Buying funds via direct debits

RobStaffs

Does anyone do this ?Up until recently I used to purchase in lump sums but now have moved to monthly purchase over a range of funds..On a seperate issue would FTSE tracker funds be a good option at present?

sorcerer

Yep I do this, and have done for several years, I use the technique of pound cost averging to buy my funds. That why I don't have to try to time the market which is almost impossible to do.

RobStaffs

sorcerer wrote: »

Yep I do this, and have done for several years, I use the technique of pound cost averging to buy my funds. That why I don't have to try to time the market which is almost impossible to do.

would be grateful if you could explain what pound cost av is?

dunstonh

On a seperate issue would FTSE tracker funds be a good option at present?

What FTSE tracker funds in particular? How would they fit with your risk profile and objectives?

RobStaffs

dunstonh wrote: »

What FTSE tracker funds in particular? How would they fit with your risk profile and objectives?

My risk profile at present is 50% in Balanced Funds,35% in Cautious Funds and the remainder in UK Equity and Corporate Bonds.All in about £36k.Even at the most optimistic I cant see these recovering to give me what I originally expected.The combined cummulative growth is still about 10% but the last few weeks have really taken their toll.I am not too sure about the tracker fund.Probably a FTSE all share one.

dunstonh

RobStaffs wrote: »

My risk profile at present is 50% in Balanced Funds,35% in Cautious Funds and the remainder in UK Equity and Corporate Bonds.All in about £36k.Even at the most optimistic I cant see these recovering to give me what I originally expected.The combined cummulative growth is still about 10% but the last few weeks have really taken their toll.I am not too sure about the tracker fund.Probably a FTSE all share one.

at the moment you have some portfolio funds that already invest in areas around the world. You have decided already to increase your UK exposure with a UK equity fund and reduce the volatility with corp bond funds. Why do you want to increase your UK equity exposure further?

For reference, most of the model portfolio data supplied to IFAs has been reducing UK equity exposure for the last few years across most risk profiles. You are doing the reverse of that. What is it about UK equity that you find particularly attractive?

RobStaffs

dunstonh wrote: »

at the moment you have some portfolio funds that already invest in areas around the world. You have decided already to increase your UK exposure with a UK equity fund and reduce the volatility with corp bond funds. Why do you want to increase your UK equity exposure further?

For reference, most of the model portfolio data supplied to IFAs has been reducing UK equity exposure for the last few years across most risk profiles. You are doing the reverse of that. What is it about UK equity that you find particularly attractive?

You are assuming I am well informed.Some of my ISA's have been very long term with one at least returning 35%.. I am learning day by day. I am not looking for massive returns but willing to take a bit of risk.I tend to select my funds using league tables for funds and managers.I have a natural aversion to higher risk investment .In terms of the UK then I am holding out for the Govts austerity measures to actually make the UK a safe haven for investors.I understand we are in a Global economy and all that but I am making the simplistic assumption that the FTSE might be recover on the back of a better UK economy.

dunstonh

You are assuming I am well informed.

Yes. To be picking single sector funds indicates that you would typically be working to some strategy. That or its random hit and hope

I have a natural aversion to higher risk investment

Developed world equity has been increasing in risk over the last few years whilst emerging countries risk has slightly fallen back in risk. Just in the last quarter, Financial Express reported that UK equity was pushing up in risk further.

How you invest is totally up to you. If you have reasons and a strategy for your investments and you are happy with that then fine. However, do remember that the world is a big place and the UK is a small island and most of the growth potential (and failure potential) is not in the UK. It is been a very very long time since UK equity has rated well in the performance figures.

RobStaffs

dunstonh wrote: »

Yes. To be picking single sector funds indicates that you would typically be working to some strategy. That or its random hit and hope



Developed world equity has been increasing in risk over the last few years whilst emerging countries risk has slightly fallen back in risk. Just in the last quarter, Financial Express reported that UK equity was pushing up in risk further.

How you invest is totally up to you. If you have reasons and a strategy for your investments and you are happy with that then fine. However, do remember that the world is a big place and the UK is a small island and most of the growth potential (and failure potential) is not in the UK. It is been a very very long time since UK equity has rated well in the performance figures.

Appreciate your comments.Just checking my funds(excluding Corporate Bond) again then it is further broken down to

UK Equities 43%
International Equities(mainly US) 21%
UK Gilts 14.6%
Cash 6%
UK Bonds 4.9%
Unclassified Funds 4.9%
International Bonds 3.5
Others

Might freshen it up a bit moving forward.Any ideas?

dunstonh

RobStaffs wrote: »

Appreciate your comments.Just checking my funds(excluding Corporate Bond) again then it is further broken down to

UK Equities 43%
International Equities(mainly US) 21%
UK Gilts 14.6%
Cash 6%
UK Bonds 4.9%
Unclassified Funds 4.9%
International Bonds 3.5
Others

Might freshen it up a bit moving forward.Any ideas?

To give you an indication of my current portfolio allocations, a risk 7 out of 10 portfolio has 14% allocated to UK equity. Risk 6 has 12% allocated to UK equity. Risk 9 doesnt have any UK equity. Risk 6-7 is consistent with most balanced managed funds to give you some context.

If I look back two years, UK equity was 21% on a risk 7 portfolio. So, you can see the scale of the reduction.

I am not saying the actuaries I use are correct and will give you a better position. However, it does give you something to think about.

RobStaffs

dunstonh wrote: »

To give you an indication of my current portfolio allocations, a risk 7 out of 10 portfolio has 14% allocated to UK equity. Risk 6 has 12% allocated to UK equity. Risk 9 doesnt have any UK equity. Risk 6-7 is consistent with most balanced managed funds to give you some context.

If I look back two years, UK equity was 21% on a risk 7 portfolio. So, you can see the scale of the reduction.

I am not saying the actuaries I use are correct and will give you a better position. However, it does give you something to think about.

Thanks.How would I get my risk score for my portfolio.All of my funds withthe exception of 2 are invested via the H_L Facility.