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Comments

  • green_man
    green_man Posts: 560 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 16 December 2019 at 5:15PM
    Obviously I don’t know what funds you were in, but chopping out of funds that have done badly into those that have performed the best over the previous few years can be asking for extreme underperformance. You have missed the last few years of over performance, trying to chase top performers is a dangerous game IMO.

    Having said that Fundsmith and LT have their fans, but don’t expect performance akin to the past few years. Obviously VLS100 is passive so if you want to be in equities you can’t go too far wrong with it.
  • Linton
    Linton Posts: 18,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    That's where the money is now, it's been in other funds which have gone down and I've cut my losses and moved the money.
    In general cutting losses is a very bad move with mainstream funds. Funds that go down are likely to go up again - unlike individual shares very very few funds dwindle to nothing. If you sell after a fund goes down you are guaranteeing a loss compounded by buying another and waiting till that one goes down as well. This is perhaps why your 4 year returns have been so bad.
    I guess my question is the above funds are they all too alike?

    The money won't be needed for 10+ years and isn't my main pension.


    They are alike in that, except for the Small Companies fund, in they all invest globally in much the same universe of companies. The Vanguard fund invests in all large companies, Fdunsmith and Lindsell Train Global Equity both choose a small number of companies they believe will perform particularly well. No harm is being done since each fund is in itself very diversified, however those three and to a lesser extent the Small Company fund will tend to rise and fall together. The result is that all your chosen funds, and your portfolio as a whole, could well drop 40% or more in the next major crash.
  • fred246
    fred246 Posts: 3,620 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Probably got an IFA involved.
  • AlanP_2
    AlanP_2 Posts: 3,560 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    fred246 wrote: »
    Probably got an IFA involved.

    Based on what?
  • Linton
    Linton Posts: 18,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    fred246 wrote: »
    Probably got an IFA involved.


    I see the OPs DIY strategy it as an excellent example of why paying for advice from an IFA could easily pay for itself.
  • Yes, the DIY hasn't really worked with this.
  • Prism
    Prism Posts: 3,861 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Looks decent to me, very similar to my ISA portfolio
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