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    • Caravan of Love
    • By Caravan of Love 29th Dec 17, 1:26 PM
    • 28Posts
    • 13Thanks
    Caravan of Love
    Fund Switch
    • #1
    • 29th Dec 17, 1:26 PM
    Fund Switch 29th Dec 17 at 1:26 PM
    Merry Christmas guys, I am just looking for a little feedback or even suggestions if anyone is willing. I am currently in my salary sacrifice pension which is automatically invested in the following:

    https://www.trustnet.com/factsheets/p/i6zf/av-mym-my-future-growth-pn

    Performance is so so, seems to be very 'safe'. I was looking to take control and was thinking of a 50/50 split across Lindsell Train Global Equity and Fundsmith Equity every month instead.

    Any thoughts or advice?

    Cheers
Page 1
    • dunstonh
    • By dunstonh 29th Dec 17, 1:30 PM
    • 90,437 Posts
    • 57,218 Thanks
    dunstonh
    • #2
    • 29th Dec 17, 1:30 PM
    • #2
    • 29th Dec 17, 1:30 PM
    Performance is so so, seems to be very 'safe'.
    Its not safe. More medium risk.

    I was looking to take control and was thinking of a 50/50 split across Lindsell Train Global Equity and Fundsmith Equity every month instead.
    That would be moving up the risk scale quite significantly and putting you right at the opposite end of safe.
    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.
    • Caravan of Love
    • By Caravan of Love 29th Dec 17, 1:39 PM
    • 28 Posts
    • 13 Thanks
    Caravan of Love
    • #3
    • 29th Dec 17, 1:39 PM
    • #3
    • 29th Dec 17, 1:39 PM
    Thanks Dunstonh. I am 35 years old so I factored in I could take some risk at this stage in my life.
    • dunstonh
    • By dunstonh 29th Dec 17, 2:11 PM
    • 90,437 Posts
    • 57,218 Thanks
    dunstonh
    • #4
    • 29th Dec 17, 2:11 PM
    • #4
    • 29th Dec 17, 2:11 PM
    Thanks Dunstonh. I am 35 years old so I factored in I could take some risk at this stage in my life.
    Originally posted by Caravan of Love
    Timescale certainly dilutes risk. However, investment risk is not the only risk. Behaviour risk is another. Can you handle getting a statement showing the value has halved?
    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.
    • Caravan of Love
    • By Caravan of Love 29th Dec 17, 2:29 PM
    • 28 Posts
    • 13 Thanks
    Caravan of Love
    • #5
    • 29th Dec 17, 2:29 PM
    • #5
    • 29th Dec 17, 2:29 PM
    Very good point. Before I would have said no, now it is different as tend to look at life/money differently.

    Would you say the above seems too risky?

    Cheers
    • Thrugelmir
    • By Thrugelmir 29th Dec 17, 2:38 PM
    • 56,777 Posts
    • 50,150 Thanks
    Thrugelmir
    • #6
    • 29th Dec 17, 2:38 PM
    • #6
    • 29th Dec 17, 2:38 PM
    Thanks Dunstonh. I am 35 years old so I factored in I could take some risk at this stage in my life.
    Originally posted by Caravan of Love
    The majority of long term returns are made through compounding, i.e. reinvestment of income. Investment shouldn't be viewed as a sprint, more like a marathon.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Smoothape
    • By Smoothape 29th Dec 17, 7:28 PM
    • 18 Posts
    • 12 Thanks
    Smoothape
    • #7
    • 29th Dec 17, 7:28 PM
    • #7
    • 29th Dec 17, 7:28 PM
    It's kind of silly to move from a portfolio fund into just a couple of equity funds. If you're going to manage the funds yourself you'll probably want to spread out the investment types a bit more.

    I'm the same age as you and in a couple of higher risk equity funds because I feel I can take that risk but also in some lower risk mixed funds and some FTSE funds. (I'm not rich enough to stash away and go ultra low risk into glts and bonds and slowly lose money).

    I moved out of my default portfolio fund mainly because it hasn't performed very well the last 10 years and because the fund charge was much higher than the funds I selected for myself.

    My default portfolio fund was also medium risk so by me choosing my own higher risk and lower risk more diverse selection of funds I am essentially matching that risk level with less charges and hopefully much better performance.
    • davieg11
    • By davieg11 29th Dec 17, 10:53 PM
    • 264 Posts
    • 154 Thanks
    davieg11
    • #8
    • 29th Dec 17, 10:53 PM
    • #8
    • 29th Dec 17, 10:53 PM
    Why not keep 50% where it is and split the other 50% between Lindsell Train Global Equity and Fundsmith Equity every month instead and see how it goes.
    • Caravan of Love
    • By Caravan of Love 9th Jan 18, 12:06 PM
    • 28 Posts
    • 13 Thanks
    Caravan of Love
    • #9
    • 9th Jan 18, 12:06 PM
    • #9
    • 9th Jan 18, 12:06 PM
    It's kind of silly to move from a portfolio fund into just a couple of equity funds. If you're going to manage the funds yourself you'll probably want to spread out the investment types a bit more.

    I'm the same age as you and in a couple of higher risk equity funds because I feel I can take that risk but also in some lower risk mixed funds and some FTSE funds. (I'm not rich enough to stash away and go ultra low risk into glts and bonds and slowly lose money).

    I moved out of my default portfolio fund mainly because it hasn't performed very well the last 10 years and because the fund charge was much higher than the funds I selected for myself.

    My default portfolio fund was also medium risk so by me choosing my own higher risk and lower risk more diverse selection of funds I am essentially matching that risk level with less charges and hopefully much better performance.
    Originally posted by Smoothape
    Cheers. So you would go a few high equity and some mixed funds?

    Could you provide an example if you do not mind.
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