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Help picking funds

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  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    New portfolio has slightly over half in bonds.I fear this could be disappointing as bond markets are currently underperforming due to rising interest rates.

    Fixed interest funds performance

    However it may be useful for a risk averse investor to learn the risks of bonds- and experience is a great teacher.Too many people think bonds are 'safe', like cash.
    Trying to keep it simple...;)
  • Go for it, silly chuckie! Now two funds the same as my list so we must be right;)
    "Success is the ability to go from failure to failure without losing your enthusiasm" (Sir Winston Churchill)
  • dunstonh
    dunstonh Posts: 119,853 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    bonds may not perform well at this time but they give the investment a defensive position should the markets drop. As long as you rebalance then that will be the main benefit of investing in bonds. Plus, the bond funds considered are not exactly comparable to corporate bond/gilts.
    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.
  • Tabasco
    Tabasco Posts: 139 Forumite
    si1503 wrote:
    Why not just invest in 1k into 4 funds. Keep it simple. Personally I don't see the need for both the Invesco and Jupiter EIFs, if you believe in portfolio theory then you will only invest in the investments with the best returns for a given level of risk, in terms of those 2 funds the risk level is very similar, I'd opt for the one that you consider to be the better of the 2, based on holdings and management and your views on where the economy is heading. Personally I like the invesco high income, its the creme de la creme of EIFs IMO as has held its value well through downturns as well as performing well in bull periods.

    I'd also add in a property holding to lower the risk of the portfolio slightly, perhaps instead of the gartmore. The NU property fund is a consistant performer and invests in bricks and mortar, Std life select also looks promising however it invests in shares as opposed to bricks and mortar, so it is riskier, but still, by investing in one of these funds you will be giving your portfolio exposure to an area you are not already invested in. Next time you look to top things up is when perhaps you can look at a UK smaller cos fund, or global markets along with a bond investment perhaps to offset the risk.

    Good luck with whatever you decide on.

    Just to let you know that both Invesco Perpetual funds mentioned are essentially the same fund. They are both managed by Neil Woodford and the underlying investments are about the same. The only mainly difference is the size.
  • Go for it, silly chuckie! Now two funds the same as my list so we must be right;)
    So if u tell me the others and I copy, our odds of doing well increases further :p

    Anyway, this selection got less nose turning than others and it looks better to me.
    I agree however that it will only be a (more) 'complete' portfolio with some further investments, which I'll try to get in a little next year.

    Worth a punt I feel.
    Thank you all for your fantastic help, it has been a learning experience.

    :T
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