Lifestrategy 80 Acc - can I just leave it to do its thing?

Turtle

Hello all

I've just registered with Charles Stanley Direct with the intention of investing monthly into the LS 80 Acc fund - £500 a month.

Points to note:
1) I'm fully aware the value of an investment can go down as well as up
2) I know we're likely to be better off by investing this money rather than sitting on the cash
3) We're 39 and 42 yrs old and planning (hoping) to be able to leave our current jobs at 55, and move to something less stressful/part time/min wage, so we've a good number of years before we might need the money (let's say 15 yrs)

So, the more I read on here about people rebalancing their investments etc the more it puts me off taking the plunge and making the initial investment. What I want to do is just pay in the monthly amount and leave it really.

is this a suitable fund for me based on the above or will it require intervention?

Any help much appreciated and feel free to ask any other questions if I haven't provided enough info.

Thanks in advance

InvestInPoker

To me it seems fine and VLS funds are designed for situations like you are in, where you just want to put in and leave it to do its job over a given time period. Good luck!

ExMugPunter

They are designed to be a one stop shop. Therefore you don't have to do anything - The rebalancing is done automatically.

Essentially, they allow us to have a diversified portfolio without having all the hassle. Thats why it costs slightly more to buy the LifeStrategy funds rather than each of its components individually.

ColdIron

This is what the VLS is built for, low maintenance buy and hold

Linton

You can leave a fund like one of the Vanguard LS's to do its own thing. Another similar option may be a multi-asset fund such as L&Gs risk profile range. In both cases the rebalancing is done by the fund manager.

Once your total pot reaches a moderate size (say £20K) you may wish to buy additional funds to increase diversification or to provide small amounts of extra spice to your portfolio. At that point rebalancing becomes a factor.

Turtle

Thanks all, I will set up the payment as it sounds like a good choice for us.

enthusiasticsaver

Yes it sounds as if the choice you have made is sensible. I am putting £1000 per month into the Vanguard LS 60 but then I am older than you so not willing to go up as far as 80% equities. Like you though I just want to invest and leave it alone for 10 to 15 years.

trickydicky14

Once your total pot reaches a moderate size (say £20K) you may wish to buy additional funds to increase diversification or to provide small amounts of extra spice to your portfolio. At that point rebalancing becomes a factor.[/QUOTE]




I have a VLS 60 with CSD and have about 25K invested, what additional funds do you feel should be looked at to increase diversification and why do you advise this at this magic number of 20k.
Just keen to learn and understand.
Thanks.

vickssinex

I have a VLS 60 with CSD and have about 25K invested, what additional funds do you feel should be looked at to increase diversification and why do you advise this at this magic number of 20k.
Just keen to learn and understand.
Thanks.

There is no magic number or hard and fast rule. What you invest in, and when, is entirely up to you. VLS is fairly well diversified anyway and if it ticks all the boxes for you then why not stick with it.

trickydicky14

vickssinex wrote: »

There is no magic number or hard and fast rule. What you invest in, and when, is entirely up to you. VLS is fairly well diversified anyway and if it ticks all the boxes for you then why not stick with it.

Hi VICKSSINEX


I take on board what you are saying in fact I agree with you 'given my limited knowledge of investing', I just asked the question as I was interested in what Linton said and the reasons for it. I know 20k is not a magic number but am still interested as to why it was quoted.
Thanks.

Herbalus

trickydicky14 wrote: »

I know 20k is not a magic number but am still interested as to why it was quoted.

I don't think there's any particular reason for 20k - it's more that this is a large enough amount that any extra 'spice' you want to add to your portfolio is meaningful.

For example, commercial property funds are often touted as an additional diversifier at about 10% of your portfolio, but if you only have £5000 invested then that's £500 in property, which isn't really big enough to make a substantive difference.