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Switching FTSE 250 tracker to UK Mid-Cap Growth Fund?

El_Selb
El_Selb Posts: 111 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Savings & investments
What are people's thoughts on this?

I like the look of the Royal London MC growth fund, although buying into it seems to be overlapping to some extent my investment in the 250 tracker.

Is it a sound idea to switch?

Part of my motivation is probably in error - ie the FTSE 250 hasnt been performing well in the last 6 months and i guess that's short-termism. But, I do like the look of this new fund and I don't want to duplicate the area in which I'm invested.

Comments

  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 6 September 2014 at 1:33PM
    I wouldn't personally.

    Really depends if the manager can beat the 250 which seems unlikely long term.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Totton
    Totton Posts: 981 Forumite
    jimjames wrote: »
    I wouldn't personally.

    Really depends if the manager can't beat the 250 which seems unlikely long term.

    Have you got that the right way around ?
  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Totton wrote: »
    Have you got that the right way around ?

    No! Now corrected
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Borrowedtune
    Borrowedtune Posts: 86 Forumite
    F&C Mid Cap is another possibility.


    What about small caps ? Marlborough Micro is my favourite, though I worry that it will have to soft close at some point.
  • El_Selb
    El_Selb Posts: 111 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Borrowedtune wrote: »
    Marlborough Micro is my favourite, though I worry that it will have to soft close at some point.

    Why would that be?
  • Linton
    Linton Posts: 18,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    El_Selb wrote: »
    Why would that be?

    Small Caps by definition only have a relatively small value of shares available. Marlborough Micro Cap invests in very small companies. If the fund gets too big, the quantities of shares it must buy distort the market with the prices of shares increasing just because the fund has decided to buy some and/or there may simply be not enough shares of the right quality available.
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