FTSE 100 tracker funds?

Tinpusher

Hi folks,

Any recommendations for a FTSE 100 tracker fund? I figure with the FTSE 100 at a bit of a low, I'm going to drop some savings into it. Like, about £3600 of unused ISA allowance for this year.

Looking for a 3-7 year investment here.

dunstonh

Any reason that you want to throw 100% into one of the worst performing indicies for the last 15 years?

Doesnt mean it will be in future but putting your eggs all in one basket and a very limited basket at that probably isnt a good thing.

Looking for a 3-7 year investment here.

That timescale puts you in the high risk category at the lower timescale. If you are that high risk inclined, then you have a lot of choice out there to pick from and not just the FTSE100.

StevieJ

Legal and General do a few trackers although I think the UK one is all share,
charges are a reasonable 0.5%, Fidelity moneybuilder is pretty reasonable as well.

http://www.legalandgeneral.com/investments/unit-trusts/index-tracking-unit-trust/the-charges.html

Dunstonh will be along in a minute to argue against single fund investing.

Tinpusher

I think you spoke too soon Stevie!

Interesting POV, dunstonh. So... let's say you're going to invest in a tracker fund, which one would you choose?

I'm slightly biased towards keeping investments UK based at the moment- mostly due to the value of the GBP vs the EUR and the USD.

(Interestingly enough, did you know that the GBP has gone down in value against even the Zimbabwean Dollar?)

vbrindle

If you did go down the legal and general route, don't forget to go through quidco for some cashback

Also I think paying in monthly is better than putting a lump sum in as the value of the fund will fluctuate, unless you're confident it's hit rock bottom.

StevieJ

Tinpusher wrote: »

I think you spoke too soon Stevie!

Interesting POV, dunstonh. So... let's say you're going to invest in a tracker fund, which one would you choose?

I'm slightly biased towards keeping investments UK based at the moment- mostly due to the value of the GBP vs the EUR and the USD.

(Interestingly enough, did you know that the GBP has gone down in value against even the Zimbabwean Dollar?)

Or to late, Sorry about that Dunstonh.

StevieJ

Tinpusher wrote: »

I think you spoke too soon Stevie!

Interesting POV, dunstonh. So... let's say you're going to invest in a tracker fund, which one would you choose?

I'm slightly biased towards keeping investments UK based at the moment- mostly due to the value of the GBP vs the EUR and the USD.

(Interestingly enough, did you know that the GBP has gone down in value against even the Zimbabwean Dollar?)

If you want a real boneshaker of a ride try the Russian market, I put some funds into the Neptune Russia, only within the last week or two. I think my fund was down around 18% last week and now it is up.

StevieJ

loaner wrote: »

you'll probably get a better return in a savings account

Not when interest rates are 1%

opinions4u

If you do choose a tracker fund, look for one that has low charges.

I like the Legal & General one - bought via Quidco usually earns a rather nice commission back!

Dunstonh has a point about exposing yourself to a limited range of assets - he (or she!) is more skilled than me. I'd suggest if you're talking significant chunks of your savings (percentage wise) then a savings account would be more appropriate.

Tinpusher

Thanks for the tips on Quidco- will certainly go down that route if I do opt for the L&G one.

I'm prepared to take the gamble that the FTSE is at a low point. The next 6 months will be very interesting- seeing:

1. The affect of the outcome of the US presidential election
2. The affect of the government bail-outs on national economies
3. The impending UK general election and the almost dead certainty that we will have a Conservative government afterwards

Of course, I could be wrong in my predictions, but I'd like to think of myself as a reasonable judge of the national mood.

StevieJ

loaner wrote: »

if they get that low, I doubt the ftse will be booming

Incorrect, that is exactly when the Ftse will be booming, i.e. the yield on the Ftse will look like honey tree to a bear.