Bio-Tech funds

musashi10

Hi, I have been researching the best funds over the past 3 years, and one category that seems to have done really well that interests me is Bio-technology.

Looking at the trends, during the height of the financial crisis returns weren't great as can be expected, but since then, inparticularly the past 3 years, growth seems to be extremely high, especially those with major US coverage.

I wanted to ask what were the main drivers of this growth?

Are there any reasons as to why this trend may not continue for the next few years?

Thanks

talexuser

musashi10 wrote: »

Are there any reasons as to why this trend may not continue for the next few years?

Yes, the shares may fall in value.

planteria

i have the Axa Framlington Biotech fund in my SIPP, which has been my best performer

Totton

I wanted to ask what were the main drivers of this growth?
Are there any reasons as to why this trend may not continue for the next few years?

My non technical view is that main drivers are life expectancy increase and access to drugs in more areas of the world. People are living longer, are wealthier and spending on medicines will keep growing. My favoured play is Biotech Growth Trust although I mix it with Worldwide Healthcare IT as I think healthcare is growth area.

planteria

so do i...
i am re-organising porfolio, i think, with a move from HL. if so i might allocate part of my ISA fund to Biotech, probably the Axa fund.
also have shares in GlaxoSmithKline.

musashi10

Thanks.

But the trend upwards seems to be the past couple of years only. Before that for many years the sector seemed to underperform. I think longer lifeexpectency is not something that has happenned in the past couple of years.

I guess the question is, do you jump on the band wagon and try and jump poff before it falls? Or try and find the next growth sector before it has risen too much?

Just wondering f this is a long term thing, or whether something dramatic has specifically occured past two years.

Linton

musashi10 wrote: »

Thanks.

But the trend upwards seems to be the past couple of years only. Before that for many years the sector seemed to underperform. I think longer lifeexpectency is not something that has happenned in the past couple of years.

I guess the question is, do you jump on the band wagon and try and jump poff before it falls? Or try and find the next growth sector before it has risen too much?

Just wondering f this is a long term thing, or whether something dramatic has specifically occured past two years.

Why or? Why not both? Diversity in this type of investing is essential. If you dont have the money to do both I think you should stick to general well diversified funds. But dont think about jumping off band wagons, think more in terms of the long term.

I think biotech is increasing rapidly now because the scientific advances of the past 20 years are beginning to have significant commercial impact.

musashi10

Thanks.

May I just ask you a general question please?

How often do you review your funds?

And in general, when you invest in a fund, what is the average expectancy that you seek to invest for?

Are there some cases where you look at the short haul? Or is that better left for individual equity trading?

Linton

musashi10 wrote: »

Thanks.

May I just ask you a general question please?

How often do you review your funds?

And in general, when you invest in a fund, what is the average expectancy that you seek to invest for?

Are there some cases where you look at the short haul? Or is that better left for individual equity trading?

My approach to investing is .....

- Look seriously at the sector allocation of the overall portfolio about once a year and adjust fund holdings if necessary. I would be unlikely to worry about individual funds unless there was some evidence that the performance was way below that of other similar funds.

- When buying any investment the intention is to never sell until one needs the cash.

- Never buy anything for the short term. Unless you have proven abilities to predict future short term movements it's too much effort for too little gain.

pip895

I trade funds on a relatively short term basis. www.saltydoginvestor.com explains the basic technique I use although I don't use his exact system. Free trading and lack of spread make it relatively easy. AXA Framlington Biotech has an initial spread which makes it a higher risk proposition for short term investing. It dose tend to be frowned upon by many, but I find it gives me a good return at low volatility.

planteria

pip895 wrote: »

I trade funds on a relatively short term basis. www.saltydoginvestor.com explains the basic technique I use although I don't use his exact system. Free trading and lack of spread make it relatively easy. AXA Framlington Biotech has an initial spread which makes it a higher risk proposition for short term investing. It dose tend to be frowned upon by many, but I find it gives me a good return at low volatility.

who frowns upon it, and why?