3k to invest in funds.

oliversw

I posted a few days ago and would like to thank the people for their advice.

Now the the funds I was thinking after doing a little research, of buying 1k of the following:

A ftse tracker
A bond fund
An emerging markets fund

Would these compliment each other?, my methodology behind these are the bond fund would counter against my portfolio decreasing in value. I believe that the ftse still has room to grow throughout the year and I wanted a fund (emerging markets) that was a bit more adventurous I don't mind a bit of risk.

Newbie2saving

I've held my S&S ISA for >12months and I have done a lot of research, yet not qualified to say whether your chosen funds compliment one another, but I have done the same as you are suggesting in terms of a ftse tracker and emerging markets. I personally feel that I wanted both active and passive funds as I wasn't confident to go with one or the other so thought that they could work alongside one another in my ISA portfolio.

Good luck with your investments!

oliversw

Newbie2Saving,
Thanks for your input. May I ask what growth you achieved within those 1st 12 months, dividends included into the overall growth figure.

DavidHayton

Good luck!
You are thinking along the lines that I would be thinking in your situation. The three funds are different beasts and they will therefore teach you different things as you monitor their performance. Be careful with the bond fund that you invest in ... it may be that bonds will struggle if interest rates rise but, as always, expected developments should already be priced in.
David

Newbie2saving

I've had approx 14% growth in 12months, but two of my funds are in volatile markets and could drop by >40% so I am aware that they are high risk. Also past performance is not a guarantee that they will perform that well in future. I am looking to add another 3 funds at the moment and once again thinking emerging markets or global growth.

Have you looked at Morning Star uk they have a really useful x-ray tool which gives you a breakdown on sectors %, countries and holdings overlap, helped when I was doing my initial research and still refer to it now.

PS. Both of my active funds are acc funds so reinvested.

oliversw

Of course past success shouldn't mean future success, but I am looking to hold for a few years. I'm curious to what your emerging markets is geared towards, I want a fund that is geared more towards Russia, Brazil and India with a small % in china ( I feel it has a little more to run).

As for the Morning Star I've yet to look but I will take a look into it. I still have a lot to learn

Newbie2saving

I have a China and and Indian fund plus a FTSE UK tracker and I want a Latin America and emerging Europe fund. Yes I know it's a risky approach, but one I'm prepared to take. I like the sound of more exposure to Brazil with the world cup, olympics, GDP, land mass, young pop, natural resources - over time I think (as a newbie!) this should be a good investment.

oliversw

I think risk is fine as long as you can hedge it, in my opinion if someone is not looking to gain risk on their money they should put it in a bank account.

They are the reasons I am liking brazil as well. As for russia hosting the world cup can only boost its outlook one would think.

Totton

With £3k to invest you should consider something like Jupiter Merlin Growth, a gain of 18% in 2010 covers the higher fees from a fund of funds and this fund gives you a good mix of growth orientated funds as a base for more exotic stuff later on. An alternative would be the Merlin Balanced fund if you wanted some bonds but they are likely to be a negative influence for awhile.

To start with I would look to build a solid core holding, if adventurous consider First State Global Emerging Mkt Ldrs or similar.

HTH,
Mickey

oliversw

Thanks for the advice Totton I shall look into it.