FREETRADE Portfolio Investment Account March 2021
FREETRADE Portfolio Investment Account March 2021

FREETRADE Portfolio Investment Account March 2021

Hi guys, and welcome to the first video in a new series, FREETRADE Portfolio Investment Account March 2021. I thought that it would be interesting to take a brand new investment account and grow it from zero. I plan to share the monthly progress that I make investing in this account.

In this first video we will go over the trading platform I will being using. How much I plan to invest each tax year and where I plan to invest that money.

Why I choose Freetrade as my investment platform?

As I will starting this little project from scratch I was looking for a few things from an investment platform. 

Low trading fees. As I plan to hold around 25 positions in this portfolio and buy often. I wanted a platform that had very low or free trades when buying those shares. When you are just starting out and have a low amounts of capital to invest. Trading fees can take a significant percentage from your capital.

Low FX fees.  As I am planning for the majority of my holdings to be traded outside of the UK. Low FX fees is another area where I am looking to reduce costs.

Fractional shares. These are kind of new to us in the UK. They are where a broker will sell you a portion or fraction of a full share in a company. These are great for new small accounts as you can buy shares in companies that you want even if you don’t have enough capital for buy shares in full.

There are a couple of brokers in the UK that have all of these features, Freetrade does not charge a transaction fee when buying or selling shares.  Where as in my main portfolio Hargreaves Landsdown they charge £5.95 per trade ‘if’ you made 20 trades in the previous month. Freetrade’s FX fee is Spot Rate plus 0.45% which is also better then Hargreaves Landown’s Spot rate plus 1% there are other platforms that have lower FX fees but they are not currently open to new investors. So for these account I have decided to go with Freetrade.

How much capital I plan to put into this portfolio.

In this first video I have only £635 of startup capital invested into Freetrade. £635 may seem like such a random amount but it has to do with my ISA limit for this tax year. Each year in the UK you can add £20,000 to any ISA that you hold. This can be into just one account or it can also be spread between multiple ISA’s. You are just not allowed to go over £20,000 total. £635 is all I have left before the tax year resets in the UK on April 5th.

Once the new tax year starts in the UK I can increase the amount of capital I can put into this Freetrade account. Rather than pushing the full £20k allowance in one large lump sum I will be spreading it out into smaller £1665 a month investments.

My portfolio plan

I have decided to buiild this portfolio with positions in some largest US companies. I wanted to pick big stable companies to invest in. As I don’t want to dilute my capital to far I am limiting myself to 25 companies this year. 25 companies is a nice balance between too many and too few for me. I will also be weighting each company investment a little differently. The larger companies market capitalization the higher a percentage I will put into that company.

Lets take a quick look at the companies I have selected to have in my portfolio.

First company is Apple. One of the largest companies in the US and the world. I am aiming to have 15% of my portfolio will be Applie

Company two is Mircorsoft. Another of the large America tech stocks. This one I aim to just under 14%.

Next is Amazon a pattern is starting to emerge here lots of tech stocks with high percentace in my portfolo, this one is aiming just under 12%

Forth is Alphabet or Google as it is more cominanl;y known, this one is just under 11%

Fith is Facebook, one of the biggest social media platfowms, wieghting in this is just inder 6%

Sixth is my first non tech stock, we have Berkshire Hathaway. On of the old school concolmatiates. Weight is just over 4.5%

Seventh is back to a tech stock we have Tesla wight on this one is also just over 4.5%

Next we have Visa, one of the big credit card companies. Weught is planned at just under 4%

Next we have Masercard on of the other big three credit card comanines. Wighting is just under 3% for this one.

Up next is Disney, I have a weight target of jsut over 2.5%

Next is Unitedhealth Weight is just a tiny bit inder 2.5%. I also got a small divend this month from the small investments I made while settiung up this portfolio.

Nvida is number twelve with just under 2.5% weighting.

Next is Paypal with just under 2.25%

Home depot is my last postion over 2%.

The last eleven holdings for me have a holding between 1.7% and 1% they are the following; Netflix, Nike, Adobe, Salesforce, Broadcom, T-Mobile, Union Pacific, Bristol-Myers, Costco, Nextra Energy, Amgen.

Series plans

Thank you for looking at my FREETRADE Portfolio Investment Account March 2021 .There you have my new account ready for the 2021 financial year and the companies that I will be investing in. I will do an update on how we are getting on each month.

If you did enjoy this video or have any questions please leave a comment down below and I will endever to answer it.

See you in the next one bye.