Good funds to invest

Lama_glama

Hello, I have 20k to invest into my stocks and shares ISA on the next fiscal year.

I am looking for good growth funds or growth and income funds to invest in. (Active managed funds).

I am looking for a long term investment (not looking for bonds) and I am willing to take some risks.

The investments I have at the moment are:

- 27k Fundsmith Equity Fund I (16k SIPP +11k Stocks and Shares)
- 4k Fidelity Global Special Situations
- 2k Lindsell Train UK Equity Fund

As you can see it is a very concentrated into Fundsmith, reason being I didn`t know what to invest in, and in the total doubt I put money there to do not lose the ISA allowance and to come out of the 40% bracket - SIPP). Also I am new to investing in funds, but I do not want to hold lots of cash besides my emergency fund.

I chose Lindsell Train UK because the Lindsell global one had a 4% entry fee both on my Aegon pension provider and on Fidelity.

Other informations: I am 33 years old, I have a joint mortgage with a family member (still owe 56.5k each). The other side is not willing to overpay the mortgage, and this will not change any time soon.

It would be great if you could come with some ideas with funds I could invest in (no more Fundsmith though as I have bought enough of it!).

Any feedback/suggestion would be really appreciated. Many thanks.

DairyQueen

What is the value of your current portfolio?

If you are a novice then you may wish to consider a highly-diversified, global passive as the core holding. Fundsmith and Lindsell are both good funds but both are highly-concentrated. Add peripherals that are absent from the core fund (e.g. small caps, China, India). Peripherals also allow you to take a punt on a specific country, area or sector.

Don't invest anything until you know your investment objectives, have chosen a strategy and timescale, and have determined your tolerance to risk.

MarkBargain

I invest in many funds and my best performer has been the FP WHEB Sustainability Fund. It focuses on the opportunities created by the transition to a low carbon and sustainable global economy, and comes out highly in reviews of ethical investment funds.

https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00B8HPRW47

http://www.whebgroup.com/

I don't have Fundsmith yet, but looking at that for 2019/20.

Prism

I would say that if you class Fundsmith as your core fund, and you want to diversify to some degree then look for a global smaller companies fund and then maybe later an emerging markets fund. Plenty of choice - BG global discovery, BMO global smaller, Smithson, Standard Life global smaller companies.

badger09

Lama_glama wrote: »

Hello, I have 20k to invest into my stocks and shares ISA on the next fiscal year.

I am looking for good growth funds or growth and income funds to invest in. (Active managed funds).

I am looking for a long term investment (not looking for bonds) and I am willing to take some risks.

The investments I have at the moment are:

- 27k Fundsmith Equity Fund I (16k SIPP +11k Stocks and Shares)
- 4k Fidelity Global Special Situations
- 2k Lindsell Train UK Equity Fund

As you can see it is a very concentrated into Fundsmith, reason being I didn`t know what to invest in, and in the total doubt I put money there to do not lose the ISA allowance and to come out of the 40% bracket - SIPP). Also I am new to investing in funds, but I do not want to hold lots of cash besides my emergency fund.

I chose Lindsell Train UK because the Lindsell global one had a 4% entry fee both on my Aegon pension provider and on Fidelity.

Other informations: I am 33 years old, I have a joint mortgage with a family member (still owe 56.5k each). The other side is not willing to overpay the mortgage, and this will not change any time soon.

It would be great if you could come with some ideas with funds I could invest in (no more Fundsmith though as I have bought enough of it!).

Any feedback/suggestion would be really appreciated. Many thanks.

Wow, that's an adventurous portfolio.

I'm pretty 'gung ho' with my investments - almost 100% equities (I'm already retired & protected by a final salary pension) but have chosen a global fund of funds for my 'core' holding. I've added global small caps, EM and a couple of managed funds in the last couple of years as my portfolio grew.

I do hold Fundsmith, but wouldn't be comfortable having too much concentrated in 20 - 30 companies as my 'core holding'.

May I ask what you dislike about passive global funds?

Alexland

I have previously made good returns on Fundsmith and LTGE but our investments are now almost entirely in low cost global trackers and multi asset funds. I sleep well at night not worrying when an active fund manager's style will rotate out of fashion.

SB1961

I have a number of core investments, three of which are Fundsmith, Lindsell Train and Scottish Mortgage, all of which have performed extremely well.

I would have a look at Scottish Mortgage as an option, if you haven't already.

These three investments have performed over the last 1, 3 & 5 years as follows:


Fundsmith: 24.84%, 60.06% & 106.52%


Lindsell Train: 23.55%, 66.14% & 99.32%


Scottish Mortgage: 23.75%, 99.04% & 148.09%

londoninvestor

MarkBargain wrote: »

I invest in many funds and my best performer has been the FP WHEB Sustainability Fund.

Not knocking you for investing in environmental sustainability, but this fund has underperformed the MSCI World index over 3y and 5y. If it's your best performer, it would be worth looking at the rest of your portfolio with a critical eye.

Albermarle

I have a number of core investments, three of which are Fundsmith, Lindsell Train and Scottish Mortgage, all of which have performed extremely well.

I have been looking at all three of these as I have transferred a pension (in cash DC to DC) and having to make an active decision where to invest.
However after such growth I am wondering that the downside may be coming soon for them ?

Lama_glama

First of all thanks a lot for the suggestions/feedback.


As I would like to invest part of the money buying funds in the growth and income category (with no bonds in it), do you have any names in mind? What do you think of Baillie Gifford Global Income Growth Fund B Acc.?



- SB1961 thanks a lot for the feedback. I will definitely look into Scottish Mortgage. It looks like the trust is 100 years old! (funded in 1909). If I buy Lindsell Train global though Fidelity unfortunately they charge me 4% entry fee. (A reason why I chose Fundsmith) and I bought the Lindsell TrainUK.


- badger09 nothing against passive funds, but I would prefer active managed funds with an history and good performance.



- Prism thanks a lot. I really like your idea and the Rathbone Global Opportunities Fund Institutional Acc.



Thanks again for all the feedback. This weekend I will look more deeply into all suggestions in order to decide how to allocate the ISA allowance for the next year.


On the meanwhile every feedback/ideas are really appreciated.

cloud_dog

Just a comment on the smaller Co. side of things (and definitely not a recommendation).

I hold EWI (global smaller Co. IT) which has been good (volatile but good) and I am monitoring Smithson Investment Trust (global smaller Co. IT). The reason I may switch is because EWI invests in companies less than £1B market cap, whereas SSON has the ability to go up to £15B (although when did £15B become "smaller company").