Black Rock unit trusts

Andrew2010

I saw an advert for a BlackRock unit trust on Moneyfacts.co.uk saying a 1000UKP investment would produce >£3000 after 5 years.
Can anybody give me advice on investing with them? I have a unit trust with Virgin money - would this be a way to diversify? Any caveats or pitfalls to be aware of? Is the best place to apply through Moneyfacts or somewhere else?

Linton

Andrew2010 wrote: »

I saw an advert for a BlackRock unit trust on Moneyfacts.co.uk saying a 1000UKP investment would produce >£3000 after 5 years.
Can anybody give me advice on investing with them? I have a unit trust with Virgin money - would this be a way to diversify? Any caveats or pitfalls to be aware of? Is the best place to apply through Moneyfacts or somewhere else?

I would be amazed if the advert really said that. Suggest you read it again.

No-one knows what the future will bring. Any investment in a unit trust must be seen as having some risk of loss of capital.

There are unit trusts which have returned 25% per annum over a number of years in the past (which would increase £1000 to £3000 in 5 years) but this is certainly not guaranteed.

dunstonh

Can anybody give me advice on investing with them?

They are a fund house like many other fund houses.

I have a unit trust with Virgin money - would this be a way to diversify?

Virgin money is expensive and limited. However adding another fund house is not diversification. i.e. if you pick the Blackrock UK index tracker fund and have the Virgin UK index tracker then you are in identical areas (just paying 4-5 times more with Virgin than blackrock)

Any caveats or pitfalls to be aware of

A number of the Blackrock funds have a minimum of £1million per fund unless bought via a platform. So, going direct is not usually viable for most people.

Is the best place to apply through Moneyfacts or somewhere else?

I think you are jumping the gun.

You need to read up more as it doesnt look like you really understand investing yet (based on your choice of Virgin, lack of understanding diversification and not realising past performance figures DO NOT indicate future returns).

Diversification is where you invest. Not whom you invest through. Past performance on a fund is just that. It is not future performance as that is unknown. Is the economic cycle of the last 5 years going to be repeated in the next 5? (let hope not).

pressuredrop_2

A BlackRock fund that has risen 200% in five years? It's not difficult to work out which fund that is.

Andrew2010

Linton wrote: »

I would be amazed if the advert really said that. Suggest you read it again.

No-one knows what the future will bring. Any investment in a unit trust must be seen as having some risk of loss of capital.

There are unit trusts which have returned 25% per annum over a number of years in the past (which would increase £1000 to £3000 in 5 years) but this is certainly not guaranteed.

It's on moneyfacts, compare investments, unit trusts.

Andrew2010

dunstonh wrote: »

They are a fund house like many other fund houses.


Virgin money is expensive and limited. However adding another fund house is not diversification. i.e. if you pick the Blackrock UK index tracker fund and have the Virgin UK index tracker then you are in identical areas (just paying 4-5 times more with Virgin than blackrock)



A number of the Blackrock funds have a minimum of £1million per fund unless bought via a platform. So, going direct is not usually viable for most people.


I think you are jumping the gun.

You need to read up more as it doesnt look like you really understand investing yet (based on your choice of Virgin, lack of understanding diversification and not realising past performance figures DO NOT indicate future returns).

Diversification is where you invest. Not whom you invest through. Past performance on a fund is just that. It is not future performance as that is unknown. Is the economic cycle of the last 5 years going to be repeated in the next 5? (let hope not).

Virgin offer a minimum investment of £500. Are you talking about the commmission on taking money back from the trust?

The BlackRock is an OEIC, I'm not sure if this involves other territories.

turbobob

Andrew2010 wrote: »

It's on moneyfacts, compare investments, unit trusts.

They are past figures, not what it will make in the future. Read the warning!

"Past performance is not a guarantee of future performance. The figures and details shown are obtained from sources believed to be reliable. However, the accuracy and completeness of any information cannot be guaranteed and no warranty or representation is given and users must check all rates, conditions and details before finalising any arrangement. No liability can be accepted for any direct or consequential loss arising from the use or reliance upon this information."

While I like Moneyfacts for finding savings accounts etc. it looks very crude for investments. Selecting investments based just on what has performed the best over the last 5 years is not appropriate.

Linton

Andrew2010 wrote: »

It's on moneyfacts, compare investments, unit trusts.

Money facts may have said that that's what happened during the previous 5 years when there has been massive increases in the cost of raw materials.

It wont and cant say that this is what will happen during any future 5 years.

dunstonh

Virgin offer a minimum investment of £500.Are you talking about the commmission on taking money back from the trust?

as do many others. Their fund choice is dire and expensive though and its that which makes them poor.

The BlackRock is an OEIC, I'm not sure if this involves other territories.

Blackrock is a fund house that offer a range of OEICs. Most of us here can guess the fund you are looking at. Its a very high risk fund but then that is reflected in the past returns in a period that favoured the sector it is investing in.

Andrew2010

dunstonh wrote: »

as do many others. Their fund choice is dire and expensive though and its that which makes them poor.

You're referring to the returns?

Blackrock is a fund house that offer a range of OEICs. Most of us here can guess the fund you are looking at. Its a very high risk fund but then that is reflected in the past returns in a period that favoured the sector it is investing in.

I can't post the link but I was advised to diversify. I understand OEICs are not just UK index tracking funds? So this would be a valid diversification strategy don't you think?

dunstonh

You're referring to the returns?

No. Assuming you have the FTSE tracker, then the returns will typically be around mid table but consistent mid table. However, they offer only 3 funds (last I looked). One is a very expensive FTSE tracker, one is a specialist, high risk focused sector investment fund and the other is fixed interest sector. Whilst the returns on the specialist fund have been dire, its a specialist fund so you get periods like that. The issue is lack of choice, inability to diversify and most importantly for a DIY investment, it is damned expensive. Its more expensive than getting an adviser to set it up for you and taking commission on it.

I can't post the link but I was advised to diversify.

You should diversify with investments but changing the fund house is not diversification. Diversification is changing where you invest. i.e. A UK equity fund with Blackrock is not diversification if you hold the FTSE tracker with Virgin. However, Blackrock continental Europe Tracker would be diversification as one invests in Europe (excluding UK) and the other invests in UK.