A reader from Lincolnshire wants to spread his investments more widely than a handful of stocks.
Karen Crowshaw, Halifax Bank investments expert, tackles the problem.
David from Grantham asks:
I have £5,000 invested in a FTSE 100 stock, but I would like to diversify my investment.
I am not sure I want the hassle of keeping track of shares of more than one stock.
What should I do?
You may wish to consider a collective investment which is managed by a professional fund manager, who will buy and sell a number shares on your behalf.
Your money will be pooled with that of other investors in order to spread the cost and provide greater purchasing power.
Tracking the fund’s performance is done by monitoring the unit price. These are listed in good quality newspapers and online.
In order to assess which fund(s) is most appropriate to you, it would be best for you to speak to a Financial Adviser for a no-obligation review.
If you have a question for Karen, go to the myfinances.co.uk Ask the Investments Expert section
Or for more information on your investment options go to investments at Halifax.
Twitter: My Finances
Join the conversation at #news_myfinances