VLS 60 buying more now ok?

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  • jdw2000
    jdw2000 Posts: 418
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    Whether or not VLS does actually suffer a 30% drop, it's good advice to assume it will and not leave yourself too exposed.
  • jdw2000 wrote: »
    So you've been wrong for the past 8 years about VLS

    Kind of. I held VLS60 for some years but abandoned it in favour of VWRL + cash + commodities at the end of 2014. Underperformed VLS60 in 2015 but outperformed in 2016 and so far in 2017. . But overall, VLS60 would have performed better, yes.
    jdw2000 wrote: »
    but now you're right?

    Even a stopped clock is right twice a day... maybe that hour is approaching... I'm going to stand by my plan!
  • MPN
    MPN Posts: 365
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    I'd go a step further than that. Someone may do better if they keep 40% of their money in their wallet and invest the rest in a 100% fund. Because interest rates *may* rise. If so bond markets *may* unravel over the next few years.

    But not just that. The sterling tide has been going out for a while. At some point maybe we'll reach a low water mark, and the tide will turn. At that point, USD denominated assets will lose value for UK investors who think in GBP.

    If in addition to these things, we see a slump or a crash in equity markets, funds like VLS60 and VWRL are really going to take a whack. That's why I think we could see peak to trough falls of 40-50%. Of course it may not happen. But it seems to me that all the ducks may be getting into a line and personally I'm considering increasing my cash position over the next year.

    I would not buy VLS60 now, although I wish I had been buying it for the last 8 years.

    That's the reason why I don't hold bonds anymore. I much prefer to keep these funds in cash!
  • roxy28
    roxy28 Posts: 670
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    Ok, after reading this thread i am now thinking of buying the VLS40 in my ISA, i have seen this "hold VLS60/20 .mix to make a VLS40? or do i just buy the VLS40.
    I have the ISA with charles stanley direct.
    Can someone advise how i go about these options
    :T
  • jdw2000
    jdw2000 Posts: 418
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    Kind of. I held VLS60 for some years but abandoned it in favour of VWRL + cash + commodities at the end of 2014. Underperformed VLS60 in 2015 but outperformed in 2016 and so far in 2017. . But overall, VLS60 would have performed better, yes.



    Even a stopped clock is right twice a day... maybe that hour is approaching... I'm going to stand by my plan!


    I do love your honesty! :)


    Good man, and best of luck :beer:
  • bowlhead99
    bowlhead99 Posts: 12,295
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    roxy28 wrote: »
    Ok, after reading this thread i am now thinking of buying the VLS40 in my ISA, i have seen this "hold VLS60/20 .mix to make a VLS40? or do i just buy the VLS40.
    I have the ISA with charles stanley direct.
    Can someone advise how i go about these options

    If you already hold an ISA with Charles Stanley Direct, I'm not sure what you're stuck on and why you can't do what you want to go about doing?

    For example if you have some spare money sitting in the account, you can put in an order to buy a certain £ amount worth of VLS40 fund, just as you would buy any other fund that took your fancy.

    If you already hold VLS60 (60% equities) and would prefer your overall holding to have a lower proportion of equities while still allocating the equities in broadly the same way and still allocating the bonds in broadly the same way, you could sell some of your VLS 60 and buy an amount of VLS20 which equals the value you had remaining in VLS60.

    For example if you have £5000 at 60% equity (effectively £3000 of equities) and £5000 at 20% equity(effectively £1000 of equities), in total you would have £10,000 with £4000 of equities, just like if you had bought a VLS40 product instead of those two other products. You would need to periodically balance your holdings of the two funds by buying or selling to maintain the 50:50 split if you wanted a "virtual" home-made 40% equity fund out of separate components.

    Other products are available.
  • roxy28
    roxy28 Posts: 670
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    bowlhead99 wrote: »
    If you already hold an ISA with Charles Stanley Direct, I'm not sure what you're stuck on and why you can't do what you want to go about doing?

    For example if you have some spare money sitting in the account, you can put in an order to buy a certain £ amount worth of VLS40 fund, just as you would buy any other fund that took your fancy.

    If you already hold VLS60 (60% equities) and would prefer your overall holding to have a lower proportion of equities while still allocating the equities in broadly the same way and still allocating the bonds in broadly the same way, you could sell some of your VLS 60 and buy an amount of VLS20 which equals the value you had remaining in VLS60.

    For example if you have £5000 at 60% equity (effectively £3000 of equities) and £5000 at 20% equity(effectively £1000 of equities), in total you would have £10,000 with £4000 of equities, just like if you had bought a VLS40 product instead of those two other products. You would need to periodically balance your holdings of the two funds by buying or selling to maintain the 50:50 split if you wanted a "virtual" home-made 40% equity fund out of separate components.

    Other products are available.

    Yes i just have the VLS60 in my ISA, i will have to think a bit more about this, as i just wanted the 1 fund to add too now and again, and just forget it. ie no rebalancing etc.
    :T
  • Audaxer
    Audaxer Posts: 3,505
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    dunstonh wrote: »
    You are going to suffer a 30% loss at some point. Could be tomorrow, next week, next month or next year. When you invest is not going to change that.
    If there was a 30% loss tomorrow or next week, presumably that would be the best time to invest? Even if it dropped further after your investment, if you held on to the investment you would have made a 30% gain when the VLS60 fund eventually got back to the level it was at before the 30% drop.
  • ColdIron
    ColdIron Posts: 8,790
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    roxy28 wrote: »
    i just wanted the 1 fund to add too now and again, and just forget it. ie no rebalancing etc.
    You could just sell your VLS60 and purchase VLS40, job done. There are no trading fees for funds with Charles Stanley
  • bowlhead99
    bowlhead99 Posts: 12,295
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    roxy28 wrote: »
    Yes i just have the VLS60 in my ISA, i will have to think a bit more about this, as i just wanted the 1 fund to add too now and again, and just forget it. ie no rebalancing etc.

    So if ,VLS60 is not right for you and you only want one fund, then sell it and buy the one fund that's right for you. It might be VLS40. It might be L&G Multi Index 5. It might be something you read about somewhere other than this forum.

    Your ideal holding is unlikely to be some customised combo of VLS60 and VLS20 which needs periodic attention to make sure it mathematically adds up to the ratio which you could have got off the shelf by selling up and buying VLS40. If you know how to buy the fund you have already, you can probably figure out how to sell it and buy a different one.

    Personally I wouldn't want VLS40, as I really wouldn't want to trust 60% of my performance to a pile of bond indexes. However if you were to ask me what I have instead, it wouldn't be suitable either, because I'm looking at more like 70% equities anyway, and using a whole bunch of products that aren't suitable for less-experienced investors :D
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