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HL VS Vanguard Portfolios

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Comments

  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    Neither a) or b) but c) I'll take. Thanks for the reply, appreciated.

    FYI I have invested in a HL Portfolio Plus Medium Risk Growth fund through a SIP. Its doing well, but I do appreciate (honestly) that its the long term that matters and could change.

    What does it mean when as you say, a fund is just tracking the market?

    Investments in the fund are traded to match the movements in the market, and will buy shares proportionately in every company in a given index. The result is, therefore, that they simply return the growth that the index shows. There is nobody trying to second guess which stocks are going to do well and buying these in the hope of making a big return.
  • Thank you.
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