Should I put more money in Vanguard LS60 ?

gerdo

Hello all, some time ago I put £10k into a Vanguard LS60 and it is currently down 9%. I now have another £10k to invest, would it be wise to put it into the same LS60 ? I read that now that prices are down it's a good time to buy.

Or is there something else that would be better to put it into that is a similar risk level?

Thanks.

eskbanker

If VLS60 was a suitable choice for your objectives, strategy, risk tolerance, etc, for the first £10K then there's unlikely to be any particular reason for it to be any less suitable for the next £10K.

Albermarle

All investments are down in the last year or so. Some more than 9% and some less.

VLS 60 is a simple  medium risk investment.
You could go for lower or higher risk. Or you could look at a similar alternative to VLS60, such as HSBC global strategy balanced. Slightly cheaper and slightly better performance recently.
However if you are holding VLS60 on the Vanguard platform, you would have to open a new account somewhere else to buy the HSBC fund.

avidsaver0971

This should come down to your personal preference so it would be wise to make this decision by evaluating your risk appetite, diversification, and the duration you wish to be invested.

No one can time the market, so whether its a good time to buy now or in the future is entirely up to you - but as the saying goes, time in the market beats timing the market. If you think the market will drop further you may want to consider dollar cost averaging (DCA) your £10k into the market instead of putting it in as a lump sum, this would mean if the market dropped further you would be able to buy at a reduced price - but it goes both ways, you could miss out on gains if the market begins to rise.

As for the fund you are invested in, the LS60 is seen as a well diversified portfolio of stocks and bonds and you have an opportunity to buy it whilst it's on sale. This fund does have UK bias so it may be worth considering researching more diversified funds, but again, it is all down to personal preference.

Linton

If you are invested in mainstream funds there is no such thing as simply "better".  There is only more or less appropriate for your objectives and their timing, circumstances and acceptable level of risk.  We dont know what these are.

Assuming that VLS60 is "appropriate" for you ....

It invests in a wide range of assets corresponding to its level of risk and so is suitable as a single holding.  There seems little point in choosing another fund that holds a similar wide range of assets with the same risk profile.  It would probably perform in much the same way.  There is little serious risk apart from major global economic failures. Having two similar funds would not provide any protection.

As to whether it is a good time to buy there are 2 views.  
1) Now is always the best time to buy if you have the money available.  On average delaying buying costs you more in loss of returns whilst you wait than you gain by buying cheaply. 
2) It is better to buy when prices are low.

Whichever view you take now would seem a reasonable time to buy.  

I hope you have sufficient cash in an emergency fund so you will not need to raid your investments should you lose your job, need a new boler etc etc.

gerdo

Thanks for the replies. I don't have sufficient knowledge / appetite to start investigating other options so might just dripfeed the 10k in over the next few months as Avidsaver suggested.

TBC15

Linton said:

I hope you have sufficient cash in an emergency fund so you will not need to raid your investments should you lose your job, need a new boler etc etc.

I may be odd in this matter but I’ve never had the urgent need for a Southeastern Norway farm.