advice on this investment

Loughton_Monkey

daniel80 wrote: »

So are you saying its not a good investment for our present needs, i now know we paid over the odds to set up the investment but thats done now. Would you say we are ok to stick with it as i think the mix is pretty good.I know everything is a gamble and i have looked around and this seems quite a standard type for what it is, i suppose if we could see into the future timing is of the essence.

It's like having a mouthful of hot food. Whatever you do next is wrong. Leaving it there will provide the best 'return' from it but hindsight will tell you that there were far better options.

Coming out now could correct the situation, but a 'better' option is now going to struggle to make up the exit fees as well.

daniel80

Yeh i agree who knows whats best but now i know the make up of the fund i am quite happy. There are bound to be better ones but also there are bound to be worse ones i will sit tight for now. Thanks for all comments.

daniel80

After trying not to look at the performance of this fund for a while I checked it out today. The fund has risen about £12000 [after costs] over the last four years. As you can swap the funds around in the bond I am thinking of adding Invesco perpetual high income life which is on the list of available funds. I have to decide which to swap out of, Scottish Widows mixed life or Scottish Widows property life, which was at the start split 80% mixed 20% property. At the moment the mixed fund value is about £91000 and property £17000. Any one have any views on this, I think for example I could just switch 50% of say the mixed fund or similar.

Ark_Welder

daniel80 wrote: »

After trying not to look at the performance of this fund for a while I checked it out today. The fund has risen about £12000 [after costs] over the last four years. As you can swap the funds around in the bond I am thinking of adding Invesco perpetual high income life which is on the list of available funds. I have to decide which to swap out of, Scottish Widows mixed life or Scottish Widows property life, which was at the start split 80% mixed 20% property. At the moment the mixed fund value is about £91000 and property £17000. Any one have any views on this, I think for example I could just switch 50% of say the mixed fund or similar.

The property fund does invest largely in physical buildings and so should show a lowish correlation to equities. I haven't been able to verify that the Invesco Perpetual life fund has the same investment mandate as the OEIC, so will do need to verify this for yourself. On the assumption that it does, then it is largely an equities fund that is UK-centric, whereas the Scottish Widows' mixed fund has more bonds and overseas equities. Depending upon your views of the commerial property market, maintaining the current allocation might be preferable - for the sake of diverification.

Scottish Widows Mixed
Scottish Widows Property

daniel80

Thanks for your views Ark Welder, much appreciated. The main reason why I was looking at Invesco Perpetual was because it is as I understand a defensive fund, which most of the reading I have been doing lately recommend. I know things are always changing but the fund seems quite steady. I think I would keep the 20% com property leave 50% mixed life and say 30% Invesco P high income. Does anyone with more knowledge than myself think this would be a good idea.

pqrdef

What's the initial charge on the Invesco, and will you get any rebate on it?

daniel80

Hi reading the bond regulations we are allowed to switch funds up to 12 times at no extra cost. We have about 18 months to go and then if we wanted we could withdraw the whole amount with no exit penalty's.

daniel80

By the way that is 12 times each year which we have not used at all yet but in todays climate I think a percentage in a defensive fund would be an advantage.

daniel80

Forgot to say mid 50`s now and starting to take out a bit of risk.

daniel80

This funds 5 years is up in August so we can cash in with no costs. I did swap the property for I P high income and just bought £20000 of S W JPM emerging market life from the mixed life total. If we wanted to cash this in I know we will have to pay tax on profits made. Would this only be on profits made after capital gains tax limit and if so would it be capitals gains tax limit x5 {years] At the moment the funds value is about £115000. Thanks in advance for any information on this.