Mini ISA - Index Tracker

dunstonh

kenshaz wrote:

17 % last year

Exactly the point. Not very good is it.

MastG

dunstonh wrote:

Exactly the point. Not very good is it.

yep exactly the point

L&G UK index inc tracker beat 187 other funds out of 279 in its sector in 1/12/04 to 1/12/05
and 168 out of 270 in 1/12/03 to 1/12/04
'source Bloomberg Money magazine Jan 2006'

discrete returns on £100 for L&G UK index inc:
1/12/04 to 1/12/05 £121.3
1/12/03 to 1/12/04 £112.9
1/12/02 to 1/12/03 £111.3
'source Boomberg Money Magazine Jan 2006'

Gary

empfun

al_yrpal, what does Yield on the fund list mean? Cheers!

EdInvestor

That's the dividend yield paid, bit like a cash interest rate. The higher the better.They should of course all be paying the same since they are trackers and the index has the same yield for all, but the funds take a little of the yield as a fee, some more than others.

BTW dividend yield payments are tax free for basic rate taxpayers.

al_yrpal

empfun,
As Ed says it's the dividend yield. With some funds you can choose to have these paid out, or, with an ACC fund they buy more units in the fund for you, so it rolls up. As you can see there is a bit of variance in performance. Virgin performed worse than M&G for instance, by using the red 'customise' button you can have a look at discrete performance intervals and try to figure out why. With the https://www.trustnet.com site there is a lot of help and tutorials on investment in Investment Funds, Trusts and OEIC's. Have a trawl around, and click on headings to get things in order of performance. Its also interesting to look at the various groups that offer funds, and to look at sectors. You can see the best performing sectors, and the best performing funds. Some people offer funds of funds, ie they are trying to do what a fund investor does and pick a portfolio of the best forming funds balanced right across world makets, or local markets to reduce risk, whilst getting higher growth.

Press all the buttons and explore the menu's, its time well spent

dunstonh

MastG wrote:

yep exactly the point

L&G UK index inc tracker beat 187 other funds out of 279 in its sector in 1/12/04 to 1/12/05
and 168 out of 270 in 1/12/03 to 1/12/04
'source Bloomberg Money magazine Jan 2006'

discrete returns on £100 for L&G UK index inc:
1/12/04 to 1/12/05 £121.3
1/12/03 to 1/12/04 £112.9
1/12/02 to 1/12/03 £111.3
'source Boomberg Money Magazine Jan 2006'

Gary

You are making out that 17% over the last 12 months is good performance. It is not.

Japan, over 40-60%
Europe 25-35%
UK Equity Income 20-37%
N America 20-30%

Out of 734 funds in those sectors, a return of 17% would place that fund at 656.

These were not the only sectors to perform better and the above did not include the higher risk smaller cos/opps funds (which performed better still).

So is saving 0.5% pa to be invested in an area that is historically the best performing only once every 5-7 years really worth it?

carnet

al_yrpal wrote:

With some funds you can choose to have these paid out, or, with an ACC fund they buy more units in the fund for you, so it rolls up.

Not so.

Many funds offer both Income and Accumulation Units/Shares. The accumulation option's price(s) are higher as any dividend income is automatically added into them - unlike the income version where it is paid out.

If you choose Acc. units the income doesn't buy you more units/shares - the price will increase faster, reflecting the added income.

More units being bought would only be the case if the investment only offered income units and you had opted for reinvestment of income - where this facility was available.