Vanguard life strategy - return

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catoutthebag
catoutthebag Posts: 2,216 Forumite
in Savings & investments
Hi I opened my vls 60 via Charles Stanley direct 2 and a half years ago with 1000 pounds. It's up about 25% since with dividends reinvested.

Would you this be considered a good return, so far?
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  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    Would you this be considered a good return, so far?

    Relative to what?

    Its not as good as some things. Its better than others. Its not as good as HSBC's equivalent which is the closest match possible in terms of asset mix and in that same period our closest model portfolio in terms of risk returned 36.3% (vs 24.65 for VLS and 26.89 for HSBC).

    2.5 years is insufficient. you need to look over an economic cycle really and that is closer to 10 years.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • catoutthebag
    catoutthebag Posts: 2,216 Forumite
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    dunstonh wrote: »
    Relative to what?

    Its not as good as some things. Its better than others. Its not as good as HSBC's equivalent which is the closest match possible in terms of asset mix and in that same period our closest model portfolio in terms of risk returned 36.3% (vs 24.65 for VLS and 26.89 for HSBC).

    2.5 years is insufficient. you need to look over an economic cycle really and that is closer to 10 years.

    Relative to similar investment funds I could have put it in...to me it seemed very good, but I'm not aware of how well it could have done elsewhere.

    I understand I need longer (this will be 20 years maybe for me, subject to change), but would you recommend moving it the HSBC?

    I chose vls as it was most widely recommended for beginners to lock away and not worry about and with a good mix, when I searched here
  • catoutthebag
    catoutthebag Posts: 2,216 Forumite
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    I was also suprised as I kept hearing 10-15% average annual growth for stockS and shares trackers
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    catoutthebag wrote: »
    I was also suprised as I kept hearing 10-15% average annual growth for stockS and shares trackers

    That fund will likely end up closer to 5.5% to 7.5% p.a. long term. (as much as you can predict these things, that is the expectation based on current inflation). You have to include the negative periods as well and not just a period that had an unusual growth spurt due to a sudden devaluation in Sterling.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Bravepants
    Bravepants Posts: 1,503 Forumite
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    I always assume 5.5% growth of my portfolio (70% equity tracker funds, 30% bond funds a mix of VLS 60 and Fidelity Global), I would rather be pessimistic with my plans for retirement.
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • catoutthebag
    catoutthebag Posts: 2,216 Forumite
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    dunstonh wrote: »
    That fund will likely end up closer to 5.5% to 7.5% p.a. long term. (as much as you can predict these things, that is the expectation based on current inflation). You have to include the negative periods as well and not just a period that had an unusual growth spurt due to a sudden devaluation in Sterling.

    What funds do you think will do better? And I guess at such low returns am I best maxing out more of the highest savings, etc, peer to peer etc then?
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    catoutthebag wrote: »
    I was also suprised as I kept hearing 10-15% average annual growth for stockS and shares trackers

    You might get that if inflation hits 8-10%.
  • IanSt
    IanSt Posts: 366 Forumite
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    catoutthebag wrote: »
    I was also suprised as I kept hearing 10-15% average annual growth for stockS and shares trackers

    I suspect you have either been listening to the wrong people or are misremembering what they said.

    An average fund may well make 10-15% over a short period of time (especially if there has been a £ depreciation at the same time), but do not expect to see such returns after inflation over the longer term.
  • economic
    economic Posts: 3,002 Forumite
    edited 30 November 2017 at 11:51AM
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    ive been buying lifestrategy 100% version since about 2 years ago and im up 30-35%. i have recently sold to lock in the profits. will buy back in at hopefully lower levels.

    i have other various funds and single stocks which i have kept. the main reason i sold vanguard fund is that i see a gbp rally extend quite a bit which would hurt the fund quite a bit.
  • Prism
    Prism Posts: 3,803 Forumite
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    IanSt wrote: »
    I suspect you have either been listening to the wrong people or are misremembering what they said.

    An average fund may well make 10-15% over a short period of time (especially if there has been a £ depreciation at the same time), but do not expect to see such returns after inflation over the longer term.

    Like you say that would be an average fund, but we don't need to pick an average fund if we can find an excellent fund. An anual growth of 10-15% is actually fairly common over the last 10 years. Over the last 5 years its more like 15%-20%. Assuming 100% equities and a decent fund manager.
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