Thinking of investing in tracker funds

Albermarle

When you research the multi asset funds , the key point is the risk level that you are comfortable with .
In simple terms the higher the equity % the higher the risk/volatility and the higher the potential growth . Some have a fixed % some have a more flexible risk based approach. However I can see from my own experience that who is the fund provider does not make much difference to the performance, so I would not worry about that part too much.

uknick

bowlhead99 said:

uknick said:

Thanks for the input.  I'll read the SP V FTSE thread and research multi asset funds.

The thread wasn't linked as a great example of something good to read  

Researching multi asset funds is a decent approach. There is no point trying to build your own portfolio from lots of individual specialist indexes for equities in UK, Europe, US, Japan, Asia ex-Japan, Emerging Markets and then also government bonds, corporate investment grade bonds, high yield bonds, domestic bonds, international developed-world bonds, emerging market bonds, long dated bonds, short dated bonds,  commercial real estate etc etc etc and wondering what ratios to use for each proportion. Buy a product that someone else has built, to save you the legwork.

The issue about dividend growth in FTSE and capital growth in S&P wasn't something I was aware of, so some more reading on that topic required.  I thought I might as well start with that thread and then do more research for any questions raised.

uknick

Albermarle said:

When you research the multi asset funds , the key point is the risk level that you are comfortable with .
In simple terms the higher the equity % the higher the risk/volatility and the higher the potential growth . Some have a fixed % some have a more flexible risk based approach. However I can see from my own experience that who is the fund provider does not make much difference to the performance, so I would not worry about that part too much.

I'm happy to put it all in shares, but I'll now research how the different Lifestrategy funds have performed overall compared to each other.  I've not settled on vanguard but I'm hoping their relative performance figures will be an indicator for other companies multi asset products    

bowlhead99

Andyemu said:

Hey guys, so this is a referral code

Please stop spamming this. Getting a free stock through referral to a stockbroker is nothing to do with investing in tracker funds. You you have spammed it on at least three new threads already and if a million forum users all spammed their referral links across the main discussion boards nobody would be able to find the proper discussion content. There's a dedicated referral board.

Thrugelmir

uknick said:

Albermarle said:

When you research the multi asset funds , the key point is the risk level that you are comfortable with .
In simple terms the higher the equity % the higher the risk/volatility and the higher the potential growth . Some have a fixed % some have a more flexible risk based approach. However I can see from my own experience that who is the fund provider does not make much difference to the performance, so I would not worry about that part too much.

I'm happy to put it all in shares, but I'll now research how the different Lifestrategy funds have performed overall compared to each other.  I've not settled on vanguard but I'm hoping their relative performance figures will be an indicator for other companies multi asset products    

The higer the risk the greater the potential long term gain, but the greater the short term volatility. Impossible to have one without the other. Hence why the general guidance to derisk as one enters the decumulation phase of ones life. No longer possible to use ones own endevaours to replenish lost capital.

Malthusian

uknick said:

Albermarle said:

When you research the multi asset funds , the key point is the risk level that you are comfortable with .
In simple terms the higher the equity % the higher the risk/volatility and the higher the potential growth . Some have a fixed % some have a more flexible risk based approach. However I can see from my own experience that who is the fund provider does not make much difference to the performance, so I would not worry about that part too much.

I'm happy to put it all in shares, but I'll now research how the different Lifestrategy funds have performed overall compared to each other.  I've not settled on vanguard but I'm hoping their relative performance figures will be an indicator for other companies multi asset products    

It would be better to compare other companies' actual multi asset products than hope. Two funds with the same equity / bond split could differ considerably in volatility, due to different allocations to countries / sectors / small v large companies etc.

One positive about the corona panic is that we'll no longer be saying "Fund X hasn't been tested in a real crash like 2008". Although within the next few years we're bound to see a lot of new fund launches, which will then be marketed heavily with their corona-free track records.

mark13

I just dipped into a FTSE 100 ETF tracker already have a S&P 500 one.  Both part of a wider portfolio.  Still some up and down times ahead.