Hi.. I'm after help with deciding which Vanguard fund to invest in in the UK.
I have never invested in stock and shares before, nor has anyone in my family.
We plan on investing in two accounts, using a stocks and shares ISA from HL for us and a junior stocks and shares ISA from HL for our 3 months old money which he will get access to at 18.
My son does not have much money to invest (£100s but not £1000s) (he is 3 months old so I don't know why he has any to be honest!) and we have no idea how much he will be given over time. We are sort of using his money to learn with, we see no point putting it into a normal savings account or ISA as the return will be minimal, and we have decided to guarantee the amount he has in his account + a 2% interest rate for the next 18 years with our own money, so even if his account loses money for some reason, he will not. Hopefully it will increase more than this!
We plan to learn how it all works from this, and adjust as necessary, eventually we plan to invest our money once we have paid down our mortgage as much as we can / want to.
I can't link to the vanguard funds at HL but they can be searched for here:
http://www.hl.co.uk/fundsCurrently I plan on investing in
http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-us-equity-index-income which is a US equity index fund.
Everything I have read and can understand seems to suggest this is a good decision, although not necessarily the best.
Obviously the highest return possible would be ideal, but we also need some security and simplicity (being new at it), at this time I'm not too bothered if I can save fees elsewhere etc.
Is my decision wrong or flawed? Should I be doing something else? Is there anything I should know that it sounds like I haven't thought about? Any other help?
Thanks for your help!