Fund Selection

Cannon_Fodder

I know this is probably going to generate all sorts of "you haven't done that, have you?" responses, but what the heck...

Have plumped for the following;

Artemis European Growth Acc - £1500
Inv Perp Global Smaller Cos Acc - £1500
Inv Perp High Income Fund Acc - £1500
Inv Perp Hong Kong & China Acc - £3000
Inv Perp Monthly Income+ Acc - £1500
Jupiter Merlin Income Portfo Acc - £1500
Jupiter Monthly Income Acc - £1500

My final £3000 was going into Old Mutual UK Smaller Cos until they closed for new funds just as the paperwork was going through...

So, my question is, do you think this is reasonably balanced and I should stick with UK Smaller Cos sector for this final £3000 to go into, or is there something I missed out? Apart from the obvious, US and Japan, I just don't get good vibes from those sectors at the moment...it may be irrational...!!

For info, I have £20K in Cash ISAs, £9K in Regular Savers and Savings Accts waiting for the new tax year, plus £11K in Norwich Property Trust Acc, for the lower risk end of things, so these riskier selections are only 25%ish of my holdings. Put myself as slightly below-average risk profile, but with tendacies to take a bit of a flyer with small amounts, now and then...

(On a side point, I have done this through Willis Owen/Cofunds, and while I've never used the others normally mentioned on here, H-L etc, I've been quite impressed with the service and discounts offered - full 5% on Invesco for example, if I'm reading it correctly...)

Please be gentle...

woody_56

scottish widows- latin america? jim

macca64

Not a recommendation, so obviously DYOR etc. But thought I'd mention if your looking at UK smaller companies. Dan Hanbury (I think) previously of Investec UK Smaller Co. has just taken over the River & Mercantile UK Smaller Co. fund, might be worth a look.

FWIW - I've just stuck £1k in it as part of my £3k Mini S&S ISA for this year.

Cannon_Fodder

Thanks for those thoughts guys, will do some research...

Any one else?

Sillychuckie

macca64 wrote:

FWIW - I've just stuck £1k in it as part of my £3k Mini S&S ISA for this year.

The allowance is 4k, not 3.

tyllwyd

This is just a general question for my own interest (as a complete novice) - the list includes the Invesco Perpetual High Income and Invesco Perpetual Monthly Income, which seem to share a fund manager. Are they too similar to make it worthwhile investing in both?

Ian_W

If you look on Trust Net the monthly income plus is in the UK Other Bond sector - see
https://www.trustnet.com/ut/funds/perf.asp?sort=31&ss=0&txts=&txtss=&columns=13%2C14%2C17%2C22%2C28%2C29%2C30%2C31%2C36%2C37&page=0&booIMA=1&reg1=all&sec=fof&ima=ukothbnd&unit=all&type=all

Whereas both the Income and High Income Funds are in the Equity Income sector.
https://www.trustnet.com/ut/funds/perf.asp?sort=30&ss=0&txts=&txtss=&columns=13%2C14%2C17%2C22%2C28%2C29%2C30%2C31%2C36%2C37&page=0&booIMA=1&reg1=all&sec=fof&ima=ukeqinc&unit=all&type=all

The first one should be less volatile whereas the second one is reliant solely on income from shares. That said, Mr Woodford appears to have done extremely well with all of them - even during the market crash.

macca64

Sillychuckie wrote:

The allowance is 4k, not 3.

Yes of course the allowance is 4k!! My point was that I invested 1k in the R&M Smaller Co fund, as part of the 3k total I have invested this tax year. Sorry for the confusion.

kedj

I've not looked at "Inv Perp Hong Kong & China Acc" fund - but 20% is quite a high proportion in a single fund in a high risk sector. Are you comfortable with the risk level on that £3k?

Personally I like Artemis European and Invesco High Income too.

dunstonh

A risk 6 (out of 10) sector allocated portfolio would have around 5% in global specialist and 3% in emerging markets at this time. It is in those areas, more than any other, that you would want to diversify even further with lots of funds in different areas.

So, I am with kedj in that 20% is high.

Although you are limited to some degree with the amount involved.

Cannon_Fodder

Thanks for the input guys.

I note the 20% comments - not too averse to a bit of risk, but take on board the suggestion of diversification within the 1 sector...I can rebalance a bit with another £7000 in the new tax year.