Vanguard Life Strategy

Blackdog

stardust09 wrote: »

I have recently started a S&S ISA with a VLS 60% Acc. Alongside that, I've got a Somerset Emerging Markets Dividend Growth A Fund Acc.

I'm 35, single and dabbling in S&S ISAs for the first time. I've only got £500 invested in each fund so far and am planning to drip feed small amounts in regularly, like £50-150 monthly. I don't have much spare cash

I wasn't sure whether to keep building up these two funds or whether there are any others which go well alongside the VLS. It's a case of either lots of eggs in two baskets or fewer eggs in many. I don't have heaps of spare cash each month but am looking to invest for retirement, so 25-30 years. I don't have any other pension apart from a small NHS one but now I'm self-employed and earning less so am trying to invest wisely!

Any thoughts would be appreciated.

Thanks.

You don't say which platform you have these investments on. It is great that you have taken the plunge and started investing, drip feeding is the best way to go as you will have read earlier in the thread. The only downside is depending on the platform you are using the charges could be expensive for the small amount you have invested. For example if you invested through Hargreaves Lansdown you will be paying £2 a month for the VLS which is nearly 5% of your £500 investment. However don't let that put you off as the more you invest the less effect any monthly fee will have.
I also have the Somerset fund in my portfolio but only as a small percentage. If I were you I would be weighting my portfolio towards the VLS and look towards introducing another fund in future as the value of your portfolio builds up.
Good luck with your investing and well done for taking the plunge!

stardust09

Blackdog wrote: »

You don't say which platform you have these investments on. It is great that you have taken the plunge and started investing, drip feeding is the best way to go as you will have read earlier in the thread. The only downside is depending on the platform you are using the charges could be expensive for the small amount you have invested. For example if you invested through Hargreaves Lansdown you will be paying £2 a month for the VLS which is nearly 5% of your £500 investment. However don't let that put you off as the more you invest the less effect any monthly fee will have.
I also have the Somerset fund in my portfolio but only as a small percentage. If I were you I would be weighting my portfolio towards the VLS and look towards introducing another fund in future as the value of your portfolio builds up.
Good luck with your investing and well done for taking the plunge!

Thanks for the guidance. I'm with Charles Stanley Direct (after taking advice from other MSE peeps earlier this month). I understand that until I hit the £10,000 mark, this platform is probably the cheapest for me.

Sanoffo

Does anyone know the average overall yearly yields for these funds? Specifically the 80/20 accumulation in terms of what % is likely to be re-invested?

I'm still trying to get my head round what the 'dividend yield factor' actually means in real terms.

bowlhead99

The funds have not quite existed for two years yet so there is not much info available in terms of averages.

According to the latest factsheets on the Vanguard website (April 30), the historic yield to April was 1.4% for the 100 version and 1.5% for the 80 version.

If you held the income units you'd have got paid in cash, while if you had the accumulation version it gets rolled into the price of the fund (presumably this is what you mean by reinvested).

This is a historic yield rather than a projection of what you'll get going forwards.

Sanoffo

bowlhead99 wrote: »

The funds have not quite existed for two years yet so there is not much info available in terms of averages.

According to the latest factsheets on the Vanguard website (April 30), the historic yield to April was 1.4% for the 100 version and 1.5% for the 80 version.

If you held the income units you'd have got paid in cash, while if you had the accumulation version it gets rolled into the price of the fund (presumably this is what you mean by reinvested).

This is a historic yield rather than a projection of what you'll get going forwards.

So what other performance indicators should I be looking at year on year? (I know I should probably just forget about it, but interested to learn as I go)

Roustabout

We have purchased into the Edinburgh Investment Trust as part of the income and growth side of our portfolio. It appears that it is trading close to or even underneath its NAV to Share price so it look like we may have got it at little premium.

Sanoffo just try to relax about your fund. I know it is easier said than done but you can drive yourself crazy. Just think of your fund as an asset that will appreciate in time. But will fluctuate by its nature. Welcome to investing.

Edit - and if it helps you feel better we were already running at a loss on it due to purchase fees and stamps

elantan

my vanguard is running at a loss just now .. but it got me a bit excited as i finally managed to save another £250 to add to it, so when it eventually rises i will have made just that wee bit extra on the amount i just bought

its keeping in mind this is a long term strategy thats important i reckon

ozzage

elantan wrote: »

my vanguard is running at a loss just now .. but it got me a bit excited as i finally managed to save another £250 to add to it, so when it eventually rises i will have made just that wee bit extra on the amount i just bought

Now THAT is the right attitude for a long-term investor! Gleefully grabbing units at a lower price

JohnRo

That's the conundrum, lump sum disappointment when prices drop, regular contribution disappointment when they don't (with the certain knowledge they will at some point).

Better to just stick to a plan and try to forget about it. That said if you're trying reduce the average unit cost long term with a well timed top up, it's obviously worth checking regularly for the opportunity.

Carpi09

It's the first time I am seeing negative now but that is only because I have decided to add added risk by having an Asian fund. I bought just before the fall, I am not worried at all. Think that fund is at -9% now