderators, Business & Finance Moderators Posts: 7,841 Mod ✭✭✭✭ Jim2007


    ozil10 wrote: »
    Curious to know what you think would be a sufficient amount to Invest to hold those positions

    If you have to implement the asset allocations and rebalancing yourself then probably at least 250k or more. But you also would not got from a single World Index position to several positions in one jump. Say somewhere around 70k or so you add some bonds or maybe add the MSCI Europe index to weight it more towards Europe and so on.

    Starting out you need to be very careful about transaction costs and management fees. And the MSCI World Index give you a fairly good exposure at a reasonable cost.


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  • Registered Users Posts: 91 ✭✭ feartheclaw


    Jim2007 wrote: »
    To start with a five year time span is the minimum period for investing in anything other than cash....

    The second thing is that the portfolio is way to small to hold so many positions. Any gains you might make will get wiped out between transaction fees and management fees. Remember the financial institutions are there to make their money, not to make you rich.

    You would be best served by banging it all into some thing like the MSCI World Index and have done with it. Also keep your trading costs to a minimum by purchasing only once every six months or so when you have accumulated 5k or so in savings.

    In doing so you should follow a DCA (Dollar Cost Averaging) strategy.

    There's quite few MSCI ETFs listed on Degiro - any recommendation on which one? Thanks


  • Moderators, Business & Finance Moderators Posts: 7,841 Mod ✭✭✭✭ Jim2007


    There's quite few MSCI ETFs listed on Degiro - any recommendation on which one? Thanks

    I don't have access to Degiro, but the one I suggested was MSCI World Index...


  • Registered Users Posts: 4,746 ✭✭✭ c.p.w.g.w


    How does CGT work on these funds. Do you only pay it when you sell up?


  • Registered Users Posts: 91 ✭✭ feartheclaw


    Jim2007 wrote: »
    I don't have access to Degiro, but the one I suggested was MSCI World Index...

    Yes, but would there be a preference for accumulating or distributing and in what currency / exchange?


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