Fund Choices - Advice Please

Newbie2saving

Hi all,

As a new investor I have a S&S ISA with H-L that has been running for nearly 12months and I’ve transferred a further sum in cash over from an old cash ISA. The money will be available in about 3wks time to add a further 3-4 funds to my portfolio. I originally started looking at high risk funds, EM’s (like Invesco Perpetual Latin America & Fidelity EMEA). The more and more research I do, the less comfortable I feel and I like the look of the following;

Neptune Global Equity
M&G Global Basics

This is due to their investing approach, holdings, reviews and Fund Managers. Aware past performance is no indiator for the future.

I would also like to add a UK Smaller Companies fund. Something like Marlborough Special Situations, Standard Life UK Smaller Companies Retail or Old Mutual UK Select Smaller Companies. Maybe even a European fund too.

Any thoughts, comments, advice???

TIA.

Red_Cat

Hi there,

What is your attitude to risk?

Are you a long or medium term investor?

Can handle volatility?

These are the sort of questions you need to answer for yourself to give you an idea of the sorts of funds you will be comfortable with.

Newbie2saving

Red_Cat wrote: »

Hi there,

What is your attitude to risk?

Are you a long or medium term investor?

Can handle volatility?

These are the sort of questions you need to answer for yourself to give you an idea of the sorts of funds you will be comfortable with.

Sorry Red Cat you're right, and the sort of things I have missed are imperative before anyone can comment (including myself knowing what I want from this investment), thanks for the reminder.

Overall I am a balanced investor, however this ISA pot is my high risk portfolio which I am prepared to have higher risk for higher rewards and prepared for fluctuations and volatility in the markets. I am a long term investor and this money is not going to be needed for >15-20 yrs.

Thanks again.

Loughton_Monkey

Many of us could wax lyrical about various funds that have performed well for us, like my Neptune Russia up almost 25% in 4 months, but nobody can tell about the future, and this is not a 'share-tipping' forum nor will you get 'advice'.

My recommendation is not to think, initially, of funds. Why not think through where you want to 'be'? Do you think you want to be, say, in India, or the whole of Asai? In Brazil or other emerging markets? In Precious metals or other Natural Resources? In UK bonds or America?

Only after that should you then use Trustnet (or HL or similar) to research which funds look well managed and have the 'right' charges/initial rebates. Most of the time you will have many choices for the same 'focus' and could go with Neptune or Jupiter or Invesco Perpetual etc. You pay your money and make your choice.

Totton

Standard Life UK Smaller Companies is a good fund at the moment as is M&G Global Basics, Neptune Global has been through a rough patch but recovering. Overall your fund choices are not those of a balanced investor though, still high risk imho. If happy to run with them take a look at Ecclesiastical Amity International as a possible alternative to Neptune, it has done better during the recent turbulence. I am likely to pop 5% into the SLI fund shortly and have 3% in the M&G fund, sold out of the Neptune fund some time ago but keep an eye on it as a possible entrant to my portfolios.

Newbie2saving

Loughton_Monkey wrote: »

Many of us could wax lyrical about various funds that have performed well for us, like my Neptune Russia up almost 25% in 4 months, but nobody can tell about the future, and this is not a 'share-tipping' forum nor will you get 'advice'.

My recommendation is not to think, initially, of funds. Why not think through where you want to 'be'? Do you think you want to be, say, in India, or the whole of Asai? In Brazil or other emerging markets? In Precious metals or other Natural Resources? In UK bonds or America?

Only after that should you then use Trustnet (or HL or similar) to research which funds look well managed and have the 'right' charges/initial rebates. Most of the time you will have many choices for the same 'focus' and could go with Neptune or Jupiter or Invesco Perpetual etc. You pay your money and make your choice.

Thanks for reply, I used the wrong word, I know this isn't a site for investment 'advice', should have said comments or thoughts as I am interested in what people think on this site as I've picked up some useful information in the past, I will make my own mind up though in the end. I liked your point on 'where I want to be' - this is more difficult, I like EM's but worried about the bubble, that is why I have chosen the M&G Global Basics fund, a cautious approach to investing in EM's.

Your last point (sorry I don't know how to use the mulit quote function) on the different companies is where I struggle to make my final choices, sometimes they look so similar! I know some people have favourite fund managers or investment teams, but as a novice I don't know the bad from the good companies - I suppose it is all about research (and sometimes good fortune!). Thanks again.

Newbie2saving

Totton wrote: »

Standard Life UK Smaller Companies is a good fund at the moment as is M&G Global Basics, Neptune Global has been through a rough patch but recovering. Overall your fund choices are not those of a balanced investor though, still high risk imho. If happy to run with them take a look at Ecclesiastical Amity International as a possible alternative to Neptune, it has done better during the recent turbulence. I am likely to pop 5% into the SLI fund shortly and have 3% in the M&G fund, sold out of the Neptune fund some time ago but keep an eye on it as a possible entrant to my portfolios.

Thanks for the info Totton. Yes, I like SLI, it does seem to cover the basics of what I want from this type of fund. I will have a look at the Ecclesiastical Amity Int fund in comparison to Neptune. I've had the Neptune fund in my virtual portfolio with H-L for 5months and it's been doing well, but know it suffered in the past.

I know these aren't funds for a balanced investor, but I am willing to see how this pans out with this pot.