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Help picking funds

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  • CC, Investment trusts might be a good option, but you have to take into account the fact that cheap ISAs usually don't offer equities, or make a seperate charge plus a dealing fee. This makes them less cheap.
    I'm an Investment Manager. Any comments I make on this board should be not be construed as advice, and are for general information purposes only.
  • cheerfulcat
    cheerfulcat Posts: 3,403 Forumite
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    you have to take into account the fact that cheap ISAs usually don't offer equities, or make a seperate charge plus a dealing fee

    Sorry, CM, you've lost me ( I am a bit fuzzy this morning...) Could you explain what you mean?
  • Sillychuckie
    Sillychuckie Posts: 1,210 Forumite
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    So Ed, are you suggesting that my 2nd choice of funds is perhaps a little too 'safe', and I should venture back towards my first choice (or rather, mix and match so as to follow your sector suggestion)?

    You are right in thinking that all my assets so far are in cash. I am not a homeowner yet and have no mortgage. Every penny to my name (apart from a small pension that was only recently started) lies in cash savings accounts and cash isas.

    Carnet. I plan on using HL to invest and as a result, 4 x £1000 will involve lower charges. I dont mind this as it isnt long before I can get another 4k invested into a further 4 funds. It seems silly to pick ones with only £500.
    I only use bestinvest for research.

    CC. I have not ruled out investment trusts, but it just so happens that the ones I have been selecting were unit trusts. I have just been trying to look for ones in the sectors that have performed ok (top 20) over the last few years or so. It just so happens that these elections were unit trusts. Were any of them to be I.T's, I'd have shoved them into the list. I am happy with an investment in either type.

    Perhaps I just need to make a selection somewhere in the middle of the 2 I picked previously. My first was too risky, and my 2nd probably wasn't risky enough.
  • cheerfulcat
    cheerfulcat Posts: 3,403 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper

    CC. I have not ruled out investment trusts, but it just so happens that the ones I have been selecting were unit trusts. Where can I go for a list of performance figures for JUST investment trusts?
    Again, this is starting to get trickier.

    Perhaps I just need to make a selection somewhere in the middle of the 2 I picked previously. My first was too risky, and my 2nd probably wasn't risky enough.
    Sillychuckie, the point about investment trusts is that you only need one to cover many sectors and areas, instead of having a clatter of UTs. The global growth and global growth & income ITs contain ready made, balanced portfolios.

    You can find performance figures on the AIC site to which I linked, or at trustnet.
    I have just been trying to look for ones in the sectors that have performed ok (top 20) over the last few years or so. It just so happens that these elections were unit trusts.
    AKA looking in the rearview mirror to see where you're going...it's not a bad idea to keep an eye on fund managers' performance and avoid the consistently poor ones but the performance of a fund depends as much on where it is invested as on the manager and I would not like to rely on past returns to predict future ones, where funds are concerned.
  • you did not mention your age or if you are planning on a mortgage in the near furture have you thought about investing in shares via a share dealing acc where you have control when where and what you invest in if as you say you willing for short term loss hopefully for a long term gain
    happy days:D
  • carnet
    carnet Posts: 501 Forumite
    Carnet. I plan on using HL to invest and as a result, 4 x £1000 will involve lower charges.


    No they won't.

    The charges, pro-rata, are exactly the same regardless of the sum invested.
  • Sillychuckie
    Sillychuckie Posts: 1,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Age: 23, still living at home.
    Plan to have a mortgage within 2 - 3 years, but happier to invest the liquid asset I have now for a longer term, as opposed to save it in order to secure a lower mortgage/larger house deposit.
    I would hope any investments I set up now would, over a 10 year span, produce a higher return rate than that which I could save, were I to put it towards paying off my future mortgage.

    This truly is a long term investment, so perhaps I can afford to be a little more risky. It is, at the end of the day, an attempt to produce better returns than if the money was in a savings account for the same period.
    Note: I'm a regular saver fiend, so my returns on savings average around 7-8%, although I do also pay tax and this will most likely soon be at the highest rate.

    The investment is an attempt to produce a higher return than that which would be saved, were I to put it towards a house (therefore requiring a lower mortgage), or if I were to put it all into cash savings.

    At the end of the day, I am simply trying to make use of my equity ISA allowance, whilst I still have the opportunity to do so. I appreciate nothing is guaranteed but want to choose funds that will maximise the potential.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You can phone them and ask for amounts below the ones for investing on the web site - those 1000 minimums don't exist on the phone. So 8 chunks of 500 each is doable.
  • Sillychuckie
    Sillychuckie Posts: 1,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    carnet wrote:
    No they won't.
    OK. My understanding is that there was also a fee per transaction, and 8 investments would count as 8 transactions.
    If what you say is true, I can balance my portfolio more. Thank you.
    Perhaps I will go with 3 x £1000, and then 2 x £500 into more riskier small cap/equities and european investments. For next years ISA, I can spread further afield.

    I'm still not totally sure what I should be picking, but I'll no longer think in terms of 4 x £1000.
  • dunstonh
    dunstonh Posts: 119,853 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You have gone from higher risk to lower risk. I think you could afford to knock out the global bond and replace that with UK Equity income. Artemis high income is a good choice that has good potential whilst being at the lower end of the scale.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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