Interactive Investor don’t do my fund?

jobits

Goodness edkbanker, I’m a novice! I just want to make some money on my investment, I really don’t understand by what you mean ... my target allocation and why? I’m concerned that jacking in my uk index tracker would be a bad move, I’ve had it 10 years and if I sell now I will make 10k as opposed to the 30k a couple of weeks ago. Keeping it just chugging along for another 10 years until it goes back up is ok, I don’t need the money yet. I was only thinking of starting a global fund as everyone keeps telling me this is a better investment....or are are you saying I should switch from the Uk tracker to the global?

dunstonh

This is my only fund, so I guess it’s a no no! I

Yes, its very poor investing.    And what you are doing is a playing around the edges and not sorting the key problem

 just want something I can add to monthly and forget about. 

IN which case you should have a multi-asset fund or, if your risk profile is as high as you currently are, then a global including UK tracker.

Is now a good time to change though?

yes it is.    You should always view your investments on the basis of how would you invest if you were putting the money in today.

 I really don’t understand by what you mean ... my target allocation and why?

When you hold single sector funds, you hold them as a portfolio and allocated x% to each sector.  e.g. x% in UK equity, y% in US equity, z% in European etc etc.    The target allocation you hold is a decision you make based on your research and ansysis.

Or if you are a novice then you go with a multi-asset fund that does all that for you.

 I’m concerned that jacking in my uk index tracker would be a bad move

Staying with it is a very bad move.

You have made a mistake with your investing for the last 10 years.  Staying put just extends the period you have poorly invested.

Alistair31

jobits said:

or are are you saying I should switch from the Uk tracker to the global?

You pays your money and you takes your choice.

eskbanker

Alistair31 said:

jobits said:

or are are you saying I should switch from the Uk tracker to the global?

You pays your money and you takes your choice.

[charts showing global funds outperforming UK ones over last five years]

Perhaps worth making the oft-repeated point that past performance isn't a reliable indicator of the future - I'm sure most would agree that diversifying globally reduces risk versus concentrating all eggs in the UK basket, but it doesn't necessarily signify better performance, in that it's plausible that UK equity performance could outperform global averages over the next few years, as the nature of averages is that many will be above them and some individual countries/markets have to be at the top of the rankings.

Obviously there are many who are convinced that the UK will lead the way as we rush headlong for the sunlit uplands, unfettered by EU bureaucracy, blah, blah, blah, although it would be interesting to know how many would actually put their money where their mouths are....

kuratowski

eskbanker said:

Obviously there are many who are convinced that the UK will lead the way as we rush headlong for the sunlit uplands, unfettered by EU bureaucracy, blah, blah, blah, although it would be interesting to know how many would actually put their money where their mouths are....

Even those who are most optimistic about the UK wouldn't use a 100% allocation though, that's just not sensible.  If you have a conviction the UK will outperform in the next cycle (heaven knows why) the logical thing would be to overweight it relative to the rest of the portfolio, not to go all in.

AnotherJoe

Your question is like worrying whether under your mattress or the mattress in the spare room is the best place for your money in the long term.

This is a terrible fund because its a terrible place to invest, and to make it worse to have 100% of your money invested in what realistically is maybe 30 companies* half of which are going to take a kicking from the downturn, not that they were much better before.

Get out of it and buy something global instead.

* because of the way the index works the top 20-30 companies  make up most of the index. And a fair few of them are oil companies. Good luck with that.

Alistair31

eskbanker said:

Alistair31 said:

jobits said:

or are are you saying I should switch from the Uk tracker to the global?

You pays your money and you takes your choice.

[charts showing global funds outperforming UK ones over last five years]

Perhaps worth making the oft-repeated point that past performance isn't a reliable indicator of the future - I'm sure most would agree that diversifying globally reduces risk versus concentrating all eggs in the UK basket, but it doesn't necessarily signify better performance, in that it's plausible that UK equity performance could outperform global averages over the next few years, as the nature of averages is that many will be above them and some individual countries/markets have to be at the top of the rankings.

Obviously there are many who are convinced that the UK will lead the way as we rush headlong for the sunlit uplands, unfettered by EU bureaucracy, blah, blah, blah, although it would be interesting to know how many would actually put their money where their mouths are....

Something tells me the OP is not reluctant to let go of his current investment because he has conviction in its outperformance over anything else. Of course it is right to caveat any comparison re. past performance etc but I hope my comparison at least helps the OP in seeing how much of a dog his current investment has been.

eskbanker

kuratowski said:

eskbanker said:

Obviously there are many who are convinced that the UK will lead the way as we rush headlong for the sunlit uplands, unfettered by EU bureaucracy, blah, blah, blah, although it would be interesting to know how many would actually put their money where their mouths are....

Even those who are most optimistic about the UK wouldn't use a 100% allocation though, that's just not sensible.  If you have a conviction the UK will outperform in the next cycle (heaven knows why) the logical thing would be to overweight it relative to the rest of the portfolio, not to go all in.

Indeed - for the avoidance of doubt I wasn't advocating not diversifying, but was simply challenging the apparent implication in Alistair31's choice of charts that a global index should be expected to outperform a UK one!

jobits

Thank you all so much for this advice. Dunstonh thanks for explaining so clearly....I now know what I need to do!

MancJonny

jobits said:

I have about 50k invested in HSBC FTSE ALL SHARE INDEX tracker and given that it has dropped significantly in value recently, I decided my best course of action was to transfer to a cheaper platform. I’m currently with HL and wanted to move to Interactive Investor. II have advised they no longer deal with my fund and advised I should either stick with HL or sell to put in a different fund. Would it be detrimental to do the latter? I realise it’s not a great fund but is the benefit greater to stick with it? Would really appreciate help with this, thank you.

I am in the process of transferring assets from the Vanguard platform to ii.  ii advised me that Vanguard's FTSE All-World UCITS ETF [VWRL] fund (which I hold) is not available on the ii site, but I checked the ii platform and they do stock it.  I advised them of this and they apologised and said that the transfer could go ahead.  The target date of completion of transfer is 27 May; the transfer commenced on 15 April - about 6 weeks.

Curiously, they sent me a reminder about the completion date and they still had the VWRL holdings listed as "unsupported investments", but at the same time listed those same funds as ones that were "being transferred".  Must be a glitch in their software.

I have just checked your HSBC fund on ii's platform, and they have that one too.  Another glitch?