Invesco Perpetual vs F&C All Share Tracker

ChloeRadshaw

I m seriously thinking of putting 40K in a fund but I ve not ben able to figure out which one

I m with Hargreaves And lansdowne and have narrowed my choice to the following:
1) F&C All Share
2) Invesco Perpetual High Income

The F&C fund has a 0.3% charge which is very small whereas the Invesco fund has a 1.75% charge.

Apart from that I think that the ALl Share is a much bigger number of copmanies so I m inclined to that

Does anyone have an idea of which fund should be chosen over the other?

dunstonh

I m seriously thinking of putting 40K in a fund

Single fund investing is bad investing. You are putting all your eggs in one basket. I would be looking at 8-10 funds with an amount that size.

The F&C fund has a 0.3% charge which is very small whereas the Invesco fund has a 1.75% charge.

Apart from that I think that the ALl Share is a much bigger number of copmanies so I m inclined to that

The F&C all share will give you mid table performance consistently. Never top, never bottom. The Inv Perp fund is a focused fund with different aims from the all share fund. At times they will be the best place to be and at times they will not be.

Day_Trader

There is no specific choice that is right - it is what works for you. The F&C fund has a lower charge as it tracks the FTSE 100 so there is little work for the fund manager involved. The IP High Income will be looking for some of the higher yielding investment opportunities.
FTSE 100 trackers don't historically tend to perform that well but are seen as low risk investment. IP High Income will be medium risk but gives the opportunity for greater returns. The charge is higher but then you are paying for the expertise of Neil Woodford who is regarded as one of the best fund managers around.
How long have you got to invest and do you need income? Here is a comparison chart for the two funds:

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EdInvestor

Day_Trader wrote: »

FTSE 100 trackers don't historically tend to perform that well but are seen as low risk investment.

Anyone who thinks FTSE100 trackers are low risk is wrong. They are medium to high risk.

dunstonh

I think Day trader was saying that they are perceived as low risk, not that they are lower risk. "are seen as low risk investment.". Of course, they are not low risk but medium/high as you say.

I have just done a volatility scattergraph using Financial Express (1 year) and it shows inv perp being quite a lot less than either an all share of 100 tracker.
Inv Perp high income: 18.5
F&C all share: 21.6
F&C 100: 21.9

To put those figures relative to the sector, the sector average risk points were:
UK All companies sector: 20.8
UK Equity Income sector: 19.2
most volatile fund in UK all companies sector: 24.6 (SVM Uk opportunities)
least volatile fund in UK all companies sector: 9.8 (Manek Inv management Growth fund)
most volatile fund in UK equity income:25.1 (New star UK strategic income)
least volatile fund in UK equity income: 15.1 (troy asset man - Trojan Income )

The actual values are not important here. So, I wont explain the scale. The point is just to highlight the difference. The info is historical and will change as the makeup of the funds changes. Volatility is not the only risk consideration but its a good indicator. For example, Trojan Income has the lowest risk indicator and was also the best performer (on the basis it lost 12.6% over 12 months). The new star strategic income fund was not the worst performer, although it came out second from bottom. 4th from bottom had a risk score of 18.9 and the second lowest risk lost more than the sector average. So, good indicator for a generalisation only as there are some that buck the trend for and against.

Day_Trader

EdInvestor wrote: »

Anyone who thinks FTSE100 trackers are low risk is wrong. They are medium to high risk.

Sorry should have put it into context. See dunstonh's comment above. They are perceived as low risk compared to more specialist funds hence the misconception about them. It's a full equity investment so it's as you say medium to high.