Active managed or index fund

enthusiasticsaver

I have a vanguard LS fund which is a fund of index tracker funds. Low charges and doing very well at the moment. That could change though as nothing guaranteed. 10% annualised return at the moment

Pincher

http://www.thisismoney.co.uk/money/investing/article-2945881/One-three-active-funds-closet-trackers-claim-campaigners.html

Back in the 1980s, IBM was forced to allow compatibles to the IBM PC. I walked into Harrods, and they had a IBM compatible on show, but not Compaq, or some other premium brand. It was painted GOLD, with an inflated price tag. On closer inspection, the innards were just bog standard parts, and you were better off getting a Compaq.



My brother used to say, thank god for useless lazy idiots, because it means people who have a brain and work hard will always have a iiving. If everybody in financial services were razor sharp, and pounce on every mis-pricing opportunity, there won't be any money to be made, other than dividends.



Your job, should you choose to accept it, is to find the fund manager who isn't a lazy idiot.

Director, Impossible Mission Force.

bigadaj

enthusiasticsaver wrote: »

I have a vanguard LS fund which is a fund of index tracker funds. Low charges and doing very well at the moment. That could change though as nothing guaranteed. 10% annualised return at the moment

It's a good fund but given it holds a lot of assets denominated in Europe and the us, then the pound devaluing against the dollar and euro has had a disproportionate affect on sterling denominated returns. This isn't repeatable, so don't count on the 10% continuing ad infinitum.

Ray_Singh-Blue

If in doubt, you can go 50:50

I do this with 50% in a whole-world equity index tracker, and 50% in a mixture of funds and shares chosen by yours truly

(So far the index tracker is winning, it has to be said!)

System

Thank you everyone, on paper I'd definitely switch now if it weren't for me feeling like they handled brexit well and seems to gain quickly compared to anyting I'm used to

I think I'll set up another fund in parelel and compare, maybe use the managed one as advice, I know that's kind of irrational when I don't need to invest to compare or watch its choice of holdings, need to build confidence a bit

dunstonh

I'd definitely switch now if it weren't for me feeling like they handled brexit well and seems to gain quickly compared to anyting I'm used to

It worked well because of their asset allocation. The counter to that is that the perfect storm could hit in reverse later in the year. i.e. markets reacting badly to trump and the dollar falling with sterling on the rise.

The L&G MI funds have a wider allocation and include property. That can further diversify.

System

So I can cover both types of scenario with a 50:50 split diversification can only be good! Thank you