First State Global Resources - Top up?

Newbie2saving

Hi all,

Even after having my S&S for a few years now, I still class myself as a total newbie! I have decided to 'cream' some of the profits from Standard Life UK Smaller Cos as it hit >40%. One of the funds that hasn't done so well is First State Global Resources and I understand whilst interest rates are low, the true value of commodities will be suppressed. I am down ~14% on this and wondering if you savvy people would see this as an opportunity to top up, or is this not a great fund full stop? I see this as a long term investment 15-20yrs+

NB. Also have First State Global Emerging Mkt Leaders which is down ~7% and Jupiter India down 22%. I am not doing too well am I?!?!?

NB. Not talking about much money here, this is my 'learning / risk' pot.

Any thoughts appreciated. TIA.

gadgetmind

The amount you are up or down is just a function of when you bought, which shouldn't really be guiding your hand regards how to adjust your portfolio moving forwards.

I wish online platforms wouldn't even show this figure as it's pretty much irrelevant.

rpc

First State Global Resources > Commodities > Volatile
First State Global Emerging Mkt Leaders > Emerging Markets > Volatile
Jupiter India > India > Volatile

You name three volatile funds and can hardly complain when they behave in a volatile manner. Volatility/risk goes both ways!

"Markets may go down as well as up..."
"Past performance is not a guide to future returns"

If the funds meet your requirements, keep them. If they don't, get rid. If you like the sector but not the fund, find another fund or index in the same sector that appeals more.

Old_Slaphead

I wait until the sector takes a bashing for a few days and then top up fund. Seems to have worked out ok so far - been in FS Global Resources for around a year and I'm currently +1%. Not great admittedly but not bad considering where commodity share prices are just now.

Newbie2saving

Thank you all for replying. I am not complaining, I know they are volatile funds, which have high risks. Still working out how to invest / plan and appreciate the knowledge / experience of others. The money that is within these funds is minimal, like I mentioned, my risk pot. However, when I chose a couple of the funds I was very new to investing and was stupidly taken in by HL marketing! It is now a case of working out how to manage the portfolio and see through my beliefs, but knowing when to change a fund / sector.

I'm not happy with Jupiter India, the others I am okay with being down against initial investment, but struggling to grasp when to get out of a fund or to enable it to try and make up the loss, or is that just daft and loosing out in the long run?!?!?

ChesterDog

I wouldn't say it was daft, but -as has been stated - your view on whether to buy/hold/sell should not be influenced by your current loss/profit on that item. All that matters is whether it suits your portfolio and meets your requirements for risk/return and whether you think it will rise or fall in value over a timescale relevant to your requirements.

FWIW, if those funds represent your entire portfolio, I would feel uncomfortable. I would suggest setting up a more stable core of boring stuff and keep these volatile things for the periphery.

Newbie2saving

No they don't, I have a more cautiously balanced pot via an IFA.

This is a pot made of others including majoring in a Vanguard LS 80%, SL Smaller cos UK, Artemis Strategic Assets, Blackrock European Dynamic, Fidelity China SS, M&G Global Div, Threadneedle American Smaller cos, plus the other funds mentioned in previous posts. This was my attempt at merging some previous years ISA allowances from cash to S&S and trying to learn as I go along.

Thanks again, everything meets my current needs, other than Jupiter India so I need to decide what to do with that fund in particular.

Doshwaster

I have Jupiter India and that has taken a battering this year but I still have faith in it as a long term investment and I'm considering adding to my holding.