My S&S Not going well..

Thrugelmir

tichtich said:

grumiofoundation said:

6022tivo said:

grumiofoundation said:

What made you invest in these 2 funds? 
I'd be surprised if anywhere you read suggested holding these 2 funds in isolation.

What made you not go for the diversified HSBC offering (or other multi-assest funds) and just invest in these 2?
https://forums.moneysavingexpert.com/discussion/6242885/s-s-isa-hsbc-global-strategy-or#latest

How will you making a 'better effort' help? Have you not been making an effort up to now?

I'm not too sure tbh, possibly I was scanning through their top i60 and went for two separate funds in different areas, and was going to keep going to build up a more diverse portfolio. 
Why I didn't go for a fund then? again, thought by doing things myself with different fund areas (Not sure of the terminology) it would be a saving on management funds etc? Again, not the best move. 
I'll leave them as is, and just look at the managed funds, Vangaurd, BMO some of the HSBC ones and any others that get mentioned on here I think.
I though it would be fun to check in all the time and adjust from time to time. But it really isn't, for me anyway. 

So, look at Vanguard, BMO, HSBC and any others I should consider? 

Probably seen this link posted on previous thread(s) (link ~year old now)
https://monevator.com/passive-fund-of-funds-the-rivals/

Nice article. Thanks. I particularly liked this part:

They ignore Jeremy Siegel’s research that indicates companies removed from the S&P 500 Index actually outperform the companies that replace them in the index (Siegel pointed out that buying the original S&P 500 and holding it forever would give you an extra 1.5% per year over actually owning an S&P 500 index fund that incorporates the new changes because the depressed valuations of companies leaving the S&P 500 provide a value basis for outperformance going forward.)

Changes to the constituents in an index are known.  Buying into companies that heading towards promotion isn't anything new. One reason why active managers in the FTSE midcap space have performed consistently well over the decades.

 Look at Tesla's share price last year once it hit social media that S&P inclusion was only matter a time (some thought would happen in September rather than December). Then the price spike as passive funds were forced to rejig their portfolios , subsequently the tail off from early January once these trades were completed.

DairyQueen

I hold BG Shin Nippon as one of my small company satellites. These types of funds are higher risk/volatility so possibly best included as an addition to a core, global fund. 

It's up 37% on the year but down 10% on the month. This is just a factor of its higher volatility and sensitivity to market conditions. My small cap funds have seen a big variety of returns and volatility over the last, few years.

You say you are investing for 'the longer term' so that suggests 10+ years. Just because the fund dropped so quickly after you bought doesn't mean it isn't a good long-term investment. It's par for the course to see such drops when investing in equities.

You will build confidence if you adopt a strategy before you next invest. What are your aims? Investment timescale? Attitude to risk? How will you approach diversification? By region? Marketcap? Theme? 

If you wish to become more actively involved in investing then your attitude to risk is very important. A regional, small-cap fund could drop more than 50%. Are you able to resist selling if that happens? If not, then you may be best-served sticking with a well-diversified, global large-cap.

The best lessons are learned from mistakes/experience so don't lose confidence, or beat yourself up, over a small correction that coincided with your first dabble. Don't try to time the market - nobody can.

My 'best' learning experience - and I still cringe at the memory - happened back in my single-share investing days. I took a punt on two US companies. One doubled in price, but I lost my shirt on the other. Zero gain for a year-long, roller-coaster ride that kept me awake on more than one occasion.

Never again. Single-share investing requires the kind of knowledge and tolerance of risk that is way beyond my level, but I only learned that with hindsight. Our equity allocation is now split roughly 80/20 between global passives (large caps) and actively-managed, regional small caps. The latter are much more volatile but it goes with the territory.

There is no evidence that you 'can't manage money'. Just that you are on a learning curve that will benefit from more research and experience. So, don't sell unless these funds don't fit your portfolio after you have your research ducks in a row.

Good luck.

6022tivo

DairyQueen said:

I hold BG Shin Nippon as one of my small company satellites. These types of funds are higher risk/volatility so possibly best included as an addition to a core, global fund. 

It's up 37% on the year but down 10% on the month. This is just a factor of its higher volatility and sensitivity to market conditions. My small cap funds have seen a big variety of returns and volatility over the last, few years.

You say you are investing for 'the longer term' so that suggests 10+ years. Just because the fund dropped so quickly after you bought doesn't mean it isn't a good long-term investment. It's par for the course to see such drops when investing in equities.

You will build confidence if you adopt a strategy before you next invest. What are your aims? Investment timescale? Attitude to risk? How will you approach diversification? By region? Marketcap? Theme? 

If you wish to become more actively involved in investing then your attitude to risk is very important. A regional, small-cap fund could drop more than 50%. Are you able to resist selling if that happens? If not, then you may be best-served sticking with a well-diversified, global large-cap.

The best lessons are learned from mistakes/experience so don't lose confidence, or beat yourself up, over a small correction that coincided with your first dabble. Don't try to time the market - nobody can.

My 'best' learning experience - and I still cringe at the memory - happened back in my single-share investing days. I took a punt on two US companies. One doubled in price, but I lost my shirt on the other. Zero gain for a year-long, roller-coaster ride that kept me awake on more than one occasion.

Never again. Single-share investing requires the kind of knowledge and tolerance of risk that is way beyond my level, but I only learned that with hindsight. Our equity allocation is now split roughly 80/20 between global passives (large caps) and actively-managed, regional small caps. The latter are much more volatile but it goes with the territory.

There is no evidence that you 'can't manage money'. Just that you are on a learning curve that will benefit from more research and experience. So, don't sell unless these funds don't fit your portfolio after you have your research ducks in a row.

Good luck.

Many thanks for all that, great reading. 
You're right. I'll try and not get down by it.  Although it's not my intention to lose money, I do treat all this like gambling and my life won't change if I lose it all, I'm just trying to beat inflation. 

I used to single share invest quite a lot, and like you said it's a roller coaster. 
I remember buying a load of Victoria Gas and Oil and losing nearly everything. At the same time I quadrupled my money with Taylor Wimpy. 
Made a bit from Royal Mail more recently when they came available. 
I'm glad the conscious that the two funds I plunged a bit of cash in should actually be ok long term. I'm not one who bottles it and sells if it loses 50%, as with Victoria Oil and Gas, I still have the shares somewhere I think. One day, they may be worth millions.. 
I'll read through the replies again and crack on, many thanks.

george4064

I actually happen to hold both ITs within my ISA portfolio, JMG is c. 12.5% and BGS 7.5% of a diversified equity portfolio.

Nothing wrong with holding them as part of a diversified portfolio, but to hold them in isolation in a two IT portfolio is very risky and unbalanced.

Assuming you do indeed only hold these two ITs in your portfolio you should look to rectify that. Simply put, you have two options:

1. Sell both ITs and re-invest in either a passive global equity fund or an active global equity fund.

2. Set sensible strategic targets for other funds/ETFs/ITs in all the other regions you are not invested in, and invest in those other assets so that you are invested across all the regions according to your targets. With JMG being your EM exposure and BGS your Japanese exposure.