having a dabble

dd95

hi alex, do you know of any similar vanguard funds to l and g healthcare and tech?

also, any other funds that you would recommend just out of interest?

ColdIron

dd95 said:

ColdIron said:

dd95 said:

Alistair31 said:

You could invest outside of ISA ? 

that't true, its unlikely that a small monthly investment will be subject to CGT or dividend tax anytime soon!

But you would need to keep accurate records to prove it if challenged

what is the situation with the tax payment then? Do HMRC reclaim it automatically/notify you if the tax is due or is it your responsibility to inform them?

If your gains or dividend payments are low there are various allowances and exemptions that mean you would probably not owe any tax and you would not need to inform HMRC. My point was that, although unlikely, the tax man can challenge you when ever they wish and it would be your responsibility to provide evidence to back up your position, hence the record keeping. It's not that hard but something you don't need to bother with within an ISA. Is it worth the hassle to you for dabbling with small sums?

Of course one day we all hope our small pots become large pots and then tax can become an issue, you would regret having no records. Once you reach that stage it is your responsibly to declare this to HMRC, there is nothing automatic about it

Alexland

dd95 said:

hi alex, do you know of any similar vanguard funds to l and g healthcare and tech?

Sorry I don't invest in sector funds preferring broad diversification.

dd95 said:
also, any other funds that you would recommend just out of interest?

My favourite two fund portfolio on Vanguard Investor would be their Global All Cap for equities and their Global Bond Index Hedged in an appropriate proportion for your volatility tolerance and likely withdrawal date. This is similar to VLS without the UK equities bias and with more flexibility in the ratio.

bargainhunter888

ColdIron said:

On tiny amounts such as £50 I wouldn't bother, it really isn't going to make any difference. Probably not what you want to hear but it is the fact of the matter

Everyone has to start somewhere...is everyone saving thousands a month on this forum because it certainly sounds like it 

ColdIron

bargainhunter888 said:

ColdIron said:

On tiny amounts such as £50 I wouldn't bother, it really isn't going to make any difference. Probably not what you want to hear but it is the fact of the matter

Everyone has to start somewhere...is everyone saving thousands a month on this forum because it certainly sounds like it 

I'm not denigrating the OP for having small investments and we don't know the sums involved in the VLS80. My point is that at the start of their investment journey feeding tiny sums into satellite funds, or dabbling as the OP says, is not going to be very productive, especially with a diversified multi-asset fund such as the Lifestrategy

Alz1986

ColdIron said:

bargainhunter888 said:

ColdIron said:

On tiny amounts such as £50 I wouldn't bother, it really isn't going to make any difference. Probably not what you want to hear but it is the fact of the matter

Everyone has to start somewhere...is everyone saving thousands a month on this forum because it certainly sounds like it 

I'm not denigrating the OP for having small investments and we don't know the sums involved in the VLS80. My point is that at the start of their investment journey feeding tiny sums into satellite funds, or dabbling as the OP says, is not going to be very productive, especially with a diversified multi-asset fund such as the Lifestrategy

I guess that depends on what is "productive" to you. If that is what the OP is comfortable with, its fine.

kuratowski

ColdIron said:
My point is that at the start of their investment journey feeding tiny sums into satellite funds, or dabbling as the OP says, is not going to be very productive

Yes, the small amounts are a relevant factor, because it suggests the amount at stake is relatively material to OP, and they are at risk of going overweight in one sector, and consequently investing beyond their risk appetite.  It's a familiar trap for beginner investors, thinking you should take some action based on every newspaper article you read.

MaxiRobriguez

bargainhunter888 said:

ColdIron said:

On tiny amounts such as £50 I wouldn't bother, it really isn't going to make any difference. Probably not what you want to hear but it is the fact of the matter

Everyone has to start somewhere...is everyone saving thousands a month on this forum because it certainly sounds like it 

It's not the amount that is getting insulted, it's the (very correct) point that there's not a lot of point having multiple funds on such small amounts.

It'd make more sense for the poster to use the £50 on a workplace pension or SIPP, get the tax break and potential employer top up, and just use the money to buy (or add to hopefully) a global index tracker. That is likely to lead to a better outcome over the long run and is for a novice investor and will vastly reduce the probability of wanting to "play with the allocations because I think I have an edge" type scenario which would likely to lead to non-optimal outcomes.

Everyone starts somewhere, but I agree with the comment that said £50 per month in a new fund doesn't really make any sense. 

Sailtheworld

dd95 said:

thanks coldiron, any feedback (positive or not) is more than welcomed. Would you therefore suggest putting the extra 50 in my vls80?

I would. Don't worry about trying to invest in today's flavour of the month shares. Instead try to get excited about increasing your savings rate. Unless you have a knack for stock picking this is the (rather unsexy) road to riches.

dd95

just for expediency, currently contributing 375 per month to VLS 80 and 200 p, into a HTB ISA

my rationale for looking at those sector funds were because i believe tech will continue to grow and grow and grow, and healthcare will always be in demand (obviously). Also the companies in those indexes are strong and well established and likely to be around for a long time.

there is also a fund i was looking into that had a few of the major companies in the US contained in it (coca cola, mcdonalds, apple etc). Again these are leading companies and in my opinion would be low risk as they are likely to be around for a long long time - of course the indexes invested will be high risk as they are pretty much 100% equity.

as mentioned, just trying to absorb as much as possible, research funds that people mention on here etc