Chip have increased rates again! My Vanguard Inv Fds Ftse Gbl All Cap fund not growing

london21

cloud_dog said:

london21 said:

I am happy i switched away from the Santander esaver account. 

Chip have increased their interest rate to 4.51%

I have some funds which are not growing but guess it's long term. 

VANGUARD INV FDS FTSE GBL ALL CAP INDEX GBP

But the VGAC returned, what 47% over the last 5 years.  Your savings account probably a teeny tiny bit less.

I don't understand. 

The savings account is more instant but the funds long term to see the returns. 

masonic

london21 said:

cloud_dog said:

london21 said:

I am happy i switched away from the Santander esaver account. 

Chip have increased their interest rate to 4.51%

I have some funds which are not growing but guess it's long term. 

VANGUARD INV FDS FTSE GBL ALL CAP INDEX GBP

But the VGAC returned, what 47% over the last 5 years.  Your savings account probably a teeny tiny bit less.

I don't understand. 

The savings account is more instant but the funds long term to see the returns.

If you are lucky you'll see better returns from funds over the short term too, but you'd be unwise to invest money you will be spending in the short term.

Linton

london21 said:

cloud_dog said:

london21 said:

I am happy i switched away from the Santander esaver account. 

Chip have increased their interest rate to 4.51%

I have some funds which are not growing but guess it's long term. 

VANGUARD INV FDS FTSE GBL ALL CAP INDEX GBP

But the VGAC returned, what 47% over the last 5 years.  Your savings account probably a teeny tiny bit less.

I don't understand. 

The savings account is more instant but the funds long term to see the returns. 

It is just that share based funds are volatile in the short/medium term but the general longterm trend is higher than savings accounts.  You just happened to buy at a bad time.  But in 5 years time these minor wobbles will make very little difference.