What annual % return are people getting (S&S ISA)

coastline

I started investing at a young age with privatisations such as BT,BG and the Utilities.Easy money at first until I went into funds through an advisor and the market crashed within a few months.Its hard to take but you hold on for the recovery after all the longer trend is up despite the ups and downs.Then along comes another crash.!!
Over half the investment was in a managed fund which is probably something like the multi asset fund today.The rest was in worldwide equities.Overall they are up but not in double figures and more like 8%.
My self select Peps now ISA's have done much better but they have all been stock picking where I've tended to buy major companies off the boil.That's the way I go now so I can only blame myself if its not working.
Like many people I also had a fair bit of cash in fixed rate bonds which have averaged more than 6% until recent years as you can see below.This is a major problem for cash investors who never ventured into markets as it looks like low interest rates are here for years.

https://qph.ec.quoracdn.net/main-qimg-adb7a29309d27a1816d2f5f1985c3544

If you are looking for 10% or more it ain't easy unless you are buying and selling or picking winners..
A comment at the bottom of page 2 is also worth noting where cash has averaged 7.39% since 1975.

https://www.trustnet.com/News/516510/the-flagship-funds-that-have-made-the-most-money-since-launch

The MSCI World index can be seen all the way back decades now load up the following.. Investment type..IA Unit Trusts and OEIC's..then Sector...then add IA Global Bonds...IA Mixed Investment 40%-85% shares...IA UK Gilts and IA UK Index-Linked Gilts .
From 2011 to present Global Equities look fine until you start going back further in 5 year stages..eg Jan 1st 2005 to present all the way back to Jan 1st 1990 to present.
Maybe you should just set up a 50-50 fund in Global equities and bonds and just sit back..?

https://www.trustnet.com/Tools/Charting.aspx?typeCode=NM990100

blobby8

"A" portfolio £38373 today. £35291 on 12/12/2015 So 8.7 %
"B" portfolio £25145 today. £22632 on 12/12/2015 So 11.1 %

Added together 9.6%

Primarily individual stocks but not held in an ISA

bowlhead99

To go off topic as I don't have my ISA stats to hand, just to follow up this point:

coastline wrote: »

Maybe you should just set up a 50-50 fund in Global equities and bonds and just sit back..?

Being 50:50 equities and bonds has been a good thing while bonds have been on a 30 year bull run, flattering the returns. However the party has to stop sometime.

The party doesn't necessarily have to stop to the same extent with equities, as they effectively give completely open-ended returns (even Apple and Google can still double their profits and desirability); whereas if bonds are only paying zero or negative yields it is much harder for someone to get 5% a year out of them because the rest has to come from capital appreciation and ultimately they will mature at a known fixed amount.

Since Trump got in, global bonds have dropped in value by over a trillion dollars so clearly there is some 'headroom' to go up to all time high prices / all time low yields. However some investors might argue that a lot of categories of bonds are offering what could be termed "return-free risk" rather than "risk-free returns". So buying something like a bond tracker as the 50% of your 50/50 equity/bond split may not give you the same return potential as using a strategic fund where someone is using a bunch of factors to determine where, if anywhere, there's relative value.

Of course people said this a few years ago after bonds went on a run of unprecedented returns, and they still kept delivering. And they are still safer than equities in an equities crash. So like cash they shouldn't be avoided per se.

The point is simply that returns in the last couple of decades have been flattering to bonds given the theoretical cap on returns that you would usually expect them to offer, and so a 50/50 equity/bond split may on historic measures seem fine (with bonds not being much of a drag in the last decade or two, because of their super-returns in excess of their raw yields) while going forward a heavy bond allocation would act as much more of a brake on the portfolio returns that we hope will fund our retirements.

Thrugelmir

singhini wrote: »

I think it will climb slightly over 2% and the age old government trick to deal with increasing inflation is increase interest rates to kerb it

Trouble is the inflation of the horizon is the bad kind. Next year we could easily see a peak of over 3%. As the increased cost of imported product takes its toll. This will also hit the profitability of UK based companies. Not the environment to raise interest rates. While wage levels continue to stagnate.

singhini

Thrugelmir wrote: »

Trouble is the inflation of the horizon is the bad kind. Next year we could easily see a peak of over 3%. As the increased cost of imported product takes its toll. This will also hit the profitability of UK based companies. Not the environment to raise interest rates. While wage levels continue to stagnate.

I'm not that optimistic, I don't trust them (wage growth is at 1.7% against inflation at 0.9% and unemployment is low at 4.8%).

I'm interested to know if you think inflations could peak over 3% and interest rates were not to be raised, what would you suggest to kerb inflation back to the magic 2% ?

ruperts

Since I started tracking my returns properly about four years ago I've got 7.7% annualised. Before the brexit boom it was more like 4.2%. Still haven't tracked my returns through a major crash. Almost looking forward to seeing what happens to my returns when we get one. I think I could take a crash of about 25% now and still be up overall, which would be pretty satisfying.

Doshwaster

For 2016 I'm showing a 6.1% return on my S&S ISA which isn't too bad considering the tumultuous year we've had but I'm hoping for a late "Santa rally" to push things up a little. Best return was +22% and the worst -5%.

Over the last 5 years I'm currently on a 9.9% annualised which is pretty much spot on my 10% long term aim.

My main pension fund is actually doing better than my ISA despite being split between boring UK and US trackers. That is up 14.5% over the last year. The weakness of the pounds has certainly boosted the value of any investments held Stateside.

Linton

Growth portfolio IRR this year: 24%
Income portfolio IRR this year: 10%

jamesperrett

Over the last 15 years my S&S investment has grown by 80% - this was through two crashes in 2001 and 2008. For much of that time it was languishing in the red and it is only recently that it has grown much. Over the previous 15 years it grew 600%.

jimjames

singhini wrote: »

I'm interested to know if you think inflations could peak over 3% and interest rates were not to be raised, what would you suggest to kerb inflation back to the magic 2% ?

I certainly think inflation could peak over 3%. They may not need to do anything to bring it down. Once one off elements drop out of the calculation then it should drop back naturally. Inflation measures the increase in price index over the last 12 months, so if prices rise a lot and then stay at that level for a few years the inflation rate is high and then drops (to zero if no ongoing increase)