Changing funds

dbrookf

I recently (last week) topped up my Vanguard ISA with £10k and put it into one particular fund – I now feel like changing it to another fund – do I potentially lose money doing this, I.e. chopping and changing? (I’m a novice so forgive the stupid(?!) question!).

george4064

Funds do incur transaction costs, you should be able to find this on the funds’ overview pages or within their factsheets.

Making a switch now to more appropriate fund(s) (assuming you are not correctly invested against your tolerance to risk, goals etc) then the transaction cost will be insignificant compared to the benefit you’ll get from being suitably invested for your investor profile.

dunstonh

I recently (last week) topped up my Vanguard ISA with £10k and put it into one particular fund 

What fund?

 now feel like changing it to another fund – do I potentially lose money doing this, I.e. chopping and changing? (I’m a novice so forgive the stupid(?!) question!).

What alternative fund?

Some funds have dealing costs (ETFs for example).  Others do not.

More important is the fund itself.   For example, are you using a multi-asset fund (which holding a single fund is quite normal and correct).  Whereas using single sector funds are designed to be held as a portfolio of single sector funds (global equity excluded).  So, that typically means 5-15 funds.   If you are holding a single sector fund by itself then that is generally regarded as poor quality investing.

Costabit

I have to ask
What has changed in the financial world this week that makes last weeks choice of fund inappropriate for your investment plans ?
Having said that, I have to agree with george4064 above that the transaction cost will be insignificant compared to the benefit you’ll get from being suitably invested for your investor profile.

eskbanker

george4064 said:

Funds do incur transaction costs, you should be able to find this on the funds’ overview pages or within their factsheets.

Making a switch now to more appropriate fund(s) (assuming you are not correctly invested against your tolerance to risk, goals etc) then the transaction cost will be insignificant compared to the benefit you’ll get from being suitably invested for your investor profile.

The internal transaction costs incurred within funds don't really come into the equation though - they can be relevant when evaluating funds but aren't directly related to the sales or purchases of fund units by individual investors, so OP won't be paying these when switching funds....

dbrookf

dunstonh said:

I recently (last week) topped up my Vanguard ISA with £10k and put it into one particular fund 

What fund?

 now feel like changing it to another fund – do I potentially lose money doing this, I.e. chopping and changing? (I’m a novice so forgive the stupid(?!) question!).

What alternative fund?

Some funds have dealing costs (ETFs for example).  Others do not.

More important is the fund itself.   For example, are you using a multi-asset fund (which holding a single fund is quite normal and correct).  Whereas using single sector funds are designed to be held as a portfolio of single sector funds (global equity excluded).  So, that typically means 5-15 funds.   If you are holding a single sector fund by itself then that is generally regarded as poor quality investing.

From current ‘Global Balanced Fund’ to a more equity based one such as ‘LifeStrategy 80% Equity Fund’.