Baillie Gifford American - ouch!!

Bobziz

swleventhal said:

All the Google and news alerts I'm getting now on my devices about investing and markets doesn't help either. It can lure you in to emotional and FOMO decisions which isn't ideal.

I suspect this is a major challenge for many investors, myself included. Good reason to go passive or use an IFA maybe...

Prism

Also its the combination of fund returns that matter, rather than an individual one. For example one of my funds is down 7% YTD, another is up 22% and the rest in the middle. Over a different time period that all swaps about.

Thrugelmir

swleventhal said:

All the Google and news alerts I'm getting now on my devices about investing and markets doesn't help either. It can lure you in to emotional and FOMO decisions which isn't ideal.

There's rarely a need to rush into making buying investment decisions. The real economy moves at a far slower rate than the broader stock markets. 

Novice_investor101

For what it’s worth, I did the exact same thing in my ISA! Moved £2k into BG American just before it dropped. I probably bought at it’s very peak. I’m just leaving it, shrug of shoulders & one of those things. £2k was a speculative punt to spice things up a bit, this one didn’t go how I’d predicted. I’ll leave it where it is for the next 20 years, I’ve no intention to sell until I need to derisk. £2k is a very small % of my wealth. 

On the other hand, my £1k speculative punt on Aviva shares at £2.30 last May has paid off. I’m waiting for the latest dividend to come in & if the price hits £4.20 again I’ll be selling out & putting the cash back into the global tracker the £1k came from. Won that one. 

coyrls

swleventhal said:

Should I reinvest from this fund into something less risky (eg a balanced multi asset fund) once the fund recovers in x months/years?

That's the wrong way to think about it.  What if the fund doesn't recover?  What if the fund recovers but over the same period your target balanced multi-asset fund increases by a bigger percentage?  Decide on your target asset allocations based on your risk tolerance and change to that target now.

csgohan4

OP if your getting worried about the drop from your fund choice, perhaps the risk appetite for you is not as high as you would like. BG America is a high risk fund. If you want to sleep better, why not invest in a global index tracker and leave it there

IvanOpinion

JohnWinder said:

swleventhal said:

 However I read that one of their top investors had recently retired. Yes I'm aware this is a major risk with an actively managed fund over a tracker/index. 

'investors'? Did you mean 'investors' or 'managers'?

I assumed they were talking about Tom Slater

Thrugelmir

csgohan4 said:

OP if your getting worried about the drop from your fund choice, perhaps the risk appetite for you is not as high as you would like. BG America is a high risk fund. If you want to sleep better, why not invest in a global index tracker and leave it there

Global index trackers potentially could be equally as volatile. There's no guarantees when it comes to selecting individual equity markets. 

ChilliBob

Ha ha I ended up doing something similar actually, but it was a tiny holding in a new ISA for my partner, so a minor irritation. Whilst it had slipped it was 20% off its 52wk high when I invested which is something. Irritatingly the same thing happened with a few other active funds, but some of the UK small caps propped them up a bit to lessen the damage!

I do find this smaller scale investing, but with real money, is very useful learning experience for me before moving to my GIA. Yes, perhaps at the espense of some time in the market in the GIA but perhaps time in the wrong instruments in the wrong proportions! 

csgohan4

Thrugelmir said:

csgohan4 said:

OP if your getting worried about the drop from your fund choice, perhaps the risk appetite for you is not as high as you would like. BG America is a high risk fund. If you want to sleep better, why not invest in a global index tracker and leave it there

Global index trackers potentially could be equally as volatile. There's no guarantees when it comes to selecting individual equity markets. 

but a specific fund which focussed primarily on the S+P 500 is more volatile than a global tracker, where potentially around 65% of USA Exposure