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    • schoey123
    • By schoey123 14th Sep 17, 12:42 PM
    • 45Posts
    • 8Thanks
    schoey123
    Vanguard Investment Fund
    • #1
    • 14th Sep 17, 12:42 PM
    Vanguard Investment Fund 14th Sep 17 at 12:42 PM
    Hi - I've after some advice about which Vanguard Investment fund to choose.

    I've setup a £300 a month regular contribution to my S&S ISA with Hargreaves Lansdown.

    My high-level criteria:
    invest for over 10 years
    global exposure
    multi-asset
    on a scale of 1 to 10 (10 being high risk) I'm a 6.

    Thanks,
Page 1
    • BLB53
    • By BLB53 14th Sep 17, 12:47 PM
    • 1,156 Posts
    • 939 Thanks
    BLB53
    • #2
    • 14th Sep 17, 12:47 PM
    • #2
    • 14th Sep 17, 12:47 PM
    You could go direct with Vanguard Investor and save 0.3% each year on platform fees.

    That aside, I would go with the Lifestrategy 60 (acc).
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • dunstonh
    • By dunstonh 14th Sep 17, 12:48 PM
    • 89,603 Posts
    • 56,093 Thanks
    dunstonh
    • #3
    • 14th Sep 17, 12:48 PM
    • #3
    • 14th Sep 17, 12:48 PM
    I've after some advice about which Vanguard Investment fund to choose.
    Based on what you have written, it would be any of the 5 multi-asset funds they offer.

    If you are limiting yourself to just Vanguard, then why are you using HL?

    on a scale of 1 to 10 (10 being high risk) I'm a 6.
    What context is that scale? Does 1 = cash. Does 10 mean the highest risk UT/OEIC options or the highest risk options from outside UT/OEICs? are the risk levels evenly spread or have different weightings (some have tighter lower risk volatility spreads but larger higher risk ones).

    In other words, context is needed. How much loss can you stomach or afford in a 12 month period?

    BLB53 has mentioned VLS60 but on our 1-10 scale, 6 would be VLS80. So this is why that context is important.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Alexland
    • By Alexland 14th Sep 17, 8:44 PM
    • 692 Posts
    • 432 Thanks
    Alexland
    • #4
    • 14th Sep 17, 8:44 PM
    • #4
    • 14th Sep 17, 8:44 PM
    I agree if you are only buying Vanguard then move your ISA to Vanguard. Not only are the fees cheaper but they allow you to invest all your money with no need to keep a cash balance to pay fees.

    I find keeping track of tiny cash balances under threat of penalty fees irritating and only put up with it in my Halifax SIPP because the fixed fee is such good value on large balances. I have a DD setup for exactly the right amount each month.

    Vanguard has the right idea - fees should be automatic as humans have invented computers.

    My guess on your limited information is that you are somewhere around VLS60 as bonds are carrying a lot more risk these days I wouldn't sleep at night for fear if I was in 'safe' VLS20.

    Personally I am 50:50 between VLS60 and VLS80 in my ISA and that's because I had no problems holding my nerve during the 2008 financial crisis (I even invested lump sums when the market was cheap to reduce my average unit cost) and still have a lot more accumulation time ahead.

    If the markets dropped by 15% then I would swap the VLS60 for more VLS80 which would be like pushing the Turbo button on an old 486 but better as most of them didn't have a motherboard that supported the feature!

    Alex
    Last edited by Alexland; 14-09-2017 at 9:06 PM.
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