Funds for 2011 and forward

flightless

Hi, (sorry, also posted this in "ISA" but probably belongs here better)

I'm about to open an H&L Vantage Shares ISA. I'd don't have much free cash to start with, but have a longer time frame in mind (10yrs+) and at this stage I'm happy with higher risk funds.

My plan is to open 3 funds with just over £1000 in each (H&Ls minimum) and then top up with monthly additions (£50) and I've picked two I'm happy with:

Aberdeen Emerging Markets Accumulation
M&G Global Basics Class X Accumulation

But can't seem to decide on a third (H&L require 3k to start), alternating between:

First State Global Emerging Mkt Leaders (bad to have all my eggs in the "emerging markets" basket? but not much overlap with Aberdeen)
AXA Framlington Global Technology
First State Global Listed Infrastructure (I like the concept)
FTSE all Shares
Something Food/Agricultural?

Any ideas?? Should I get a more UK/Western centred one to be in when things go back to normal (eventually)

Thanks for any help.

Newbie2saving

Can't help in terms of which funds, but have you tried the Morning Star UK site and the x-ray tool to drill down into any overlaps in holdings? I found it really useful in helping me choose which funds were suitable for my portfolio. I decided as a new investor >12months ago to have 2 active funds and 1 passive in a tracker to see how it did in the long term (they have much lower TER's). Maybe worth looking into?

DavidHayton

Why not balance these two relatively spicy funds with a boring tracker. HSBC FT-AllShare Accumulation is cheap and cheerful and does the job. It will also help you to follow the main markets as you learn the ropes. David

jimjames

DavidHayton wrote: »

Why not balance these two relatively spicy funds with a boring tracker. HSBC FT-AllShare Accumulation is cheap and cheerful and does the job. It will also help you to follow the main markets as you learn the ropes. David

Definitely a good idea if you don't have any other funds. Balancing some risky overseas areas with a UK tracker would make sense and in markets like the UK it is harder for a manager to beat the index especially with such low charges on the HSBC fund.

cloud_dog

flightless, this has been mentioned previously in relation to HL investing but if you would rather invest you initial amounts (£3k) monthly then you can do this by using the HL monthly investment option and then altering the monthly fund amount to suit your longer term situation, i.e. start with £200pm (or whatever you prefer) and then change it online to another amount.

nxdmsandkaskdjaqd

Own question answered.

nxdmsandkaskdjaqd

Sorry to hi-jack this thread, but always take a look at the proposals made on here.

HSBC FTSE 250 Index Ret Acc has achieved a growth of 26% in the last 12 months
HSBC FTSE 100 Index Ret Acc has achieved a growth of 13% in the last 12 months

I just wanted to know is there a specific reason for the drastic difference in performance between the 2 funds? Is the HSBC FTSE 250 Index not a better option to go with? (or am I missing something?)

cloud_dog

nxdmsandkaskdjaqd wrote: »

HSBC FTSE 250 Index Ret Acc has achieved a growth of 26% in the last 12 months
HSBC FTSE 100 Index Ret Acc has achieved a growth of 13% in the last 12 months

Things, or the flow of money goes in cycles.

There are periods where large cap stocks (FTSE100) perform better than smaller cap stocks (FTSE250) and vice cersa.

Some would argue that a better course of action might be to go with the FTSE100 as its constituents are lagging the growth experienced by the FTSE250.

You need to understad the cycle we are in at present and what is causing the bigger increase in 250's in relation to 100's.


If you're not going to monitor your investments then possibly consider inesting in both; if you are going to monitor they you could consider investing one and switch to the other at an appropriate time. What constitutes an approrpiate time is what investing is largely about.

I'm affraid there is no simple answer.

StevieJ

nxdmsandkaskdjaqd wrote: »

Sorry to hi-jack this thread, but always take a look at the proposals made on here.

HSBC FTSE 250 Index Ret Acc has achieved a growth of 26% in the last 12 months
HSBC FTSE 100 Index Ret Acc has achieved a growth of 13% in the last 12 months

I just wanted to know is there a specific reason for the drastic difference in performance between the 2 funds? Is the HSBC FTSE 250 Index not a better option to go with? (or am I missing something?)

In theory smaller companies perform better when leaving recession (just take a look at the SL smaller companies fund). Many people (including myself) thought it would be different this time due to the austerity cuts being felt more by smaller companies. I think those cuts have not yet been felt by the economy and may come into play in 2011 so it is possible that we may see a reverse in the performance of those two indices, but who knows?

flightless

Thanks for the pre-hi-jack advice

An All-Share tracker does seem a bit dull, but probably the way to go to balance everything out. Do you see any advantage/disadvantage to using an ETF in place of a tracker in a mature market such as FTSE? (the DB X-tracker FTSE All-Share tracks very close). The problem I see is they seem to be a "one-off" buy, harder to top-up then a fund and H&L add an annual charge on things that don't pay a renewal commission (not really a surprise). Can dividends be automatically reinvested into an ETF?

I'll look to add further funds as time goes by, increasing balance and exposure to other sectors with the help of Morningstar's functionality but most of my cash is currently tied up and earning 5% (not bad for these times so I'm leaving it for a bit longer). So my other question would be am I heading in the right direction with adding some of the other funds I mentioned over time (possibly by slow regular saving), am I missing a key area?

Ta

StevieJ

One thing about the all-share tracker, it is virtually identical to a Ftse 100 tracker as the the large companies dominate.