What funds are you in, and why?

Jonbvn

cardsharps wrote: »

Personally I wouldn't invest in any fund as the charges (5%+ initial charge and then the 1.5% annual management charge) are an absolute rip-off. The effect these charges have on your investment over a long period of time are heinous. I stick to the UK market and buy individual shares and so only pay a one-off 0.5% stamp duty charge.

Most fund supermarkets refund a large portion of the initial charges.

Linton

cardsharps wrote: »

Personally I wouldn't invest in any fund as the charges (5%+ initial charge and then the 1.5% annual management charge) are an absolute rip-off. The effect these charges have on your investment over a long period of time are heinous. I stick to the UK market and buy individual shares and so only pay a one-off 0.5% stamp duty charge.

Then you are missing out on some potentially very lucrative investments. eg - JPMF Natural Resources £1.60 in 2003, £8 now. Jupiter Emerging Europe - 50p in 2003, £1.90 now, and many others. There are major areas of investment where it would be very difficult to invest directly and funds are really the only option.

Fund supermarket initial charges are nothing like the values you suggest.

The important thing in any investment is how much you are likely to get out of it. How much the vendor is likely to get is irrelevent.

I would agree that the justification for buying funds of FTSE100/350 shares is less clear, but even here, if you cannot afford a diversified portfolio, funds and ETFs are useful.

PS Also, dealing in funds is much cheaper than dealing in shares. For example Fidelity (a fund supermarket as well as a fund manager) charge 0.5% for buys and nothing for sells. There is of course no stamp duty.

bendix

cardsharps wrote: »

Personally I wouldn't invest in any fund as the charges (5%+ initial charge and then the 1.5% annual management charge) are an absolute rip-off. The effect these charges have on your investment over a long period of time are heinous. I stick to the UK market and buy individual shares and so only pay a one-off 0.5% stamp duty charge.

How many different shares do you own at any one time? With my exposure to around 22 different funds, I estimate I am currently invested in a minimum of 1200 companies (allowing for overlaps) across over 50 countries and a wide range of sectors.

bendix

bendix wrote: »

I'm currently in around 20-22 different funds, but that is only what I call my investable money and that only accounts for around 25% of my assets. The rest is in cash earning a very good rate overseas or property.

Of that 20-22 funds, there is a very wide variety with the vast majority of them being share-based. In terms of key markets, around 30% is UK oriented, followed by Australia / NZ, emerging markets, developing asia, Europe and the US. I have a small holding in Japan which is turning into a dog.

I also have some exposure to corporate bonds, but I've recently taken some profits off the table and am looking for a home that those profits - having said that, I am continuing allocating a proportion of my monthly investment into corporate bond funds for the time being.

In terms of more specialist funds, I have held Blackrocks Gold and General for the last six months. It's been a roller coaster ride. The first few months it fell close to 20%. Today it's up around 16% and I'm glad I resisted the urge to cash in when it got back to parity. I also like the look of property funds at the moment and have recently bought into a global REITs fund.

My favourite at the moment is Artemis Strategic Assets.

Update: I've used the cash I made from the corporate bond funds to buy into two new funds today - a UK small company fund run by Old Mutual because I have next to no exposure to that area, and a European (ex UK) fund to increase my exposure to the Euro-zone.

Rollinghome

bendix wrote: »

Update: I've used the cash I made from the corporate bond funds to buy into two new funds today - a UK small company fund run by Old Mutual because I have next to no exposure to that area, and a European (ex UK) fund to increase my exposure to the Euro-zone.

That's interesting. I did almost exactly the same with some adjustments to my wife's pf last night. Bought into Old Mutual UK Select Smaller Cos and added to her existing holding in Cazenove European. Hope it's another case of great minds thinking alike.

(Really done as a bit of balancing against her shareholdings rather than any particular conviction for either.)

Blah99

bendix wrote: »

How many different shares do you own at any one time? With my exposure to around 22 different funds, I estimate I am currently invested in a minimum of 1200 companies (allowing for overlaps) across over 50 countries and a wide range of sectors.

Depending on your investment profile, and especially true for UK equity investments, there is major overlap between fund holdings. Throw a stone and I bet you hit a fund that's in BP, BAT and NG

rictus123 wrote:

Worst and best case scenario for that blah? Looking at my options theres not much i can find on what to do with my money

Not sure what you mean by worst/best case? There are many funds that will give you a solid return. With little effort and decent timing you can easily get 10% - 20%. Over a long period, 50% is achievable. Of course the opposite is true, and there are many funds that will get you nothing, or a loss.

If you can afford £1k up front and £50 a month, in 5 years you'll have a decent asset size.