Vanguard - advice

30andcounting

What sort have growth have people experienced with Vanguard? And which fund have you invested in?

Thanks

TJB24

30andcounting wrote: »

What sort have growth have people experienced with Vanguard? And which fund have you invested in?

Thanks

Hi OP, you can find Vanguard's performance history on their website under the fund factsheets. Vanguard offer mostly low-cost tracker funds, i.e. they automatically track the rise and fall of the stock market rather than investing in specific, targeted companies. As they therefore don't employ lots of stock-pickers and analysts, the management fee is very low.

I've heard a lot of people swear by Vanguard, as most "active" funds actually underperform the overall market. However you could be missing out on much greater returns by not investing in those limited number of funds who really excel such as Fundsmith and Lindsell Train. They still manage it for you but will charge slightly more in fees.

There is a famous "FIRE" blogger who invests with Vanguard, and you might find some of his wider principles on money management beneficial. Without knowing anything about your background other than your 30, with a good salary and married with kids, I'm slightly surprised you can only invest £100 pcm. Personally I find his stuff very readable even though he is US/Canada based. Check the link here.

I agree with earlier comments that it depends on figuring what you want to achieve financially. It sounds like you want a general wealth creation/investment fund rather than an extra pension vehicle, but you might want to think about long-term retirement plans now so you can cash in on "free" tax perks early on, or towards mortgage overpayments.

Hope this helps dude.

Alexland

TJB24 wrote: »

I've heard a lot of people swear by Vanguard, as most "active" funds actually underperform the overall market. However you could be missing out on much greater returns by not investing in those limited number of funds who really excel such as Fundsmith and Lindsell Train. They still manage it for you but will charge slightly more in fees.

Yup, there will always be a small number of active funds who are in the right position at the right time and (despite the higher fees) outperform a passive approach for a given period. The problem is that even fewer are able to maintain this outperformance as the markets change. Buying into a concentrated mix of similar assets that have recently had a good run is high risk.

Alex