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investment in funds - counter to JPM Natural Resources

Hi, I am currently putting £50 a month into JPM Natural Resources Fund. I know it isn't currently doing too well, but it is for the long term and I think, long term, that commodities will do well.

I may have another £50 to drip into another fund. What would people recommend as a counter balance? Again, it is for the long term - say 10 years at the earliest, possibly longer.

Cheers.

Comments

  • dunstonh
    dunstonh Posts: 118,021 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    For a regular contribution, 10 years is actually short term. Using a very high risk fund during periods of volatility is not a bad thing but you will want to be moving it down the risk scale within a few years unless you are particularly high risk and have the capacity to afford large losses.

    At the moment, you are putting eggs in one very narrow high risk area. Do you intend to pick another high risk area or try and reduce the risk somewhat?
    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.
  • srcandas
    srcandas Posts: 1,241 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker
    edited 3 November 2012 at 2:34PM
    I may have another £50 to drip into another fund. What would people recommend as a counter balance? Again, it is for the long term - say 10 years at the earliest, possibly longer. Cheers.

    I think over that time period China has to be a target. Chinese opportunities that invest in the 4 dragons as well as China have done me well and I expect a lot more.

    The other one I have found giving good return for good reason (well in my mind ;)) is EM debt. Someone here said a while back that EM equities do not deliver because of the massive turnover. i.e. the markets go up but many companies grow for a while then disappear, new companies replacing them. So debt funds based on the more stable companies can do well while eq funds go nowhere.

    But to be honest your pin might be as good as mine or anyone else's. Above all enjoy it :beer:
    I believe past performance is a good guide to future performance :beer:
  • cheers. i have no idea when it comes to investing. i just thought world economy weak = not a lot of call for commodities, so might as well pick up units now, and wait for the recovery.
  • Linton
    Linton Posts: 17,741 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Far East is a good area to consider IMHO. Rather less volatile/risky than China.
  • a large part of any growth in demand from commodities is likely to come from china, so in a way you are already betting on china's economy, and should perhaps look elsewhere if diversification is what you are after.
  • Totton
    Totton Posts: 981 Forumite
    If you want a counter balance then it may be worth considering Troy Trojan (soft-closed but available from fund supermarkets) or one of the Vanguard Life Strategy fund. The problem with the Vanguard funds being the need to buy from a fund supermarket and pay their additional platform fee. If you can fins one that does't charge such a fee then I'd give Vanguard a serious thought.

    Either of those should provide a counter balance to the JPM fund.

    HTH,
    Mickey
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