Artemis Income Retail Inc

Party_Animal

joerugby wrote: »

Here is an interesting article from HL suggesting that you might use three funds to get better diversification

http://www.hl.co.uk/news/articles/dont-put-all-your-equity-income-eggs-in-one-basket

Thanks, what do people think about this option? Is this giving me better cover?

A_Flock_Of_Sheep

Party_Animal wrote: »

Thanks, what do people think about this option? Is this giving me better cover?

One thing I have learned is never believe anything HL says.

Party_Animal

dunstonh wrote: »

It is single sector in that it is UK equity. No europe, US, Japan, Asia, Emerging markets, fixed interest securities, property, global bonds etc. it is single asset. UK shares.

As a single investment fund in isolation, we would have that as risk 9 out of 10 on our scale (1 being cash and 10 being the highest risk unit linked options). If you are a new investor (i.e. no other investments) then going straight in at risk 9 would be something we would put you off. Now, that doesnt mean you shouldnt do it. When you DIY you decide for yourself what to do and you may feel that whilst it is generally considered poor investing to go single sector/single asset, that is what you want to do. You may have a hundred thousand in cash savings and this may only be £5000 of that and you accept the risk. However, if that was the case, you would typically look to be across the risk scale and not have one amount in risk 1 and another amount in risk 9.

I've decided to go with this, but, following Dunstonh's advice, which I'm grateful for, I'd like to take out at least another one to run alongside it, something that does cover global markets. I want to gradually build up a portfoilo. Can anyone advise which funds to consider?
Thanks

grizzly1911

Party_Animal wrote: »

I've decided to go with this, but, following Dunstonh's advice, which I'm grateful for, I'd like to take out at least another one to run alongside it, something that does cover global markets. I want to gradually build up a portfoilo. Can anyone advise which funds to consider?
Thanks

A couple that pop up regularly Newton Global High Income or Invesco Perpetual Global Equity Income.

Party_Animal

grizzly1911 wrote: »

A couple that pop up regularly Newton Global High Income or Invesco Perpetual Global Equity Income.

Thanks, the Newton one is on my list of ones to check. It was recommended elsewhere.
I appreciate the help.

A_Flock_Of_Sheep

All you really need to get is a few cheap trackers.

Party_Animal

A_Flock_Of_Sheep wrote: »

All you really need to get is a few cheap trackers.

Thanks I've gone with the Newton one, but I'd still be interested in cheap trackers. Can you please expand as I'm new to this. I've had individual shares before and, for a while, was part of share club, which did very well, but trackers and funds are new to me.
Thanks again

A_Flock_Of_Sheep

Party_Animal wrote: »

Thanks I've gone with the Newton one, but I'd still be interested in cheap trackers. Can you please expand as I'm new to this. I've had individual shares before and, for a while, was part of share club, which did very well, but trackers and funds are new to me.
Thanks again

Basically it is a passive way of investing by spreading your risk across the entire index that you track. You can get OEICs for this but I use ETFs that trade live on LSE so you know the price at any point in a day. Basically if the Index you are tracking goes up or down you know how you are doing.

You can get ETF (Exchange Traded Funds) that track most if not all indexes and commodities right down to sugar and cattle.

A big advantage is cost. The ETF I use to track the S&P 500 for example has an annual cost of 0.09% - compared with most OEICs that charge 1.5%.

A lot of fund managers will tell you how great their fund has performed and how it beat the index. The probably got lucky and the clue is in the word "performed".

Build yourself a word with E D and say it happened.

Show me a fund manager that will say "buy my fund because it WILL beat the index over the next five years" and I will believe in fund managers.

In a nutshell you can split a portfolio using cheap trackers into:

Equities by tracking the chosen indexes locally or globally, so FTSE, S&P500, Emerging Markets, Nekkei, Topix and so on.
Gilts
Bonds - local and worldwide
Commodities (if you wish) such as Gold, sugar, cattle.
Real Estate (if you wish) I use a couple of REIT's but they are not trackers though.

Party_Animal

AFOS, many thanks for the info. I' retired early this year so I've plenty of time to look around. I wanted to have a dabble but I haven't much idea. I'm learning.
Thanks again

latecomer

If you are interested in passive investing check out http://monevator.com as a starting point. Also if you haven't already have a look at the Vanguard Life Strategy thread here:

https://forums.moneysavingexpert.com/discussion/4392271