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    • joebob
    • By joebob 10th Oct 17, 9:49 AM
    • 307Posts
    • 71Thanks
    joebob
    scotish mortgage trust
    • #1
    • 10th Oct 17, 9:49 AM
    scotish mortgage trust 10th Oct 17 at 9:49 AM
    I have a lump sum of £6k to invest and £200 -£300 a month to invest as well. I am not averse to risk,and have been looking at scottish mortgage trust which has good returns and comes in top 3 of most recommended investment trusts. Also been looking at vanguard lifestrategy 60%, any thoughts on which one to go with.
Page 1
    • bowlhead99
    • By bowlhead99 10th Oct 17, 11:06 AM
    • 6,729 Posts
    • 11,994 Thanks
    bowlhead99
    • #2
    • 10th Oct 17, 11:06 AM
    • #2
    • 10th Oct 17, 11:06 AM
    It depends what "not averse to risk" really means to you. If you really mean "if the value of my investment drops by 70% or more, and then takes a decade to recover, wouldn't really mind, and would carry on buying £200-300 of shares in it each month" then you might be happy having Scottish Mortgage as your only investment. They allocate investors' money into a highly concentrated portfolio of equity investment into companies, and at the moment have a strong focus on overseas technology companies (eg US and Chinese internet firms). So it is likely to be quite volatile in terms of its value and returns from year to year.

    The average UK investor has a portfolio much closer to what Vanguard Lifestrategy 60 has to offer, rather than Scottish Mortgage. VLS60 has only 60% in equities, the rest in bonds, and only three quarters of the equities being listed on foreign stockmarkets with the rest in UK (weighted heavily to FTSE100).

    The VLS60 will swing up and down in value but not to the same extremes as SM. It was designed to be someone's whole portfolio (or the core of it) while SM was not. But left for 20-30 years you would probably expect SM to produce greater growth as it is all equities - and equities typically have greater term growth than bonds.
    • joebob
    • By joebob 10th Oct 17, 11:40 AM
    • 307 Posts
    • 71 Thanks
    joebob
    • #3
    • 10th Oct 17, 11:40 AM
    • #3
    • 10th Oct 17, 11:40 AM
    I am looking at keeping the lump sum in for 10 years so i expect it to go up and down over the years. I have my own portfolio of ftse shares and isas so was looking for something else to add to it. looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?
    • eskbanker
    • By eskbanker 10th Oct 17, 11:46 AM
    • 5,562 Posts
    • 5,406 Thanks
    eskbanker
    • #4
    • 10th Oct 17, 11:46 AM
    • #4
    • 10th Oct 17, 11:46 AM
    I have my own portfolio of ftse shares and isas so was looking for something else to add to it.
    Originally posted by joebob
    Probably best to give some more information about your existing portfolio rather than drip-feeding - what are you currently invested in and how have you structured this portfolio?

    looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?
    Originally posted by joebob
    Depends on which platform(s) you're using and their charging structure....
    • george4064
    • By george4064 10th Oct 17, 11:46 AM
    • 844 Posts
    • 893 Thanks
    george4064
    • #5
    • 10th Oct 17, 11:46 AM
    • #5
    • 10th Oct 17, 11:46 AM
    I am looking at keeping the lump sum in for 10 years so i expect it to go up and down over the years. I have my own portfolio of ftse shares and isas so was looking for something else to add to it. looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?
    Originally posted by joebob
    Depends on the platform you use and their dealing charges.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £9,136.98/£12,000 (76%)
    • dunstonh
    • By dunstonh 10th Oct 17, 11:47 AM
    • 89,852 Posts
    • 55,447 Thanks
    dunstonh
    • #6
    • 10th Oct 17, 11:47 AM
    • #6
    • 10th Oct 17, 11:47 AM
    I am not averse to risk
    Good job considering your investment choice.

    Also been looking at vanguard lifestrategy 60%,
    Why? It isnt even close in comparison to SMT.
    any thoughts on which one to go with.
    Neither at this stage as you dont appear to have nailed down your risk profile. Until you do, you are just making p'ing in the wind and hoping for the best.

    Look at your risk profile (tolerance, behaviour and understanding) and then pick your investments.
    • joebob
    • By joebob 10th Oct 17, 12:02 PM
    • 307 Posts
    • 71 Thanks
    joebob
    • #7
    • 10th Oct 17, 12:02 PM
    • #7
    • 10th Oct 17, 12:02 PM
    Probably best to give some more information about your existing portfolio rather than drip-feeding - what are you currently invested in and how have you structured this portfolio?

    Depends on which platform(s) you're using and their charging structure....
    Originally posted by eskbanker
    Got £15.000 in isas
    £24.000 in bp, taylor wimpey, marshalls ,itv,lloyds, barclays, Iag.

    with td direct
    • joebob
    • By joebob 10th Oct 17, 12:12 PM
    • 307 Posts
    • 71 Thanks
    joebob
    • #8
    • 10th Oct 17, 12:12 PM
    • #8
    • 10th Oct 17, 12:12 PM
    Good job considering your investment choice.



    Why? It isnt even close in comparison to SMT.


    Neither at this stage as you dont appear to have nailed down your risk profile. Until you do, you are just making p'ing in the wind and hoping for the best.

