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woodford equity income fund

joebob
joebob Posts: 486 Forumite
Part of the Furniture 100 Posts Photogenic
in Savings & investments
I have been looking around for something to invest £5000 in, this fund comes in top 3 regularly, a few questions do you take an income out of it yearly how much to set up and ongoing costs and are you tied in. looking at 5 year investment. any thoughts.
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Comments

  • philwal_2
    philwal_2 Posts: 56 Forumite
    You do not have to take an income from the fund this can be reinvested. You will not be tied in either.
  • joebob
    joebob Posts: 486 Forumite
    Part of the Furniture 100 Posts Photogenic
    philwal wrote: »
    You do not have to take an income from the fund this can be reinvested. You will not be tied in either.

    Any idea what costs pa are
  • le_loup
    le_loup Posts: 4,047 Forumite
    Have you thought about looking up the fact sheet?

    All you want to know ... and more!
  • JenniferK
    JenniferK Posts: 277 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    joebob wrote: »
    Any idea what costs pa are

    Depends who your provider is, or whether you buy direct. Buy direct - no additional cost. Hold with Interactive Investor (for example) - £80 per year.

    As Le Loup says you need to look at fact sheet.
  • dunstonh
    dunstonh Posts: 120,301 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    joebob wrote: »
    I have been looking around for something to invest £5000 in, this fund comes in top 3 regularly, a few questions do you take an income out of it yearly how much to set up and ongoing costs and are you tied in. looking at 5 year investment. any thoughts.

    How does it fit with your wider portfolio?
    The reason I ask that is that the Woodford fund is a single sector fund. It is ideally meant to be held with a collection of other single sector funds covering the other regions and asset classes. It is not a fund that is meant to be held by itself. It can be but it would not be good investing if it was.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • joebob
    joebob Posts: 486 Forumite
    Part of the Furniture 100 Posts Photogenic
    dunstonh wrote: »
    How does it fit with your wider portfolio?
    The reason I ask that is that the Woodford fund is a single sector fund. It is ideally meant to be held with a collection of other single sector funds covering the other regions and asset classes. It is not a fund that is meant to be held by itself. It can be but it would not be good investing if it was.

    I have £12000 invested in shares
    £10000 in isa
    £18000 in 123 account
    £250 a month in to m&s savings account
    £22000 in bank ready to invest
    just looking at ways to invest my money
  • dunstonh
    dunstonh Posts: 120,301 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    joebob wrote: »
    I have £12000 invested in shares
    £10000 in isa
    £18000 in 123 account
    £250 a month in to m&s savings account
    £22000 in bank ready to invest
    just looking at ways to invest my money

    So, the fund doesnt really fit with your needs.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • masonic
    masonic Posts: 28,029 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    dunstonh wrote: »
    So, the fund doesnt really fit with your needs.

    Especially given the following:
    joebob wrote: »
    looking at 5 year investment. any thoughts.
  • joebob
    joebob Posts: 486 Forumite
    Part of the Furniture 100 Posts Photogenic
    masonic wrote: »
    Especially given the following:

    are you saying 5 years is not long enough ?
  • dunstonh
    dunstonh Posts: 120,301 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    joebob wrote: »
    are you saying 5 years is not long enough ?

    An economic cycle is around 10 years. So, you would be investing for half of it. Are you going to get the good half or the bad half? (simplistic way of wording it I know but that is the risk of a short term.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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