First Time Investor:Vanguard Lifestrategy

Dunney77

bowlhead99 wrote: »

No point - they have only been going since 2011, which has been a bull market for equities (especially) and bonds and would not be a realistic long term return.

My concern is this. Not sure how these funds would perform if global markets fell again on a scale of 2008.

Although history is no indicator, a relatively new fund is difficult to judge!

JohnRo

The regional index funds that constitute the Lifestrategy range all have much longer histories.

dunstonh

My concern is this. Not sure how these funds would perform if global markets fell again on a scale of 2008.

VLS80 would fall about 35% and VLS60 about 28%. It really depends on the scale of the crash but those would be broadly the levels seen during the last two stockmarket crashes.

Although history is no indicator, a relatively new fund is difficult to judge!

The asset makeup gives you a good indication though.

green_man

The crux is whether you are looking as this as a long term investment (i.e. retirement 20+ years) or whether it is for more short term investment (house deposit etc).

Most say to invest in equities you should be looking to invest for at least a whole economic cycle (which are typically 5-10 years).

If you are looking at a 20+ year horizon and are investing monthly then my view is you should be investing in the lifestyle 100 (or similar) and importantly must have the temperament to keep putting in if the fund halves in value.

If you are looking at 5-10 years then the 60 fund may be more suitable.

But before you commit all you extra cash to this please look at you pension arrangements especially if you are a higher rate taxpayer.