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If I had £10,000 to start investing FTSE 250 Shares What to buy today?
Smaller companies in the FTSE 250 can be riskier than their larger cousins in the FTSE 100. For this reason, we have a certain reason.
I still only buy from companies I really like. I wouldn’t buy anything I thought that way – so just to pad the numbers.
Choosing 10
By spreading my £10,000 across 10 different stocks, I think I’ll get good diversification without paying too much. Looking at the mid-cap stocks in the FTSE 250, I think I’d be happy to hold the following 10 for at least 10 years.
| Company | Latest price | Forecast P/E | Forecast division |
| A group of people | 243 p | 7.3 | 5.2% |
| Hotline group | 208 p | 9.8 | 12% |
| Murray Income Trust | 797p | 5.3 | 4.5% |
| Bellway | 1,919 p | 6.1 | 6.6% |
| ITV | 63 p | 5.8 | 8.0% |
| Royal Mail Group | 223 p | 6.1 | 8.5% |
| Primary health characteristics | 128 p | 13 | 4.9% |
| Supermarket Income REIT | 115 p | 8.7 | 5.1% |
| Sintomer | 168 p | 6.2 | 7.4% |
| Darkness | 363p | n/a | n/a |
Long-term residence
I definitely want a FTSE 250 homemaker. In the long run, I don’t see how they’re going to lose, given the chronic housing shortage we have. And when stocks are falling and looking cheap, isn’t it the best time to get in?
Further analysis is required. But the valuation and distribution prospects make Bellway a strong candidate. I consider options as much as possible. Repeat And Vistry Group (Former Bovis Houses).
Finance is key.
I also need a bank or an insurance company. I think the financial sector is the foundation of the economy and should do well in the long run. Straight line is my choice here. Direct Line shares are down 30% in the past 12 months, and could fall further. But now to buy and not to touch for 10 years, entered.
I added a who’s who of hedge fund managers because I think the investment management industry is so pushed.
Risky investment trust
I would never be without an investment trust. They provide diversification in one investment. And they help keep you safe.
I went to UK-focused Murray Income Trust, which has raised its dividend every year for 49 consecutive years. The current yield of 4.5% looks attractive. Possible options include: Faith of the Alliance And Trust of bankers. Both are global in outlook, and both have grown their divisions for 55 years.
I also include two real estate investment trusts (REITs), Primary Health Properties and Supermarket Income REIT, that I currently see as good value. I might be a little heavy in real estate, so maybe I’ll switch from those to alliances or bankers.
A dangerous choice
Wait, what is Darktrace doing in another conservative portfolio? The cyber security specialist is a pure growth share, and I’m happy to commit at most 10% to that type of investment. Shares are down 60% in 12 months, so the risk should be low now.
There are risks in all of these choices, and I wouldn’t buy any without more research. But this sounds like a good start to me.