Best way to invest in equity? (outside of a pension)

Im interested in this too.
Back at the start of the last recession there were solidarity bonds on offer that paid 50% after 10 years.
I wonder if similar will be available soon?
Its the whole tax situation that puts me off investing in ETFs. Far too fiddly and murky.

And I was looking at this page.


So investing a regular sum into one of or more of these would take care of taxation for you? What are the downsides? High charges?

Do you just create an account pick a fund a monthly amount and off you go? No yearly tax returns to worry about?
Or am I missing something? I probably am.

Thanks.

PaxmanK said:

So investing a regular sum into one of or more of these would take care of taxation for you? What are the downsides? High charges?

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Higher charges, and 1% government levy on all investment. But tax is dealt with at source.
I save some money through a similar product, putting money in monthly. Money is taken by DD, I don't have to worry about buying or selling anything, the temptation to try time the market, and no tax returns.

PaxmanK said:

Back at the start of the last recession there were solidarity bonds on offer that paid 50% after 10 years.
I wonder if similar will be available soon?

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Not a hope!

Government is paying close to 0% to borrow on the markets.

FireDuck said:

I'm looking for the best way to invest in a diversified portfolio of equities (outside of a pension).
Ideally something similar to a world index like the MSCI World Index.

I've looked into:

• Passive index tracking ETF's.
• Buying into an investment trust (treated liked stocks as far as I know).

The investment trust seems to be the way to go.

Are there other ways to get into a low cost broad based equity fund or is the investment trust the way to go?
If so any information on IT's that you have would be helpful.

____________________________________________________________________

Below is my research on places I could invest.

Passive equity index ETFs (taxation is too high)

• ETF's are not tax efficient.
• They are taxed with exit tax on gains every 8 years.

Investment Trust

• Investment trusts seem to be treated as stocks rather than unit linked funds (meaning you get taxed with CGT rather than Exit Tax, and no deemed disposal).
• There are IT's out there that are diversified and have a low expense ratio (such as FCIT (F&C Investment Trust)).

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nad said:

Hi Fireduck
Im just wondering if you just have invested in any funds yet or are you still gathering ideas as i'd be interested to know what your conclusions were..

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yygaurav said:

HI @FireDuck

Did you make any progress on this? I am interested to find out about it.

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Also looking for any progress or updates!

Lisboa said:

Also looking for any progress or updates!

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FireDuck said:

I'm looking for the best way to invest in a diversified portfolio of equities (outside of a pension).
Ideally something similar to a world index like the MSCI World Index.

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llgon said:

I've paid my few euro to have a look at Marc's guide.
Did you make a decision on IT's?

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Me too!

nad said:

Hi Fireduck
Im just wondering if you just have invested in any funds yet or are you still gathering ideas as i'd be interested to know what your conclusions were..

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yygaurav said:

HI @FireDuck

Did you make any progress on this? I am interested to find out about it.

Another question: Does this make sense after a person has maxed out on a pension? ( can this option be considered for long term investment)

thanks a million

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Precisely what I am looking at aswell? If anyone made decisions on it.

Silvius said:

I'm also interested in finding out more about this. For anyone out there that has gone down the road of investment trusts as a solution to equity investment outside a pension, how did you pick them and how many trusts would make up a diversified portfolio?

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This is my question also, I'd like to find ijt the best ones and whether people have picked one like the Scottish Mortgage Trust abd gone all in or diversified in a few of them?

Lisboa said:

Also looking for any progress or updates!

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Great thread, thanks to all who contributed!

yygaurav said:

HI @FireDuck

Did you make any progress on this? I am interested to find out about it.

Another question: Does this make sense after a person has maxed out on a pension? ( can this option be considered for long term investment)

thanks a million

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This only makes sense after you've maxed out your pension really.
The pension is a way to invest without being taxed for decade (and then it's income tax, not CGT and deemed disposal),
Once your pension is maxed out and you're looking for ways to grow wealth and you don't want a mortgage, investing in something like an Investment Trust seems like a good option (as you don't trigger deemed disposal as it's a stock, and you have nice diversification like an ETF).

Lisboa said:

Also looking for any progress or updates!

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Younginvestor93 said:

Me too!

Precisely what I am looking at aswell? If anyone made decisions on it.

This is my question also, I'd like to find ijt the best ones and whether people have picked one like the Scottish Mortgage Trust abd gone all in or diversified in a few of them?

Great thread, thanks to all who contributed!

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No progress as of yet, I've been reading up on individual stock picking (this is more fun money, not a huge amount) to spend my extra cash on.
Still staying away from the ETFs, but I still think the UK Investment Trusts are a good idea.

I was advised lately to transfer money from a couple of cautiously managed funds in Standard life and Zurich (as they no longer get active management) and will more than likely lose money over the next few years. I transferred those investments into the same company's , Zurich's Prisma 4 and Standard Life's My folio market 111. I do understand i'm taking a chance with more risk, but the cautiously managed funds are mostly in Goverment bonds, Banks, etc and I reckon the advise I got was good. Anyone have some insight on this and their opinion please. Just seems that at the moment with practically no interest to be earned out there that funds are a goodish way for the amateur investor to do ok.