What funds are people investing in?

cashbackproblems

Hi guys

I am looking at regularly investing in small amounts in a few funds and all my past choices have dropped over last yr so need some advice, i currently invest 100pm in Aberdeen Emerging Markets and AXA Framlington Global Technology Fund.

I have small amounts invested in these but stopped and all are down especially the Russia one which is down 30% !!

First State Latin America
Accumulation Units

Neptune Russia & Greater Russia
Class A Retail Accumulation

JPMorgan Natural Resources
Accumulation Units


Can anyone recommend any others, am prepared to take medium risks. I realise the above have only fallen in the short term and 1yr is not a long enough period but just not sure if i have made right choices. Looking at holding 5-10yrs+

Rollinghome

All the funds you've mentioned are high risk so you shouldn't be too surprised at a fall of 30%. Even 5-10 years isn't long when financial markets are in totally uncharted waters and just about anything could happen from here.

Don't misunderstand the nature of risk: high risk doesn't mean you'll get a higher return. You might get a higher return but equally you might see a much greater loss.

You're paying high management fees on those funds but the biggest influence on returns is asset allocation. At £100 a month, the amount you're investing is small so unless you're confident in your abilities you're likely to be better off using more generalised funds where the manager you're paying decides the allocation.

You could do worse than looking a a couple of big Global Growth ITs with savings schemes such as F&C etc. The lower management costs of ITs generally translate into better returns. For most people the important bit is the overall risk of your pf so you need to take account of all your other other savings and investments.

srcandas

Great post rollinghome. Should be a sticky :beer:

But cashbackproblems to your question I'm looking towards China. Internal China and not the exporters.

I think the Chinese government knows that they need growth and in the absense of an external one they will have to look inwards.

I also like emerging market debt but as rolling says it is high risk.

And longer term Brazil equity.

But whatever you do all the very best of luck

cashbackproblems

Rollinghome wrote: »

All the funds you've mentioned are high risk so you shouldn't be too surprised at a fall of 30%. Even 5-10 years isn't long when financial markets are in totally uncharted waters and just about anything could happen from here.

Don't misunderstand the nature of risk: high risk doesn't mean you'll get a higher return. You might get a higher return but equally you might see a much greater loss.

You're paying high management fees on those funds but the biggest influence on returns is asset allocation. At £100 a month, the amount you're investing is small so unless you're confident in your abilities you're likely to be better off using more generalised funds where the manager you're paying decides the allocation.

You could do worse than looking a a couple of big Global Growth ITs with savings schemes such as F&C etc. The lower management costs of ITs generally translate into better returns. For most people the important bit is the overall risk of your pf so you need to take account of all your other other savings and investments.

Thanks for the reply. I knew they would be high risk but have confidence emerging markets will come good over the years, is the AMC is 3% what am i paying per year, or does it depend on the fund share price? All my funds are accumulation and not sure how fees work

Also is it really worth looking at IT's or safer/low risk funds such as Invesco Perpetual? I dont know anything about IT can i pay into them monthly? How do you choose out of these, im with HL and use the Vantage ISA.

F+C

AIT Active Capital Trust Ordinary 0.1p BSET British Assets Trust Ordinary 25p EAT European Assets Trust Nv EUR 0.46 (Regd) FCI F & C Capital and Income Inv Trust Ordinary 25p Shares FCS F & C Global Smaller Companies IT Ordinary 25p Shares FPEO F & C Private Equity Trust Ordinary 1p FPER F & C Private Equity Trust Restricted Voting Shares 1p FSC F & C US Smaller Companies IT Ordinary 25p Shares FRCL Foreign & Colonial Investment Trust plc Ordinary 25p ICTA Investors Capital Trust plc Ordinary 0.1p A Shares ICTB Investors Capital Trust plc Ordinary 0.1p B Shares ICTU Investors Capital Trust plc Units (3 Ord A Shares and 1 Ord B Share)

mr_fishbulb

cashbackproblems wrote: »

I am looking at regularly investing in small amounts in a few funds and all my past choices have dropped over last yr so need some advice

..........

Can anyone recommend any others, am prepared to take medium risks. I realise the above have only fallen in the short term and 1yr is not a long enough period but just not sure if i have made right choices. Looking at holding 5-10yrs+

If you originally bought into those funds with a view to 5-10 years, how come you don't see them them cheap now, and look to put more money into them? That's what I'm considering with my natural resources fund.

cashbackproblems

Thanks will look at China.

Also have been looking at Trackers, the HSBC ones have a £1/2 p/m platform fee and a 0.37% TER but Blackrock + L+G have no charge and TER of 0.60-1%. Which is cheaper, does the TER for HSBC include the monthly fee (if so i will consider these)?

So looking at:

BlackRock Emerging Markets Equity Tracker
Accumulation units | Global Emerging Mkts

BlackRock UK Equity Tracker
Accumulation units | UK All Companies

maybe

BlackRock Continental European Equity Tracker
Accumulation units | Europe Excluding UK

cashbackproblems

mr_fishbulb wrote: »

If you originally bought into those funds with a view to 5-10 years, how come you don't see them them cheap now, and look to put more money into them? That's what I'm considering with my natural resources fund.

Yes i need to remind myself that this is not an individual share so not one bad company and price reflects the market/industry and it will recover.

StevieJ

Rollinghome wrote: »

Don't misunderstand the nature of risk: high risk doesn't mean you'll get a higher return. You might get a higher return but equally you might see a much greater loss.
.

It also doesn't always seem to mean that you have a high chance of losing money, from what I can gather it appears to be more time reliant, i.e. the recommendations for a minimum holding time of say 5 or 10 years. The risk scale puts an investment in the Ftse 100 as moderately high risk (say 7 on a scale of 10) but I don't think that suggests that the Ftse is a higher risk than a low risk category like cash over the longer term, (quite the opposite actually).

cloud_dog

For someone starting out with a monthly investing plan falling stock markets are what you really want.

Psychologically it is difficult to take but is just what you need, buying more units with your money. Ideally you want the markets to stagnate / drop for the first few years and then for them to take off.

As others have mentioned we are in uncharted territory for finances but if they manage to get their act together and promote growth then you should do ok (all IMHO etc, etc, etc...... WTFDIK).

bigadaj

Does sound a bit like the financial services industry posting though, "it's a good thing that you're losing money now, as you'll make more in the future."

Received wisdom is often a terrible, and ephemeral thing, as the recent post here stating that "ignore the flat/ falling stock markets, it's the dividends"; this is from the people who ignored dividends until 2007!

tHe sensible answer is to review your fund choices on a regular but not constant basis, I'd say three to six months, and see if they are, or are likely to, meet your expectations.

cloud_dog

bigadaj wrote: »

Does sound a bit like the financial services industry posting though, "it's a good thing that you're losing money now, as you'll make more in the future."

Received wisdom is often a terrible, and ephemeral thing, as the recent post here stating that "ignore the flat/ falling stock markets, it's the dividends"; this is from the people who ignored dividends until 2007!

tHe sensible answer is to review your fund choices on a regular but not constant basis, I'd say three to six months, and see if they are, or are likely to, meet your expectations.

are you a manager by any chance? Its just that usually when i find someone saying something without saying anythng they tend to be managers, i.e nice words but no real substance.

So the OP is investing £100pm in to 2 funds and you recommend they review and possibly switch after 3 to 6 months; do you really believe this is the the best course of action for them?

Perhaps you could explain how you can assess a 5 to 10 year expectation after 3 to 6 months?