I could use some advice! I currently have 11 individual stocks and 5 ETFs, and I’m feeling a bit overwhelmed. I just started trading last week and made a 7% return, which is roughly £10—nothing to write home about, but it’s a start!
My investment strategy is focused on the long term; I’m aiming to save for a house deposit, which means I need to accumulate at least £60k. Fortunately, I have plenty of time over the next four months to track my stocks daily.
I’m considering investing an additional £2k – £10k this year. My main question is whether I should sell my individual stocks now and shift everything into ETFs. I do have some limitations on my options due to personal beliefs, but I’m currently invested in MSCI, Wahed FTSE, Invesco Physical Gold, and iShares MSCI.
I appreciate any advice you can offer! Thanks!
One response
It sounds like you’re off to a solid start with your investments, and it’s great that you have a clear goal in mind! Here are some thoughts to consider regarding your current portfolio and your plans moving forward:
Evaluate Your Individual Stocks: Take some time to analyze the performance of your individual stocks. Are they companies with strong fundamentals, or are they more speculative? If they have potential for growth and align with your long-term goals, you might want to hold onto them, especially if you have conviction in their future performance.
Diversification with ETFs: ETFs can provide instant diversification and often come with lower risk compared to individual stocks. If the ETFs you’re considering align with your investment philosophy and religious beliefs, they can be a good way to spread your risk, particularly as you aim to build a significant amount for a house deposit.
Timing the Market: Since you mentioned you have time to monitor your investments, it might be worthwhile to watch for any short-term opportunities or trends in the individual stocks you hold. However, keep in mind that timing the market can be tricky and often leads to poorer long-term results if you’re not careful.
Dollar-Cost Averaging: If you decide to invest more money this year, consider dollar-cost averaging. This means spreading out your investments over time rather than investing a lump sum at once. This approach can help mitigate the impact of market volatility.
Aligning with Your Goals: Since your ultimate goal is to save for a house deposit, make sure your investment strategy aligns with that. If you’re investing for the long-term, keep with investments that can grow over time, but also be mindful of the liquidity you might need when it comes time to buy your home.
Continuous Learning: Since you’re just starting out, continue educating yourself about both individual stocks and ETFs. Follow market news, read financial articles, and perhaps consider resources focused on value investing or whichever strategy aligns with your beliefs and goals.
Ultimately, the decision to sell individual stocks and invest more heavily in ETFs should be based on your personal risk tolerance and investment philosophy. It’s great that you’re thinking critically about your investments; just make sure whatever course of action you choose aligns with your long-term goals. Good luck!