SE trackers

musashi10

dunstonh wrote: »

So, even more reason for you to use a multi-asset fund. If you are going to start out, then at least start out correctly. Single sector investing is considered bad investing.

I'm not an expert in investing but I don't agree with you.

Lets just say I want to start investing in equity.

My choices are

Invest in the SE myself. This scenerio I am betting that I know more than the person selling them who in many cases works on the SE 60 hours a week. This to me at this stage I don'tthink is a good scenerio.

I could invest in a managed fund where I pay someone fees and am betting that YOY they will bea the market. Well at this stage I don' know enough about who are the best fund managers YOY and my investments are relatively low so racking up high fees I don't want to do.

Mixed investment tracker as you suggest. so I gather they split the investment my georaphical region.

Well I don' know enough about the other regions to bet on them despite high yields in recet years in many emerging markets, many of these countries are still highly volatile and I haven't seen any with a long term permanenet track record.

Europe_ well I don't know much about Europe either, i'm sure it's fine but for the next few years you're on a hiding to nothing in my mind with the Eurozone in complete turmoil.

Invest single market tracker US or UK. Logic is kow a little about it and it has a proven track record of performance for a long sustained period of time i.e 100 years or so. Not going to make you millions but it seems as history dictates that it is a steady eddy investment.

And I know he is not a qualified financial expert but Brian Tracy recommends investing in single market tracker and he is a successful guy. So to say it's definitely a bad investment in my view is not corect.

Be_Happy

Not sure how small your 'smallish amount' is, but I've just opened an M & G index tracker for grandson, paying in £30 a month. Opened directly with M & G, so very low charges.

Not expecting great things, but relative safety over 18 years at better rate than banks.

musashi10

What is the annual yield %?

Yes I want to do something similar @ £50/month

jimjames

Be_Happy wrote: »

Not sure how small your 'smallish amount' is, but I've just opened an M & G index tracker for grandson, paying in £30 a month. Opened directly with M & G, so very low charges.

Not expecting great things, but relative safety over 18 years at better rate than banks.

I'm assuming the M&G tracker is invested in the UK FTSE 100 or All Share. Although the FTSE companies get 70% of their earnings from outside the UK it is still a single market but if your version of safety means you are happy to suffer 50% loss at times then that is fine.

When I started out investing there were very few choices other than FTSE trackers and in hindsight it would have been better to have had some more variety than just being reliant on the fortunes of one market.

I can see why the OP wants to start with something they know but it would be worth looking at other options once you have got started and found out more about investing.

JohnnyJet

musashi10 wrote: »

What is the annual yield %?

Yes I want to do something similar @ £50/month

These are the fund details -
http://www.mandg.co.uk/Consumer/Images/Index%20Tracker_tcm1481-26656.pdf

dunstonh

And I know he is not a qualified financial expert but Brian Tracy recommends investing in single market tracker and he is a successful guy. So to say it's definitely a bad investment in my view is not corect.

I am a qualified financial expert. So, this person, whoever he is, and you (who admits to having no knowledge on these things, disagrees with me. Who do you think is right?

Invest in the SE myself. This scenerio I am betting that I know more than the person selling them who in many cases works on the SE 60 hours a week. This to me at this stage I don'tthink is a good scenerio.

I agree with you there.

I could invest in a managed fund where I pay someone fees and am betting that YOY they will bea the market. Well at this stage I don' know enough about who are the best fund managers YOY and my investments are relatively low so racking up high fees I don't want to do.

Which is a fair enough opinion.

Mixed investment tracker as you suggest. so I gather they split the investment my georaphical region.

Well I don' know enough about the other regions to bet on them despite high yields in recet years in many emerging markets, many of these countries are still highly volatile and I haven't seen any with a long term permanenet track record.

In reality, you dont know enough about this region or the US. Your current approach of either selecting the US market or the UK market is very selective. You are in effect gambling on that one sector being the best performer year in, year out going forward. Going back to 1999, the US hasnt been the best performing sector once since then. Indeed, the best it has managed was US large cap coming 4th in two years (1999 and 2011). UK does a bit better on the small cap front but then so does Europe.

Whilst the global markets follow general trends, there is still a lot of difference across the regions. Regions are still subject to localised events and issues.

A global tracker or multi-asset tracker (such as the Vanguard Lifestrategy funds) gives you the diverse spread across the sectors without you requiring to know any more than you already do.

Europe_ well I don't know much about Europe either, i'm sure it's fine but for the next few years you're on a hiding to nothing in my mind with the Eurozone in complete turmoil.

Second best performing sector in 2012. It obviously suffered in 2010 and 2011 but UK small cap was worse in 2011.

No equity investment is a steady eddie. However, a diversified global investment spread with multi-asset is more likely to be a steadier eddie than a UK tracker or US tracker.

bigadaj

Dunstonh, bold claim to be an expert, maybe you need to inform your PI insurers of this. Unless specifically providing expert witness service or similar it's never wise to claim this, as I have to inform some of our staff when reviewing client contracts.

The OP needs to appreciate the risks involved in investments but is investing into a UK or us fund such a bad thing?

Won't be the best performer but will form a base and over the next few years balance can be achieved by investing in other sectors and geographic areas to achieve diversification, and whilst its anathema a to say so, try and go for a bit of market timing to enhance returns.

If IFAs were that good at investment they would all be following their own advice and making millions on the market, not saying theOP doesn't need guidance , but some of the comments come across as talking up your own book/ business.

bugbyte_2

I'm in the same boat as the OP. I started off with monthly to HSBC FTSE 250, HSBC America, and HSBC Pacific because in by humble view they are established markets with established companies or in the case of FTSE 250 up and coming companies that have been around for years and I have heard of them. As I gained confidence to diversify, I added a corporate bond fund with a low standard deviation. For risk, I then added a UK mid cap fund with a very good 10 yr track record. This portfolio will never set the world on fire but I am comfortable with it. As it gets bigger, I will look to add FTSE 100, Europe, possibly Gilts (but cant see the point at the moment) then emerging markets.

dunstonh

Dunstonh, bold claim to be an expert

Not when you are qualified to be.

maybe you need to inform your PI insurers of this.

They know.

The OP needs to appreciate the risks involved in investments but is investing into a UK or us fund such a bad thing?

100% UK equity yes. As part of a balanced portfolio within the risk tolerance and timescale, no.

If IFAs were that good at investment they would all be following their own advice and making millions on the market, not saying theOP doesn't need guidance , but some of the comments come across as talking up your own book/ business.

How does guidence on a website which doesnt pay anyone (here) any money achieve that?

psychic_teabag

bigadaj wrote: »

If IFAs were that good at investment they would all be following their own advice and making millions on the market, not saying theOP doesn't need guidance , but some of the comments come across as talking up your own book/ business.

My understanding is that IFAs are not about seeing into the future and predicting the markets. They're about selling you a balanced portfolio matched to your risk profile and timescales.