INVESTMENT TRUSTS - understanding data

agal

baby_boomer wrote: »

But if you're going for India or high risk markets then regular saving can help to reduce risk.

Amen to that!
My wife invests £50 p.m. in JPM Indian. For small amounts costs are important. She invests directly through JPMorgan http://public.jpmorgan.com/portal/site/it-uk
who charge just the 0.5% Stamp Duty (there used to be a 1% dealing charge in addition, but that seems to have stopped around the end of June this year).
OTOH she also invests £50 p.m. in First State Indian Subcontinent via HL with an initial charge each month of 0.25% and an annual charge of 1.65% (after HL discounts).
Which is better? I don't know, look at the chart and decide for yourself https://www.h-l.co.uk/my_accounts/fund_performance.hl?x=31&y=11&sedol=B1FXTF8&timescale=4&timespan=12&chart_scale=R&tr=&compare_index=none&store_compare_indices=&compare_provider=none&store_compare_funds=&compare_fund=none&compare_share=JII

cloud_dog

I would not recommend I.T's to a novice. In my opinion they tend to carry more risk (and potentially more reward) than an OIEC / UT as they can gear (borrow money - enhances the rewards but greatly increass the risks) and, as someone mentioned, the price does not necessarily reflect the value of the underlying assets; the share price can be more or less than the NAV.

moneylover wrote: »

Would you not get a warning or a wobble or read articles about market corrections before a fund dropped 30% unless there was some sudden completely unforseen event affecting all money markets?

What makes a market is different opinions - some think a share / company / market is cheap, some think its expensive. Which ever you find yourself to be a lot of it comes down to human psycology - different people have different attitiudes to risk and greed (when should I buy / sell).

As a previous poster pointed out market go up they go down. If your investement went (over a period of days) +2%, +1%, +5%, -1%, -1% you'd probably feel comfortable but, then it goes -5% you're back to break-even, what do you do? (I'm doing ok, I'll leave it), +1% (ah its going back up), -5% (oh, but its only 4% down I'll leave it), +2% (oh good), -3%, -4%, (umm I'm down almost 10%......but its only 10% I'll leave it), -7% (OMG I 'cant afford to sell now I'd lose 15% of my investment). This is when psycology really comes in to play...............

Some would argue that to invest you should have an entry and exit point and if you reach it you should act, i.e. if it loses 10% you sell - and it is very difficult to be that strict. Others would argue that you made your decision based on the info at hand and assuming nothing terrible has changed you stay invested as over the longer term things tend to go up.

Psycology - what do you do????

cloud_dog

cheerfulcat

dunstonh wrote: »

Only if you pay for that service. Most stockbrokers will have fixed dealing times as well for consumer deals. If you want micromanagement, that tends to come at a cost.

Eh? Shares and ITs are bought and sold in real time, unless one is using a batch dealing service like the Halifax Sharebuilder.

aspiration_2

Many thanks Mr.Mumble and JDinho for the valuable contribution regarding NAV, and others for the immenslely informative discussion. I am glad that agal appears to have gone through my predicament and has shared his experience. Thanks for putting me at ease.

It is always not cheaper to buy via fund supermarkets ?? Please correct me.

I can find the NAV for the Indian IT but not the price/earning ratio ?? What am I doing wrong ?