One or several funds at a time?

cacique

I have about £120 a month to invest in my ISA held on Fidelity Fundsnetwork.
I already have 3 funds with about £1000 in each and there are now 3 other funds I'm interested in but, my question is, would it be daft to put £40 a month into 3 different funds or should I really put £120 into one fund at a time?
Is there any advantage/disadvantage either way?
As far as I'm concerned the first option is the favourite, as it would be more interesting to watch 3 funds! I don't want to do it that way if it is completely ridiculous though!

savingforoz

I'm a beginner at this game, but feel it may be good to use 3 funds rather than one, both to spread risk, and also because it's the option that most interests you anyway.

al_yrpal

3 Funds spreads the risk, or a multi manager fund like the Jupiter Merlin range gives an excellent spread too.

claretmatt

Don't see any issue with investing £40 each into 3 funds. Obviously look at the individual fund charges before hand though.

Also look to diversify overseas and not just in the UK.

HGLTsuperstar

Can I hijack this thread and extend the question. In a similar situation, and looking at funds that require monthly £50 minimum, but say I paid into it for 12 months, then wanted to take my £50pm elsewhere. Would i have to close this fund, or could I leave that pot there to keep "doing its thing", even though I wouldn't be contributing to it anymore, but my compounded total would be still within the fund

cloud_dog

HGLTsuperstar wrote:

Can I hijack this thread and extend the question. In a similar situation, and looking at funds that require monthly £50 minimum......

Most funds have a £50 minimum, a few may go lower but not many.

....., but say I paid into it for 12 months, then wanted to take my £50pm elsewhere. Would i have to close this fund, or could I leave that pot there to keep "doing its thing", even though I wouldn't be contributing to it anymore, but my compounded total would be still within the fund

The simple answer to this is, 'yes'.

A better solution is to open your account (inside an ISA or not) within a Funds Supermarket (Fidelity "Fundsnetwork" - https://www.fundsnetwork.co.uk - is probably the most well know). There are providers that offer discounts and even rebates on investments who tend to use wither Fundsnetwork or CoFunds (do a MSE search on "fund supermarket" as these have been discussed previously). The advantage of holding it within a funds supermarket its that you have approx 700 funds to chose from and can switch your investments in / out of funds for approx 0.25% charge.

cloud_dog

claretmatt

For the thread hijacker

You could leave the funds where they are and contribute your £50 elsewhere. Unless there is something within the T&C's that says anything to the contrary, which I doubt there will be.

Obviously remember that your fund will have to grow over and above the annual mangement charge or else it will deplete your capital.