Is it best to diversify or to pick out shares?

Question

You will pay about £10 a pop every time you buy a share. Which makes no sense for smaller investments – you’re under water by a significant  % before you have started. I also think investing is one of those things where a little knowledge is a dangerous thing.

Holly Mackay · Accepted Answer

Hi Richard

You will pay about £10 a pop every time you buy a share. Which makes no sense for smaller investments – you’re under water by a significant  % before you have started.

I also think investing is one of those things where a little knowledge is a dangerous thing. I include myself in that. I don’t invest in any shares as I can’t keep up with them. I think it’s too risky. I’d rather pay a boffin who spends all day staring at screens!

You sound like you have a good balanced chunk of investments which have spread the risk around in shares. If I were you I would top up existing funds OR think about a low-cost passive ‘multi-asset fund’ such as the Vanguard LifeStrategy range. And then leave it alone. Buying a portfolio of 20 shares could be a nightmare. You’ll overlap with some you own already in your funds and you’ll lose a lot in trading fees.

Just an opinion….!

Good luck
Holly