£1,000 in Vanguard LifeStrategy 100% Equity just to see if I can take the risk over 6-12 months

original1

I have put in £1,000 in Vanguard LifeStrategy 100% Equity (Accum) just to see if I can take the risk over 6-12months. I tend to check fund values, stock market performance more often than I know I should. Just a bad habit... No more to be added to the initial £1000.

I will see if I can handle the ups and downs even though on a smaller scale than others.

Sea_Shell

How much, as a percentage of your total savings/investments, does that £1000 represent?

1% or 100%

ColdIron

A pointless exercise, what will you learn over a few months?

If you are unsure now you should dial down the risk now

400ixl

No two 12 months will ever be the same, so can't see the point.

How long do you plan to hold the investment?

Alexland

For 100% diversified global equities you just need to settle in your mind if you can cope with seeing circa 50% drops (or higher if markets are at extreme valuations) that could persist for years - ie worse than the 2020 covid mild, almost flash crash.
My recollection of investing during the dot com and financial crisis crashes was there wasn't even relief at the bottom of the market - it still felt like it might fall further. Worse still with each crash you likely have more money at risk and any recent contributions won't have accumulated gains yet to act as an emotional buffer.

Bravepants

Why didn't you choose Vanguard's FTSE Global All Cap fund instead?

Albermarle

I have put in £1,000 in Vanguard LifeStrategy 100% Equity (Accum) just to see if I can take the risk over 6-12months.

So if at the end of 12 months it could be say £1200 and you think this is going well and add another £1000 and then the next day it drops 40% .

One year is far too short a timescale to assess any investment.

Thrugelmir

original1 said:

I have put in £1,000 in Vanguard LifeStrategy 100% Equity (Accum) just to see if I can take the risk over 6-12months. I tend to check fund values, stock market performance more often than I know I should. Just a bad habit... No more to be added to the initial £1000.

I will see if I can handle the ups and downs even though on a smaller scale than others.

What happens after the 6-12 month period is up?  

original1

This is a fund I have chosen myself not via any work place fund or someone else choosing it for me. I may also look to put £1000 into the Vanguard's FTSE Global All Cap fund as I have heard about this as well. Mainly through MSE, Instagram and You Tube Financial gurus (some US based).

For many years didn't actively pay attention to performance of pension, so I want to see how it performs daily and if I am comfortable with the movements on a fund I have decided on. 

I have read lots on 40% drops, 60% drops, if it does happen in the next  6-12 months then I want to see if it will change my perception, as my mind will be saying buy more, drip feed, dollar cost average etc all terms I am learning since crystalizing losses during covid market decline.

In respect of overall savings this is the only fund apart from pension where money is invested approx. Rest is in house.

Sea_Shell

original1 said:

This is a fund I have chosen myself not via any work place fund or someone else choosing it for me. I may also look to put £1000 into the Vanguard's FTSE Global All Cap fund as I have heard about this as well. Mainly through MSE, Instagram and You Tube Financial gurus (some US based).

For many years didn't actively pay attention to performance of pension, so I want to see how it performs daily and if I am comfortable with the movements on a fund I have decided on. 

I have read lots on 40% drops, 60% drops, if it does happen in the next  6-12 months then I want to see if it will change my perception, as my mind will be saying buy more, drip feed, dollar cost average etc all terms I am learning since crystalizing losses during covid market decline.

In respect of overall savings this is the only fund apart from pension where money is invested approx. Rest is in house.

You say only fund.   Do you have any other cash savings?     

If not, then I'd suggest not investing anything, until you have built up an emergency cash fund of 6-12 months income.

Thrugelmir

original1 said:

I have read lots on 40% drops, 60% drops, if it does happen in the next  6-12 months then I want to see if it will change my perception, as my mind will be saying buy more, drip feed, dollar cost average etc all terms I am learning since crystalizing losses during covid market decline.

And if very little happens. What will you then deduce from the exercise?