    Look at your risk profile (tolerance, behaviour and understanding) and then pick your investments.
    Originally posted by dunstonh
    Not close in comparison in what way ?

    My risk profile is moderately adventurous according to an IFA
    • jimjames
    • By jimjames 10th Oct 17, 12:15 PM
    • 12,087 Posts
    • 10,531 Thanks
    jimjames
    • #9
    • 10th Oct 17, 12:15 PM
    • #9
    • 10th Oct 17, 12:15 PM
    Not close in comparison in what way ?
    Originally posted by joebob
    In the same way that a Ferrari isn't very close in comparison to a Ford Ka for getting from A to B. They are still both cars though.
    Last edited by jimjames; 10-10-2017 at 12:19 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • joebob
    • By joebob 10th Oct 17, 12:23 PM
    • 307 Posts
    • 71 Thanks
    joebob
    In the same way that a Ferrari isn't very close in comparison to a Ford Ka for getting from A to B. They are still both cars though.
    Originally posted by jimjames
    Not with you could you expand.
    • ColdIron
    • By ColdIron 10th Oct 17, 12:43 PM
    • 3,450 Posts
    • 4,056 Thanks
    ColdIron
    Just on risk alone, TrustNet's risk score for the FTSE100 is 100 and cash is 0. Using that metric SMT is 149 and VLS is 62. That's quite a difference
    I'd strongly suggest you do some (any) research before parting with your cash
    • dunstonh
    • By dunstonh 10th Oct 17, 12:58 PM
    • 89,852 Posts
    • 55,447 Thanks
    dunstonh
    My risk profile is moderately adventurous according to an IFA
    context of words is needed as different risk scales may use similar words but put people in different places.

    On my risk scale, we have a moderate to adventurous classification. VLS60 isnt in that classification but a lower risk level. SMT isnt in that classification is in a much higher risk profile.

    If you had the risk profile for VLS60, then SMT would scare the hell out of you at times. If you had the risk profile for SMT, you would ultimately find VLS60 to be a disappointment.
    • BLB53
    • By BLB53 10th Oct 17, 1:23 PM
    • 1,122 Posts
    • 901 Thanks
    BLB53
    It may not be an either/or...why not put the majority of your spare money into VLS 60 and the rest in SMT?
    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.
    • joebob
    • By joebob 10th Oct 17, 1:32 PM
    • 307 Posts
    • 71 Thanks
    joebob
    context of words is needed as different risk scales may use similar words but put people in different places.

    On my risk scale, we have a moderate to adventurous classification. VLS60 isnt in that classification but a lower risk level. SMT isnt in that classification is in a much higher risk profile.

    If you had the risk profile for VLS60, then SMT would scare the hell out of you at times. If you had the risk profile for SMT, you would ultimately find VLS60 to be a disappointment.
    Originally posted by dunstonh
    The risk profile was done on Fina metrica risk profiling.
    I get what your saying about risk on SMT having just looked on the trustnet site which is the first time i have been on and is good for research thanks coldiron. will continue to look and research, just looking for something more exciting than isas and low interest accounts.
    • jimjames
    • By jimjames 10th Oct 17, 1:36 PM
    • 12,087 Posts
    • 10,531 Thanks
    jimjames
    It may not be an either/or...why not put the majority of your spare money into VLS 60 and the rest in SMT?
    Originally posted by BLB53
    Alternatively investing monthly into SMT might be a way to smooth out the ride a bit
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Alexland
    • By Alexland 10th Oct 17, 2:09 PM
    • 438 Posts
    • 258 Thanks
    Alexland
    You already have a very UK centric share portfolio so assuming you are going to keep them then I would suggest you consider investing in a mixed asset fund with less bias than VLS.

    I don't get the feeling that SMT would be right for you but given the rest of your portfolio I can see why you would be attracted to it.

    Alex
    • bigadaj
    • By bigadaj 10th Oct 17, 3:24 PM
    • 10,286 Posts
    • 6,601 Thanks
    bigadaj
    The risk profile was done on Fina metrica risk profiling.
    I get what your saying about risk on SMT having just looked on the trustnet site which is the first time i have been on and is good for research thanks coldiron. will continue to look and research, just looking for something more exciting than isas and low interest accounts.
    Originally posted by joebob
    SMT is almost certainly lower risk than your share portfolio, that's not very low risk at all though.

    Why have you got individual shares and why those?
    • Eco Miser
    • By Eco Miser 10th Oct 17, 4:18 PM
    • 3,079 Posts
    • 2,845 Thanks
    Eco Miser
    just looking for something more exciting than isas and low interest accounts.
    Originally posted by joebob
    What do you thank an isa is?
    In reality with the right (wrong) choice they could be very exciting indeed.
    Eco Miser
    Saving money for well over half a century
    • joebob
    • By joebob 10th Oct 17, 4:29 PM
    • 307 Posts
    • 71 Thanks
    joebob
    SMT is almost certainly lower risk than your share portfolio, that's not very low risk at all though.

    Why have you got individual shares and why those?
    Originally posted by bigadaj
    I started buying them 4-5 years ago whenever i had spare cash. some were recommended and some i had a good feeling about when they were at a low price ie TW 50p marshalls 1.57
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