Using the Vanguard Lifestrategy fund exclusively?

blizeH

Hi,

I've been playing around with various shares (GOOG, SCTY, TSLA, DIS etc) and funds (Cazenove UK Smaller, Marlbrough Micro and Multi Cap etc) and whilst I really enjoy it, and have done very well so far, I can’t help but feel I’ve basically been lucky and need to try to be a lot more careful in future.

I’m thinking of in future just ignoring any individual stock/fund purchases, and going exclusively for the Vanguard Lifestrategy funds... it’s my understanding that these offer probably the best way to ensure I get a diversified portfolio that requires zero work or management, and I can pretty much invest and forget.

Any opinions and recommendations would be very welcome, thanks!

atush

Or Blackrock.

but even they dont have access to all equities, markets and other assets, so you might think about more than 1? There are ETFs too in the Vanguard range.

You seem to be going from one end of the spectrum to the other (ie high risk singel shares to a lifestyle fund). Maybe do some research/reading as well, to settle your mind on your choices, and your desired outcome.

blizeH

Thank you atush, I have looked at the other funds/ETFs offered by Vanguard and a lot of them are tempting, but ideally I want something that I can really just invest in and (within reason) forget about. I'm checking my stocks daily, and my funds more often than I'd like too - so I want to move to something simpler partly to save time, but mostly because I really have no clue what I'm doing (as much as I like to think I do since I've got lucky, the reality is I don't put the hours in and do all of the technical analysis etc that's required)

You're right that it is very much at the other end of the spectrum though, but I think that'd probably be good for me, and good for my wallet in the long run! Will take a look at the Blackrock funds now I understand these are priced differently and on some platforms are cheaper than others (ie HL)

le_loup

...... don't forget the enjoyment factor.
Whilst running your own investments can be a chore, it surely gave you a lot of fun.
I too have changed my strategy because of age but I sure will miss the fiddling, even if that was the wrong thing to do.

blizeH

That's part of the problem, I know it's sad but at times I enjoy it a little too much! Unfortunately the reality is to make any sort of money in this in the long run you need to really put in the hours, which realistically I'm not doing right now.

ExMugPunter

If you really enjoy the challenge of identifying and buying shares, why not do both?
You could put, say 60% of your cash into a Vanguard lifestrategy 60% in order to get a core (some would say sensible) platform.

Then carry on enjoying the rest of your investing safe in the knowledge even if things go wrong, you have the majority of your investment elsewhere.

Linton

You could look at the multi manager/multi asset funds which may provide a more diversified portfolio than the Vanguard Lifestyle Index funds. Bear in mind that large companies all over the world will be fairly highly correlated.

During the past year (Vanguard lifestyle funds havent been around long enough to get in the 3 year statistics) the Vanguard 80% fund is down in the 3rd quartile of the 40%-85% mixed fund sector.

blizeH

Thanks Mug, that was my plan initially but then I realised that the 40% for 'fun' is going to cost me a hell of a lot of time and money in the long run

And thanks for the multi manager suggestion, I've only seen them on HL before and whilst it's an interesting idea, it seems like the fees really rack up that way (since you're paying an extra fee on top)

Linton

blizeH wrote: »

Thanks Mug, that was my plan initially but then I realised that the 40% for 'fun' is going to cost me a hell of a lot of time and money in the long run

And thanks for the multi manager suggestion, I've only seen them on HL before and whilst it's an interesting idea, it seems like the fees really rack up that way (since you're paying an extra fee on top)

What extra fees? Is this an HL thing? Fund returns always include the fund manager's charges, its not an extra bill you get. Surely the important thing is the overall return. The Vanguard 40, 60, and 80 funds as a whole do not look too good compared with others in the 40-80% sector.

ColdIron

Why not just replicate their fund choices directly?

atush

Other options are good long running general investment trusts. Some run globally, others more of a UK focus. There are even income ones.

But some of the oldies have a very long record of increasing dividends year on year. Some more than 40 years. When i started investing in stocks with the CB (I know I know but it is their university money lol) we also started off investing with F&C, invesco perpetual, witan etc. And they were pay and forget. Until the statements come, and most years they do well, sometimes spectacularly. And I never tend to look at them in between.

Could this be of use for part of your pot?