Thoughts on which fund(s) to sell

poppy10_2

EthicsGradient said:

I'd be inclined to sell the funds with the highest charges, which I'd guess would be the HSBC ones, the micro cap and the ethical (leaving the Vanguard ones). 

I wouldn't be so sure. The fee for the HSBC GlobalStrategy Adventurous fund (0.21%) is cheaper than Vanguard's LifeStrategy 80 (0.22%) and Global AllCap (0.23%)

However HSBC have another Adventurous fund (HSBC World selection Adventurous) which is much more expensive at 0.71% so it depends which "HSBC Adventurous" fund the OP is referring to.  Same with the dynamic funds

jimjames

Hopingforthesimplelife said:

Thanks both - interesting…. with stocks being mostly flat I thought the general consensus might be use up the cash then sell a small portion of the shares. 

That would be my plan. I'd keep enough cash for emergency fund (£10-20k?) and then use the rest plus S&S to clear it. I probably wouldn't use all the cash up.

Linton

Shares are for the long term, cash for the short term. What was your long term objective in investing in your funds? Is it still a valid objective? Is the allocation to each fund still appropriate?  If so keep the funds.

What was your reason for holding so much cash? Is the reason still relevant? If so keep the cash.

If this leads to you not having the money to reduce your mortgage perhaps you need to rethink your priorities and plans. Then allocate your money accordingly.

if your current allocations are not based on plans or objectives then tbh it doesn’t matter what you do. But the worst thing to do is to make major changes to your financial arrangements each time the weather changes.

Hopingforthesimplelife

Linton said:

Shares are for the long term, cash for the short term. What was your long term objective in investing in your funds? Is it still a valid objective? Is the allocation to each fund still appropriate?  If so keep the funds.

What was your reason for holding so much cash? Is the reason still relevant? If so keep the cash.

If this leads to you not having the money to reduce your mortgage perhaps you need to rethink your priorities and plans. Then allocate your money accordingly.

if your current allocations are not based on plans or objectives then tbh it doesn’t matter what you do. But the worst thing to do is to make major changes to your financial arrangements each time the weather changes.

Thanks good qu’s. Ironically I started investing about 8 years ago as part of a 15-20 year plan to pay off the mortgage so in that sense it’s simple.

however we have a large chunk of cash  as we were about to do a large kitchen renovation.

what has changed is we started our mortgage in 2010 so have only ever known low mortgage rates, which has changed relatively quickly. 

I guess it comes down to being mortgage free or kitchen and so I suppose I prefer the former (wife might disagree!)

its then trying to work out what’s the most ‘efficient’ way of funding it.