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  • FIRST POST
    • verdan
    • By verdan 19th May 17, 11:25 AM
    • 1Posts
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    verdan
    Moneyfarm poor performance?
    • #1
    • 19th May 17, 11:25 AM
    Moneyfarm poor performance? 19th May 17 at 11:25 AM
    Hello,

    I am new to investing. I have been using Moneyfarm with a balanced portfolio for 3 months and the performance has been -1% to -2% since then. There has not been a day when the performance was at least 0.

    I understand that I need to be thinking long-term with S&S but I also wonder for how long do I need to be patient.

    How did other robo-advisers perform over this period?
Page 1
    • eskbanker
    • By eskbanker 19th May 17, 12:02 PM
    • 5,631 Posts
    • 5,468 Thanks
    eskbanker
    • #2
    • 19th May 17, 12:02 PM
    • #2
    • 19th May 17, 12:02 PM
    I understand that I need to be thinking long-term with S&S but I also wonder for how long do I need to be patient.
    Originally posted by verdan
    About five years, maybe ten.

    If you're concerned about a percentage point or two (over a short time period) that are no more than rounding errors in the general scheme of things then you perhaps need to reconsider if investing is right for you, as there will significantly larger fluctuations ahead....
    • dunstonh
    • By dunstonh 19th May 17, 12:56 PM
    • 89,851 Posts
    • 55,457 Thanks
    dunstonh
    • #3
    • 19th May 17, 12:56 PM
    • #3
    • 19th May 17, 12:56 PM
    I have been using Moneyfarm with a balanced portfolio for 3 months
    An economic cycle is around 10 years. In that period you will get a number of negative years, positive years and nothing years. That is how it works.

    So, your 3 months is insignificant and you shouldnt be looking at it that closely.

    How did other robo-advisers perform over this period?
    The expectation would be the values being broadly similar to what they were 3 months ago. In that period it would have ranged around +2% up to 1.25% down depending on the risk profile based on our robo-advice option. The full advised portfolios we run are up by about 2-3% per risk profile on top of those.
    You have only posted a very little information but you do highlight the risks of robo-advising services. i.e. people not understanding what they are doing or how these things work not getting the information they need.
    Last edited by dunstonh; 19-05-2017 at 12:59 PM.
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