Invest in new funds or 'old' funds?

Newbie2saving

Hi all,

Just a question for you experienced lot. Wondered how many of you investors take the plunge when you see a new fund being launched, or are you more comfortable with the experienced (not always I know) and older funds? Maybe some of the new funds are well marketed and not that great in actual fact?

Query arose as I noticed H-L are launching 2 new funds at the moment and have sent literature out etc which must cost a fortune to produce!

utigers

If it appeals I will put it on my watchlist especially if it is HL pushing the fund, but I wouldt dive straight in. Leave it 18mths to 24mths.

I'm interested to know how people decide between very similar funds run by the same manager. Philip Gibbs International Financials and his financials for example.

Newbie2saving

utigers wrote: »

If it appeals I will put it on my watchlist especially if it is HL pushing the fund, but I wouldt dive straight in. Leave it 18mths to 24mths.

I'm interested to know how people decide between very similar funds run by the same manager. Philip Gibbs International Financials and his financials for example.

H-L really do market funds well! Easy to be drawn in as a new investor! I am now going through the stage of not wanting to miss out. I need to stick to my investment plan and not be swayed.

That is a good point re managers, do you mean the two Jupiter funds International Financials and Financial Opportunities?

StevieJ

utigers wrote: »

If it appeals I will put it on my watchlist especially if it is HL pushing the fund, but I wouldt dive straight in. Leave it 18mths to 24mths.

I'm interested to know how people decide between very similar funds run by the same manager. Philip Gibbs International Financials and his financials for example.

In reality I don't think those funds are run by the same manager anymore.

StevieJ

Newbie2saving wrote: »

H-L really do market funds well! Easy to be drawn in as a new investor! I am now going through the stage of not wanting to miss out. I need to stick to my investment plan and not be swayed.

That is a good point re managers, do you mean the two Jupiter funds International Financials and Financial Opportunities?

I invested in Psigma income after a monster push by H&L, they are still well down after sticking with the banks for too long and then dumping them at the bottom

Newbie2saving

StevieJ wrote: »

I invested in Psigma income after a monster push by H&L, they are still well down after sticking with the banks for too long and then dumping them at the bottom

Ouch! Thanks for that, a real reality check. That is what I mean, I need to be wary of the advertising campaign, lots of pretty pictures and graphs!

talexuser

New funds are a risk unless you know the track record of the manager, and even this can fail if they change firms, teams and research style.

Saying that I took a punt with a finite part of the portfolio on a relatively new fund (Artemis Strategic Assets) purely because of the money the manager made for me over many years in Jupiter Income when it continually topped the performance table years ago.

Otherwise I like to see a proven record of at least 3 years and better 5.

The firms make all their money by continually churning out new funds in a blaze of publicity while quietly forgetting and dropping the poor performance of the vast majority of their previously trumpeted funds which fail even to keep pace with their index.

masonic

Having no track record is a big put off for me. I'd need a pretty compelling reason to go with a new launch if there's an established fund that does the same thing well.

Newbie2saving

talexuser wrote: »

Saying that I took a punt with a finite part of the portfolio on a relatively new fund (Artemis Strategic Assets) purely because of the money the manager made for me over many years in Jupiter Income when it continually topped the performance table years ago.

I went for this as well on manager track record, as I have with another relatively new fund. Fingers crossed our logic will pay off!

utigers

Newbie2saving wrote: »

I went for this as well on manager track record, as I have with another relatively new fund. Fingers crossed our logic will pay off!

This is one still on my watchlist, as again it was pushed very hard by HL. As yet it isnt outperforming the UK funds I already have.

I can understand the justification of HL though as he has a good track record.

StevieJ

utigers wrote: »

This is one still on my watchlist, as again it was pushed very hard by HL. As yet it isnt outperforming the UK funds I already have.

I can understand the justification of HL though as he has a good track record.

I hold that one as I like the make up and versatility of the fund, I don't expect it to outperform in an increasing market but provide some protection in a declining one.