Funds suggestions

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whambamboo
whambamboo Posts: 1,287 Forumite
in Savings & investments
Any thoughts?

Here's my first draft.

This is for £20k, for long-term growth

Fidelity South East Asia £1000
Gartmore China Opportunities £1000
HSBC Japan Index £2000
Invesco Perpetual Latin American £1000
Invesco Perpetual High Income £4000
Invesco Perpetual Income £3000
Premier Pan European Property £2000
Jupiter Emerging European Opportunities £2000
JP Morgan Natural Resources £1000
Schroder US Smaller Companies £1000
Marlborough Special Situations £2000

Any suggestions/funds to add/drop? I'd like to invest in India, but can't find anything though.
My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
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Comments

  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    Can I suggest you look at this site which rates the funds by performance ?

    http://www.citywire.co.uk/Funds/Home.aspx

    IMHO it's good to look at funds with a really long term consistent record ( eg 10 years) with top ten returns in each time period.

    Is there much point in choosing both IP equity income funds?
    Trying to keep it simple...;)
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    EdInvestor wrote:
    Can I suggest you look at this site which rates the funds by performance ?

    http://www.citywire.co.uk/Funds/Home.aspx

    IMHO it's good to look at funds with a really long term consistent record ( eg 10 years) with top ten returns in each time period.

    I did look there. That's where I chose them from :-). I chose the funds with good records, and because I fancied certain sectors.
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    btw, can I clarify that in an accumulation OEIC or UT the dividend yield is treated as pure capital gains? So there's no reason to hold any one of these investments inside the ISA wrapper.
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • mroller
    mroller Posts: 397 Forumite
    First Post First Anniversary Combo Breaker
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    whambamboo wrote:
    btw, can I clarify that in an accumulation OEIC or UT the dividend yield is treated as pure capital gains? So there's no reason to hold any one of these investments inside the ISA wrapper.


    why so? is it because you can put them in a normal account and provided you don't exceed 8800 in capital gains you dont get taxed?
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    mroller wrote:
    why so? is it because you can put them in a normal account and provided you don't exceed 8800 in capital gains you dont get taxed?

    I mean if fund A yields 5%, and fund B yields 2%, other things being equal, with both being income funds, it makes sense to hold fund A inside a tax-free wrapper, as the tax saving would be much larger.

    However, if it's an ACC fund, I don't actually receive any income so there's no income tax to be paid, so it makes no difference if I choose to hold fund A in the ISA or fund B.
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    whambamboo wrote:
    btw, can I clarify that in an accumulation OEIC or UT the dividend yield is treated as pure capital gains? So there's no reason to hold any one of these investments inside the ISA wrapper.

    No, it's still treated as dividend income even if it's reinvested.If you are a basic rate taxpayer there is no tax to pay on divis, so you can hold direct - at this level the annual CGT allowance should cover any gains.

    Higher rate taxpayer would have to pay 25% tax on divis, so use the ISA.
    Trying to keep it simple...;)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    EdInvestor wrote:
    Is there much point in choosing both IP equity income funds?
    I'd be interested in hearing the logic behind this decision, as I've looked at both but gone for the High Income fund (Acc).
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    prudryden wrote:
    Wham - the biggest India Fund is the Morgan Stanley India Fund (IIF) listed NYSE. Steady uptrend since June $36 to $52. With the pound so strong vs. USD - you can buy a lot more for your dosh. Market Edge says fund is a buy with a stop loss at $48.80.

    Not sure the logic of that. If you're buying Rupee-denominated shares, converting to US$ first isn't going to help. You just introduce an extra cost in converting currency twice, from rupee->USD-> GBP, rather than just rupee-GBP.

    I'm buying this one, for some reason it didn't show up on Trustnet.

    http://www.fidelity.co.uk/direct/select/fidelity/asian/indiafocus.html

    Can't see much logic in a stop loss on a fund either. You're going to get a lot of volatility in these markets, and they are based on 50-200 shares, so all you're doing is selling at the bottom of the market: it's got to be a long term hold.

    BTW, I'm sticking with OEICs and UTs.

    Can anyone tell me if the tax treatment of this fund, which is offshore (Luxembourg) is any different from UK OEICs?
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    YorkshireBoy wrote:
    I'd be interested in hearing the logic behind this decision, as I've looked at both but gone for the High Income fund (Acc).

    Not sure which to go for. They perform near identically. Over the last five twelve-month periods:

    26.70% 26.32% 21.67% 17.23% -6.64% High Income
    26.63% 25.30% 21.61% 16.83% -7.40% Income

    High Income is very slightly better, but IMO it's not statistically significant.
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    Here's the past performance on these funds:
    Fund				Value	Type	Cap/£m	Charge	TER	0-12 mths	13-24 mths	25-36 mths	37-48 mths	49-60 mths
Gartmore China Opportunities	£1,000	OEIC	£216	0.25%	1.45%	38.26%	9.67%	16.21%	57.55%	-16.41%
Jupiter Emerging European Opps	£2,000	UT	£469	0.25%	1.72%	25.83%	54.15%	50.52%	31.98%	
Premier Pan-European Property	£2,000	OEIC	£27	0.00%	1.69%	35.15%	12.60%	19.36%	38.86%	-36.56%
Fidelity India Focus Fund	£1,000	OEIC	£1,650	0.50%	1.95%	30.38%	58.11%			
HSBC Japan Index	£2,000	OEIC	£114	0.00%	0.65%	-4.26%	32.98%	6.70%	10.92%	-21.07%
Invesco Perpetual Latin America	£1,000	OEIC	£98	0.00%	1.47%	18.64%	76.08%	33.65%	63.77%	-27.09%
JP Morgan Natural Resources	£1,000	OEIC	£762	0.25%	1.38%	31.07%	33.80%	28.83%	90.51%	15.15%
Fidelity South East Asia	£1,000	OEIC	£551	0.50%	1.58%	23.31%	36.77%	8.16%	11.95%	-11.55%
Invesco Perpetual High Income	£3,000	OEIC	£6,450	0.00%	1.44%	26.70%	26.32%	21.67%	17.23%	-6.64%
Invesco Perpetual Income	£3,000	OEIC	£4,009	0.00%	1.44%	26.63%	25.30%	21.61%	16.83%	-7.40%
Marlborough Special Situations	£2,000	UT	£120	1.00%	1.34%	20.71%	19.82%	36.23%	75.36%	-23.56%
Schroder US Smaller Companies	£1,000	UT	£402	0.00%	1.44%	25.68%	16.35%	16.38%	30.94%	-11.17%

    And here are my sector allocations:

    Sector Weighting
    China 5%
    Eastern Europe 10%
    European Property 10%
    India 5%
    Japan 10%
    Latin America 5%
    Natural Resources 5%
    SE Asia 5%
    US Small Cap 5%
    UK Equity Income 30%
    UK Small Cap 10%

    Only one I'm not sure about is the property fund. I'd prefer something with less UK property.

    Any suggestions?
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
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