Making money from funds

dunstonh

Historically, as long as its been running its averaged around 8% interest i believe which sounds pretty good to me if that trend continues..

It hasnt earned interest. It has also been around less than an economic cycle and only a good period. So, has no averaged data that includes a crash

brasso

u0362565 wrote: »

I have at least picked a version of life strategy that isn't maxed out with stocks which means its potentially less risk than other variants but i agree it isn't the safest option out there.

If you have a long term horizon (you mentioned 30 years) then IMO it would be wiser to go for the 100% equity option. Unless you're excessively risk-averse (in which case, investing may not be for you), there's no great need to be too cautious this far out.

But good luck, whatever your decision. it's striking how a good couple of months in the markets make people very confident and optimistic while a bit of volatility has them getting over-anxious. You've said yourself that this is a long-term activity, so try not to be affected by short-term dips and use these as welcome opportunities to top up.

u0362565

Yes all good points. Its a difficult decision to know how risky to be so i urged a little on the side of caution although, some have said they wouldn't touch stocks at all! If over 30 years assuming i can save the same amount each year and i live that long, both of which not guaranteed, i'd be happy with an average yearly return of 4-5% whether thats optimistic or realistic i don't know.

BLB53

I invested in Vanguard lifestrategy, but as i say i only put in a small amount and now i'm wondering whether to add more. You can decide what percentage you split between stocks and bonds.

This is a good choice - if you are intending to invest for the longer term, then VLS80 or VLS100 would possibly be the better selection.

Not good to drip feed small sums and pay dealing fees - Charles Stanley Direct for example make no charges for purchases so think about a transfer?

Finally, you will be disappointed and give up if you constantly monitor your investments. You may be interested in a recent article on diy investor in this context - http://www.diyinvestoruk.blogspot.co.uk/2015/07/what-does-it-takes-to-be-successful.html

Good luck!

Pincher

Just to soak up my pension tax rebate, I put in around £7000, including the tax refunded into an AVC (Additional Voluntary Contribution), in 2000. It's worth £19k in 2015. The pension company runs the funds, but at least I could choose the sectors. The FTSE100 fund sucked, whereas the Far East fund and unit trusts fund really shined.

If I had chosen FTSE100 for the whole £7000,, it would be nowhere near £19k now. Fortunately, out of pure hunch, I over allocated on the Far East and unit trust sectors. It IS gambling, so put more on what you feel good about. Rational, sensible choices just gets you average returns, less charges.

grey_gym_sock

Pincher wrote: »

If I had chosen FTSE100 for the whole £7000,, it would be nowhere near £19k now. Fortunately, out of pure hunch, I over allocated on the Far East and unit trust sectors.

all in FTSE 100, or all in the far east, would be very poor investing - not enough diversification. a bit in every region is more sensible.

now, i'm not not objecting to weighting it a bit 1 way or another. so long as it's not too extreme.

It IS gambling, so put more on what you feel good about.

more often than not, that will be bad advice. because what most ppl feel good about is usually what's being talked up as a great investment, which is whatever's done well recently. and nothing keeps on having the best returns forever. it always rotates, and something else does well. by picking the recent winners, you have a high chance of buying into them at exactly the wrong time, when they're about to hit a bad patch.

Rational, sensible choices just gets you average returns, less charges.

you say that as though it's a bad thing.

u0362565

Sorry me again, just wondering how people add money to their funds, on a monthly basis, at random, once a year? Because i'm with a platform that charges per transaction it makes sense for me to only make one transfer in once a year perhaps. I guess i should try and monitor the fund and wait until the price per unit drops and get the best price if i'm doing it annually? I could transfer the ISA to another provider but they'll probably charge an admin fee so you lose in a different way.
Thanks

ViolaLass

u0362565 wrote: »

I could transfer the ISA to another provider but they'll probably charge an admin fee so you lose in a different way.
Thanks

Worth at least finding out, surely? My provider doesn't charge per transaction so I add monthly. I don't try to time it.

Eco_Miser

u0362565 wrote: »

Sorry me again, just wondering how people add money to their funds, on a monthly basis, at random, once a year?

All three are common. Personally, I usually buy just once a year, and chose a platform that only charges for transactions, for that reason.

u0362565 wrote: »

Because i'm with a platform that charges per transaction it makes sense for me to only make one transfer in once a year perhaps.

I save in a regular saver and high interest current accounts for a year then move it to an S&S ISA.

mark13

I have approx. 40% in biotech, 20% in uk, 20% in Japan, and the rest spread around various other funds. I do have a small stocks account, but I prefer funds and have better returns.