This post has been de-listed
It is no longer included in search results and normal feeds (front page, hot posts, subreddit posts, etc). It remains visible only via the author's post history.
Hi fellow investors,
I am fairly new to the investment world and I just wanted some advice from anyone who has a bit more experience than someone like myself.
I have some investments in the fundsmith equity T class acc ISA fund and I also hold individual shares which include easyJet,IAG and Avacta group plc.
I am able to save about £2k a month with the aim of buying a property within the next year.I have been doing some research on investment opportunities for the upcoming year using 50% of my monthly savings and I am considering the following options.
1) Open a LISA as well as stocks and shares ISA account to take advantage of 25% government bonus.
2) invest in some of Ballie Gifford equity funds, in particular the American and Pacific B Acc funds.
3) invest in Etfs which I need to look into more depth.
I appreciate your comments and advices in advance.
No matter your risk appetite, if you need the money within the next 3 to 5 years, don't invest it in the stock market in any capacity - including in any sort of fund.
The stock market is great for gains over the long term. 12 months is not the long term as far as investments go. It is absolutely not worth risking your money if a house purchase is on your mind in the near future.
Subreddit
Post Details
- Posted
- 3 years ago
- Reddit URL
- View post on reddit.com
- External URL
- reddit.com/r/UKInvesting...
I do see where you're coming from but I really don't think that I'm overstating risk here. I don't think that anyone at all should be putting money into the stock market unless they're happy to put it away and potentially not touch it for 3 to 5 years.
Past performance isn't indicative of future performance, and nobody can put a figure on chances of gains for a future year.
Taking a look over the past few years though, FTSE 100 dropped 14% in 2020 alone. It was down 13% in 2018. Obviously this is a bit further in the past, but FTSE dropped 30% in the crash of 2008. Would I literally bet a house deposit on FTSE (or indeed any other index) being up in a year from now? No, absolutely not, especially given the times we're in. Will it be up in 3 to 5 years, or even longer if needs be? Almost certainly.
Short term investments can be hit very hard by market risk. Investors need to at least be prepared to wait out bumps in the road out if any appear - indeed, the market is very susceptible to relatively short term shocks. If your hands are tied by a future commitment (e.g. a house sale), you don't have that flexibility. It's great looking back and seeing at what points in time a year would have been ok... but we're not in the past.
It's OP's decision to make, and of course they could be up in a year as well as down. If OP has assessed the risks and is happy with it, that's on them. But my advice to literally anyone on this planet is the same and crystal clear: don't put money into the stock market unless you're happy to potentially wait for the long term.