Advice on funds I have looked into

bradqwer

justme111 wrote: »

with the low sums involved differences between the choices even if one choice is great and another not would be inconsequential.

Cheers that's what I thought u was getting at what your implying that if the end of the year it all went tits up 1,200 wouldn't be a amount worth worrying about?

Obv once the amount builds up its a different story but we shouldn't really see it as inconsequential as we don't want to take that mindset into the investing journey

Prism

You have two decisions to make here. Firstly do you agree with a statement like this by Lars Kroijer.

'You accept that like most investors you don’t have an ability to outperform the financial markets (a so-called ‘edge’) and as a result you agree that you should invest in index tracking products. In other words you’re what I call a ‘rational investor’

You could watch some of his videos on Youtube to get a fuller idea.
https://www.youtube.com/watch?v=_chiIIxMGl0

Also, since you are considering Lindsell Train then maybe compare to one of Nick Train's
https://www.youtube.com/watch?v=F0CsfMKakFQ&t=86s

Secondly you need to work out if you really want 100% equities. If you don't and still want to go active you will need to also consider some sort of bond fund.

I totally agree with Lars's statement and believe that Nick Train is not one of those 'most' investors.

Aminatidi

If you go with a multi-asset I'd just choose one.

Nothing to say you couldn't use that as a core and drop something like Lindsell Train Global Equity on as a 20% (or similar) allocation.

Fatbritabroad

Aminatidi wrote: »

If you go with a multi-asset I'd just choose one.

Nothing to say you couldn't use that as a core and drop something like Lindsell Train Global Equity on as a 20% (or similar) allocation.

This is exactly what I've started to do now I have a larger sum. Vanguard 100 in my isa with vanguard small cap and pantheon as satellites. Blackrock 100 in partners isa with cty and fundsmith as satellites

Tom99

bradqwer wrote: »

TBH Alex I'm just looking at loads of funds and picking ones that sound good.
Will look at the other two u suggested now
These?
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-income

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-global-strategy-adventurous-portfolio-accumulation/key-features

[FONT=Verdana, sans-serif]When you look at those two make sure you are happy with the weightings.[/FONT]
[FONT=Verdana, sans-serif]The 1st one invests 51% in US shares and 5.3% in UK shares.[/FONT]
[FONT=Verdana, sans-serif]5.4% is invested in Apple, Microsoft and Amazon, so the same in those three as the whole of the UK stock market.[/FONT]
[FONT=Verdana, sans-serif]Not a single UK stock makes it onto the top ten so you will be investing more (0.64%) in Berkshire Hathaway than you are in HSBC, Shell, GSK etc.[/FONT]
[FONT=Verdana, sans-serif]If you are happy with that, and many investors will be, ok.[/FONT]
[FONT=Verdana, sans-serif]
[/FONT][FONT=Verdana, sans-serif]Some folk on this forum think that if you want to invest more than the 5% in the UK, that a world index will give you, then you are crazy.[/FONT] [FONT=Verdana, sans-serif]However, to me, investing 10x as much in one area just because 10x as much stock is available seems a very poor justification.[/FONT]
[FONT=Verdana, sans-serif]If you go into Tesco wanting some apples and pears and there are 10x as many apples on display as pears, you don't automatically buy 10 apples and 1 pear, unless that's exactly what you want. Maybe 5 apples and 5 pears would be better.[/FONT]

justme111

bradqwer wrote: »

Cheers that's what I thought u was getting at what your implying that if the end of the year it all went tits up 1,200 wouldn't be a amount worth worrying about?

Obv once the amount builds up its a different story but we shouldn't really see it as inconsequential as we don't want to take that mindset into the investing journey

It would not be about £1200 lost with the above choices. Most likely it would be £10+or £10-.
All fine and dandy about " no amount is inconsequential" but if you wanted to be really knowledgeable about this stuff before starting putting £100 in them it would be counterproductive as it would take you realistically years of dedicated research if ever - most likely you would just drop it altogather and be worse off as a result.

dunstonh

The reason why its largely irrelevent what you do in with such a small amount is because the difference in returns wont make much difference in the monetary value until you get to around £10k.

£100pm with charges of 0.50% p.a. (assuming platform and a low cost multi-asset fund
5% pa over 10 years = £15,119
6% pa over 10 years = £15,950
That is just £831 in future money terms (i.e. not todays spending power)
If we shorten the term to 7 years to get us to the £10k mark...
5% p.a. = £9,852
6% p.a. = £10,217
7% p.a. = £10,601

Again, future money terms, not today's spending power and not a lot of difference.

So, looking at performance differences until you get to £10k is really not worth it. It is usually best to go with a low cost multi-asset fund.

The biggest risk with regular contributions is a loss event around years 10-15 if you need the money out around that time. Loss events in years 7 or earlier are desirable and help your investments.

bradqwer

Hey guys so I have decided that I am going to drop between £50-£75 per month into the following funds

75% into a standard Vanguard 80 Product ACC
25% Into the Lindsell Train Global Equity ACC

All wrapped in a little S&S ISA

Wish me luck!