TONY HAZELL The Prudent Investor

THE biggest mistake first-time investors make is to have too much in the UK.

FTSE tracker funds may be cheap but historically have tended to lag behind the U.S. in particular.

Drip money in gradually rather than parting with a large lump sum so you don’t get spooked by a sudden market fall.

See falls as a buying opportunity rather than crystallising losses by selling.

That said, review your holdings regularly, adjust where necessary, and don’t be afraid to sell so-called star managers.

Vanguard Global Equity gives decent worldwide exposure without having too much in any one share.

It has underperformed its benchmark over the past year but is still up by 13.6pc. Last year it outperformed, returning 24.6 pc. Charges are low at 0.48 pc a year. Just over half the portfolio is in the U.S, with about 6 pc each in Japan, the UK and the money market.

The biggest holding is Google-owning Alphabet, but even this is only 1.65 pc of its portfolio.

My favourite holding is Scottish Mortgage investment trust. Over five years it has turned every £1,000 into more than £4,500.

But the share price is currently running almost 4 pc over the value of the shares it holds, so you pay a premium to buy it, increasing the risk.

Investments are based on the convictions of the managers. They include Moderna, almost 8 pc of the portfolio, Tesla and geneticsequencing firm Illumina. Its quoted charge is 0.34 pc.

Long-time joint manager James Anderson retires at the end of April, but the succession looks wellplanned with Tom Slater becoming lead. FIRST FUND TIP: Vanguard Global Equity. Return on £10,000 after five years: £18,413.