Funds Return/Performance

remorseless

Thanks to those of you who helped me yesterday understanding the concept of time with funds... Another day another question!

What's the return or performance you're expecting from your portfolio? I understand there's no exact formula and not every year is alike and so on, so maybe just a ball park value.

What's the performance you're aiming for?

Thank you

N1AK

remorseless wrote: »

What's the return or performance you're expecting from your portfolio? I understand there's no exact formula and not every year is alike and so on, so maybe just a ball park value.

What's the performance you're aiming for?

I'm estimating that over the long term my passive portfolio will average ~7% including dividends and after fees.

Radiantsoul

4% real return.

InvestInPoker

I am expecting around 5% above inflation on average per year when all is said and done. I have a 30 year timescale but even with that I think my final average per year result could swing a couple of % either way - there is that much volatility in the markets.

TheTracker

4-6% above inflation

Radiantsoul

No-one has gone for over 25% yet!

TheTracker

Radiantsoul wrote: »

No-one has gone for over 25% yet!

Ryan F hasn't voted yet.

remorseless

over 25% would definitely be hard to achieve... but you never know!

bowlhead99

I've certainly had 25% on individual shareholdings in the past - and averaging that rate of return compounded for 5 years straight is 'only' tripling your money and that can sometimes happen on individual shares in much less time, I've done that on several stocks. I've also lost 95%+ on others. But that's why people invest in funds rather than individual shares, and then invest in several funds to make a portfolio - because you don't want it to happen in reverse, you only want to generally do 'well enough' on average and achieve it for a good long long time. So diversification across companies and strategies is important.

You can get 25% on an asset, sustained for several years, but to expect it on an asset or get it on a whole portfolio, would be somewhat ambitious! I've plumped for "5-10%" myself, but whether that includes or excludes inflation, I'll come back and tell you in two decades!

LXdaddy

I vote between 5and 10% and that would be after inflation.

I certainly don't expect to see above 5% in the near/mid future so effectivly that is the variance between top and bottom - if inflation gets up to 5% retrn above inflation might be around 5%. if inflation is lower then return could be higher.

I'm late starting on my S&S ISA but certainly don't anticipate taking money out in the first 10 to 15 years

masonic

There's no option that covers the space between 10-15% (not that I'd have chosen that one).