Can I have some feedback on my selection of funds please

jonj123

Hi

I'm new to investing and would appreciate some feedback on the funds that I have selected to purchase through hargreaves lansdown please. They are:

--> invesco perpetual distribution accumulation
--> aberdeen asia pacific accumulation
--> blackrock gold and general income
--> glg technology equity accumulation
--> First State Global Listed Infrastructure Accumulation

(I've selected these from the HL top 150 funds)

I also have a simple question: are yields given irrespective of growth of the fund? I understand yields are variable and what is mentioned on the site is only a prediction based on previous record but if the yield is 2% per annum does that mean I will get 2% in addition to any growth that the fund has had?

I'd appreciate any advice. Many thanks

Jegersmart

As far as I can see all these are good quality funds. How they relate to your investment aims I cannot possibly say however.

As to your other point, hope this helps :

http://www.investopedia.com/terms/y/yield.asp#axzz22Hx4pJUR

Linton

Agree with Jegersmart, all your funds look good ones for their sectors. Plus your sector coverage is broad ranging from relatively safe, such as the balanced bond-weighted IP Distribution fund, through to the higher risk Gold & General fund. You dont say the time scale over which you plan to invest nor the relative amounts invested in each fund. These factors are important.

I do suggest that you base your choice primarily on a consideration of what the funds are investing in rather than relying on the HL list.

jonj123

Thanks for the comments. I only want to invest 5K for the time being and maybe add more in future (i.e. 1K in each fund). I am 23 and I do not need the 5K for a long time so I'm happy to leave it there for 5 years or more.

jimjames

Some of the funds look to be fairly high risk as single sectors which is fine if you are aware of it.

Any reason why the IP fund? The IP Income/High Income are very well rated and may be more appropriate but are equity based not bonds. There were suggestions in the papers I read at the weekend that the bond market may be getting overheated and some managers are stopping new investments.

Masomnia

Out of curiosity, why the income units in the Blackrock G&G fund but accumulation in the others?

Linton

jimjames wrote: »

Some of the funds look to be fairly high risk as single sectors which is fine if you are aware of it.

Any reason why the IP fund? The IP Income/High Income are very well rated and may be more appropriate but are equity based not bonds. There were suggestions in the papers I read at the weekend that the bond market may be getting overheated and some managers are stopping new investments.

It does depend very much on the type of bonds. Ultra safe bonds, eg Gilts, are expensive. From the Trustnet data on the IP distribution fund, it's 60% invested in higher risk/higher return bonds which havent experienced the same price increase as they are seen to be more of a risk in bad times. Their good returns are countered by their greater chance of going bust. Note that this isnt a great worry for a fund as it holds bonds issued by a large number of different companies.

jonj123

jimjames wrote: »

Any reason why the IP fund? The IP Income/High Income are very well rated and may be more appropriate but are equity based not bonds. There were suggestions in the papers I read at the weekend that the bond market may be getting overheated and some managers are stopping new investments.

OK in that case I will change the IP fund to IP Income/High Income if it's likely to do better.

Masomnia wrote: »

Out of curiosity, why the income units in the Blackrock G&G fund but accumulation in the others?

I didn't know there was a difference between the two lol. The countries and sectors they invest in seems to be identical so which shall I choose?

I am also a bit unsure about BlackRock Gold & General Income fund. It seems to have had a bad time recently but I'm hoping it will pick up.

jonj123

Also another fund I have in mind of is Troy Trojan Income Fund Class I Income.

Jegersmart

jonj123 wrote: »

Also another fund I have in mind of is Troy Trojan Income Fund Class I Income.

This one has been a really good performer and I like the manager and his methodology.

Please bear in mind that I personally would never take advice or make a choice based on recommendations from anonymous people on a website.......

J

grey_gym_sock

Jegersmart wrote: »

Please bear in mind that I personally would never take advice or make a choice based on recommendations from anonymous people on a website.......

yes, but would you take advice from anonymous ppl on a website about whether to take advice from anonymous ppl on a website?

but seriously: yes, it should be a case of getting some new ideas, expanding your knowledge, and then making up your own mind.