Is the default fund so bad?

[Deleted User]

notyourrealname said:

Deleted_User said:

“Growth fund” does not mean that this is the fund which will outperform. “Growth” stocks are the opposite of “value” stocks. Historically value stocks outperformed growth stocks, although it hasn’t been the case over the last 10 years. The future... Who knows? Not me. Having said this, right now the valuation discrepancy between growth and value stocks is high by historic standards which could be a bad omen for the former. 

Overall, I think you are making the right decision. In the future, when you have time, read a few books and you’ll pick up all you need to know.  No urgency.  I am not in the financial industry either. I am a nuclear physicist but once upon a time I needed to make investment decisions so I educated myself.  At some point you will also need to understand a bit more about risks and asset classes but given the few options you have, I wouldn’t worry. 

I'd like to have a basic knowledge of what it's all about, at least more than I do at the moment. Are there books that you would recommend?

1. Random Walk Around the Wall Street
2. Bernstien’s “investing for adults” series.
https://www.amazon.com/gp/bookseries/B00SNMP4H6/ref=dp_st_0988780321

3. This one isn’t an easy read, has a bit of maths and is not particularly useful unless you plan to pick stocks but once you read and understand you’ll know more on the subject than 95% of IFAs. Kinda the bible of investments. I found it fascinating that such an old book is as fresh and accurate today as it was then.   https://www.audible.ca/pd/The-Intelligent-Investor-Audiobook/B07142CJWW?source_code=GDGGBRF0814170006&ds_rl=1250324&gclid=CjwKCAiAqJn9BRB0EiwAJ1SztXZQQZC3mE1AfLgbKLQwK9_HUNHCWaEwuNi53geyZ1FgkdWRBr5XRBoCjuoQAvD_BwE&gclsrc=aw.ds

dunstonh

You have not said what the platform charge is , so there could be cheaper available. However you will find it impossible to find a fund charge as low as 0.05% .

Actually, no.   Aegon do a number of multi-asset funds with a 0.05% charge.   And with a platform charge of 0.29% (with tiers and a cap), that brings you to 0.34%.

 

Albermarle

dunstonh said:

You have not said what the platform charge is , so there could be cheaper available. However you will find it impossible to find a fund charge as low as 0.05% .

Actually, no.   Aegon do a number of multi-asset funds with a 0.05% charge.   And with a platform charge of 0.29% (with tiers and a cap), that brings you to 0.34%.

 

The OP was giving the impression that they wanted to move to a more flexible platform with a wider range of funds and expected/hoped  it would work out cheaper . On a typical retail investment platform , you will not find multi asset funds at 0.05% , but typically 0.17% to 0.25% .
OP - platform charges vary in the way they are applied  eg if you have a larger sum than a fixed charge rather than a % is usually cheaper. Some charge for drawdown, some do not etc .
Anyway apart  from the fine details - 0.34% all in is at the low end, so the scope for savings on charges will be pretty limited .