c. £100k funds, Investment Advice

bostonerimus

Linton wrote: »

Why cant a "mutual company" go bust? Mutual building societies in the UK have gone bust. In any case you are talking about the US company. According to Companies House, Vanguard Investments UK limited is a private limited company.

A better answer is the investments arent owned by the company and so cant be used to pay its debts. The investments remain the property of the unit holders no matter what happens to the company.

I never said a mutual company can't go bust, Vanguard is structured as a mutual company with the funds and Vanguard as separate legal entities. The customers own the funds and the funds own Vanguard. That particular structure is the important thing.

bostonerimus

Audaxer wrote: »

Thanks Linton. Although I appreciate it is very unlikely, I thought there was a slight possibility of losing your investment and having to claim through the FSCS if there was a major fraud in a fund house?

The only way you'll lose money in a Vanguard fund (or really any big regulated platform) is from good old poor performance of the fund's investment portfolio or by buying a dog of an investment and not reading the Ts&Cs carefully. I have a lot more than £90k in single US Vanguard mutual funds and I sleep soundly.....and I'm a bit of a worrier.

squeeks

As the stock market fluctuates, I would be reluctant to drop all my funds into the stock market at once into a single fund, but would rather drip feed over several years.

I would also say that the stock market has been fairly buoyant at the moment, so may be due a bit of a dip.

But as always do your own research, it may well be worth while paying for some advice from a professional or two who can give you a personalised recommendation.

Be aware that it isn't uncommon for stocks to fluctuate (down as well as up!) by a couple of % a day...

darkidoe

squeeks wrote: »

I would also say that the stock market has been fairly buoyant at the moment, so may be due a bit of a dip..

i say that to myself as well and I am sure many people do that as well. But realistically I don't think you can say when a dip is due until it is here... Always very tempting to make judgement calls like that...

Interest rates are definitely due a rise though. Would be interesting to learn what it does to the markets.