Can I have some feedback on my selection of funds please

jamesd

Are you really sure that you want to swap out a mainly bond fund, Invesco Perpetual Distribution, which also has around 15% in equities, for a pure equity Invesco Perpetual High Income? It's not true that they have the same holdings, though the equity portion does have the same manager and those equities feature significantly in the top ten holdings, so people who just look at those could be caught out.

jonj123

Totton wrote: »

However I don't really get the mix of income and growth unless you need the income

Many thanks for that. Am I right in thinking that income funds are funds that invest mainly in bonds? Also why would it be bad to have income fund together with growth funds?

With regards to swapping IP distribution with IP high income, I'm really not sure which to choose yet but I may decided to change the Troy Trojan income to Troy Trojan Fund Class I Accumulation in which case I think it would be better to stick with IP high income to give the portfolio more variety.

ColdIron

jonj123 wrote: »

Many thanks for that. Am I right in thinking that income funds are funds that invest mainly in bonds? Also why would it be bad to have income fund together with growth funds?

Income funds pay out 'income' in the form of money, this is good if you are older and need the cash to pay bills and holidays

Accumulation funds automatically reinvest the 'income' in the fund and increase the unit price. If you are younger you probably don't need the cash but do want the value of your fund to grow

Bonds and equities are different, you need to read up on this but both usually come in Income or Accumulation flavours

Jegersmart

srcandas wrote: »

But my point is any strategy will give meaning to fund selection. If you have no strategy then your dart throwing approach might offer an alternative route

Despite your critique of a strategy is not some strategy better than nothing at all?

---

ps. jonj why do you care if there is an overlap ? If you took an alternative route and bought shares in 300 companies are you saying all holdings should be of equal value? And if one of your chosen funds has a heavy allocation in one company is that not exactly the same result as an overlap of two medium holdings?

I am not criticising your example of a strategy, I am purely also using it to make a point.......^^

J

Jegersmart

jonj123 wrote: »

Many thanks for that. Am I right in thinking that income funds are funds that invest mainly in bonds? Also why would it be bad to have income fund together with growth funds?

With regards to swapping IP distribution with IP high income, I'm really not sure which to choose yet but I may decided to change the Troy Trojan income to Troy Trojan Fund Class I Accumulation in which case I think it would be better to stick with IP high income to give the portfolio more variety.

use trustnet.com and make your own decision:)

J

Jegersmart

jonj123 wrote: »

Many thanks for that. Am I right in thinking that income funds are funds that invest mainly in bonds? Also why would it be bad to have income fund together with growth funds?

With regards to swapping IP distribution with IP high income, I'm really not sure which to choose yet but I may decided to change the Troy Trojan income to Troy Trojan Fund Class I Accumulation in which case I think it would be better to stick with IP high income to give the portfolio more variety.

No, a lot of funds regardless of asset class invested have income units - this means that any income in the form of coupon, dividend or whatever is normally paid out depending on your preference, accumulation is as the word suggests...

J

p.s. you really need to read up on this before making any decisions

sorcerer

Developing a strategy is always a good idea, it can help with focusing your efforts. Think about how long you are going to hold for, what is your main objective, how much money do you want to make. Are you a lowrisk or high risk person? etc.

Jegersmart

sorcerer wrote: »

Developing a strategy is always a good idea, it can help with focusing your efforts. Think about how long you are going to hold for, what is your main objective, how much money do you want to make. Are you a lowrisk or high risk person? etc.

Also look at markets and do research. Look at which areas are severely down and the ones that are higher than ever. Helping to time your entry (and exit if relevant) can be important. Remember that diversification may not always be desirable.

GL

J

srcandas

sorcerer wrote: »

Developing a strategy is always a good idea, it can help with focusing your efforts. Think about how long you are going to hold for, what is your main objective, how much money do you want to make. Are you a lowrisk or high risk person? etc.

And then having done all that the most difficult one of all; you have to decide a strategy of where to put your money to achieve your objectives. I guess before picking funds I'd need to answer that :beer:

jonj123

I know it's important to have a strategy but I am new to investing and don't have a solid strategy as such. I have looked around for funds that are recommended and have performed well in the past and the reason I am seeking advice on this forum is to make sure there isn't something really basic that I have forgotten to take into consideration when selecting the funds.