Originally published at: LISTEN: Our Head of Investments on everything you need to know about investing – InvestEngine blog
In late March, InvestEngine’s Head of Investments, Andrew Prosser, went on That Investing Podcast to discuss all things investing as we look ahead to the 23/24 tax year. The wide-ranging discussion covered everything from how ISAs work to how investors can utilise ETFs as part of their wider investment strategy.
You can listen to the podcast in full using the player above. In the meantime, here are some of the key takeaways from the interview:
- You can spread your ISA investments across different types of ISAs. You can only invest into one stocks and shares ISA each tax year, but you can also put money into a cash ISA, or a junior ISA, without losing the tax benefits, so long as the total amount invested in the tax year doesn’t exceed £20k.
- The choice between a managed and DIY portfolio is entirely personal. When it comes to the choice between building your own portfolio and having an expert manage it for you, there is no ‘better way’ to invest. Ultimately, it comes down to the time and inclination you have to want to do the research yourself and monitor your portfolio regularly. For many, it’s simply more convenient and reassuring to have a professional at the helm.
- Consider your time horizon when choosing what to invest in. If you’re saving for a house and want to buy in the next three to five years, for example, a high risk stocks and shares ISA wouldn’t make sense – ideally, you’d keep your savings in something safe, like cash. When the time horizon stretches out to 10+ years, however, it’s the more “exciting end of the spectrum”, like stocks and shares that can give an investor the chance to see their wealth grow.
- Don’t be drawn in by “flashing lights and inducements to trade”. The popularisation of trading platforms – which often make money based on the amount of times people trade – has led to people over-trading. When investing for the long-term, it’s better to take a more empirical, academic approach to investing. At InvestEngine, “we take this kind of disciplined longer term approach, basing decisions on long-term data, which we invented peer reviewed by academic institutions, independent industry, research companies, things like that.”
The discussion then touches on everything from ESG (socially responsible) investing to why ETFs are a great investment vehicle for long-term investors. We recommend giving it a listen!
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.