How I’d invest £1,000 in UK shares right now Image source: Getty Images
Starting to invest in UK shares doesn’t require a huge amount of money. Sometimes one may have a lump sum, big or small, and decide to put it to work in UK shares. If I had £1,000 to invest in UK shares right now, here is what I would do.
Risk management
If I had £1,000, I wouldn’t want it to be eaten up by brokers’ fees due to spreading it very widely. I’d try to find a competitively priced broker, but I would also focus the money on just one or two investments. That involves some risk as it means that my investment wouldn’t be very diversified. There are two ways to manage this risk.
UK stock investing: my 2 contrarian picks for 2021 Image source: Getty Images.
The end of the pandemic appears near. This means that UK stock investing could change as companies’ prospects alter. In fact, it already is changing.
Stocks popular during the Covid-19-driven lockdowns have fallen out of favour with investors as animal spirits return to the stock markets. Bullish investors have been chasing up share prices of beaten down UK stocks.
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I think it is entirely possible that the share prices of aviation, travel, and tourism stocks, for instance, will continue to rally. At the same time, otherwise safer stocks will continue to show sideways movements at best.