alternatives to woodford equity income

frugal90

I have quite a big proportion of my portfolio invested in woodford equity income -been looking at a bit of diversification but not sure what - the fundsmith equity income fund has done well but why does a fund that does such little trading charge .99%

happy saturday

frugal

Kendall80

Personally I wish i'd had more in Woodford. Hes done well during this correction/crash. Asia pacific region is looking cheap at the mo if you want some equity diversification. I hold axa fram managed income and henderson Uk property which with a global spread of equity funds should prevent severe losses (I hope!).

tg99

Have a look at Artemis Income.

Scarpacci

Lindsell Train is another fund usually mentioned alongside the likes of Neil Woodford and Terry Smith. A very concentrated fund with a clear "type" of business, which has tended to out perform the market.

A smaller fund which matches that style of investing is the Evenlode Income - again, the sort of fund that does not invest in every sector of the market. Its charges aren't significantly lower than Fundsmith, though.

I can understand that Fundsmith's OCF looks higher than others, but trading costs aren't included in that figure so it doesn't seem reasonable to expect it to be lower because of their investing strategy. Trading is a hidden cost and likely a drag on performance. A fund with a low OCF which trades a lot could look cheaper, but might well take a performance hit from all that trading and associated cost.

jimjames

I also use Lindsell Train and have been very happy with their performance. Their charge is also pretty low at 0.65% I believe.