Although I have been living in the UK for one year I started investing in £ only recently. I still think that there are cheaper companies on the Warsaw Stock Exchange but I wanted to diversify my investments. The another reason is the falling GBP/PLN ratio. I have decided that I will not exchange my £ into PLN (Polish currency) while the ratio is below 5.60. This is connected with the possibility of leaving the European Union by the United Kingdom. Till the referendum on June 23, 2016, I do not expect GBP/PLN ratio to go up.
The first step was to open an ISA account. I have chosen an AXA ISA account. The advantage of this ISA account provider is that throughout the first year I do not have to pay any charges to AXA. However, I can invest only in funds and even though there is a wide range of funds, the fact that I am not able to buy stocks and ETFs using this account constitutes some drawback of it.
And I started investing by this ISA account with quite decent results. On the images below, you can see all the transactions since the date I started investing in £ (from a Transaction statement of my ISA account). My first transaction was buying investment fund shares of a Russian market fund.
As you can see, in less than half of February (I bought the fund: Neptune Russia & Gtr Rus C Acc GBP on February 18, 2016), the value of my invested money increased by 5.86%, during March the performance of my wallet equals 7.91%. At the same time, FTSE100 went up 1.28% and 2.1%.
A screenshot from the website myfund.pl which I use to save and monitor my investments:
I have fund investing in Russia market, 2 funds investing in commodities and fund operating on China market. I am reading financial reports of UK stocks so gradually I will add British companies to my portfolio (first, I will need to transfer my money to another ISA account or I will buy stocks using my Private Pension account).
I think there will be a correction of those decent increases on the Emerging Markets at the beginning of April. Anyway, I know that the Russia market is already the cheapest market in the world and I want to have some part of my money invested there.