Sell Small Caps Fund and move into Lifestrategy

WoB

A year ago I invested a lump sum into Vanguard Global Small-Cap Index Fund. This was pretty much a punt rather than picking some individual shares. The majority of my investments are in various equity funds. In hindsight this Small Caps Fund was at it's peak and in line with most other equities it's dropped (although considerably more in this case). I am thinking I may be better to sell and move the money into something like a Vanguard Lifestrategy 100 now. This is a medium term (10+ years) investment (of the cash) and I'm happy for this to go into high risk. Any thoughts? I appreciate Small Caps may return larger returns once things pick up but maybe a Lifestrategy would reduce any further drops (in comparison) and also recover quicker. I'm still new to most of this so appreciate your opinions.

coastline

Hard to say if its a major downturn or a correction in the markets.
If you set the Timescale in the link at various dates then you can see chances are it will underperform in a major downturn.

http://www.trustnet.com/Tools/Charting.aspx?typeCode=NM106230,NM990100

Eco_Miser

When it goes up, the Small-Cap will normally go up more than Lifestrategy, so selling now will crystallise your loss forever.

WoB

Thanks for the responses. I think I will sit tight with these and hope to see some improvement and return to profit in the years to come.

JohnRo

It's a really good fund, I'm going to be adding a top up to this fund but gambling on global markets falling further which is a sure sign that a spectacular rally is only days away.

It's dropped only slightly more than the VLS100 this year anyway. Their performance profiles are remarkably similar over recent years, disappointingly so imo. I'd hoped for a bit of asynchronous volatility when I bought it but that's global markets for you I guess.

Thrugelmir

WoB wrote: »

A year ago I invested a lump sum into Vanguard Global Small-Cap Index Fund.

Little in point in chopping and changing with the direction of the wind. Incurring unnecessary costs in doing so. Better to rebalance your portfolio with new money thereby adding diversification.

WoB

Thanks for the further replies. This was a one-off investment of a lump sum. Regular monthly investment's will continue across my portfolio. Patience is the key here I guess. Cheers!