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Fund performance with Financial Advisor only gained 5.74% in five and a half years.
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Some helpful comments here. Yes I did believe over 5 years was a fair time to make an assessment. Clearly I need to think longer term. I've looked at my fund portfolio and I see 18 funds made up of 35% identified as UK funds, 22% identified as Global and the remaining funds spread around the world including the UK and the US.
To make my position clear though, I am only trying to ascertain whether a return of 5.74% is reasonable when comparing with other balanced portfolios. Of course I am exposed to the real world but so are the other funds. I am not looking for a quick buck but I did anticipate slow and sustained steady growth with a bumpy road at times. I've seen my portfolio lose 20% in a week and vice versa, seen it steadily rise to recover.
I could ask the question another way. Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.0 -
cleverdic said:Some helpful comments here. Yes I did believe over 5 years was a fair time to make an assessment. Clearly I need to think longer term. I've looked at my fund portfolio and I see 18 funds made up of 35% identified as UK funds, 22% identified as Global and the remaining funds spread around the world including the UK and the US.
To make my position clear though, I am only trying to ascertain whether a return of 5.74% is reasonable when comparing with other balanced portfolios. Of course I am exposed to the real world but so are the other funds. I am not looking for a quick buck but I did anticipate slow and sustained steady growth with a bumpy road at times. I've seen my portfolio lose 20% in a week and vice versa, seen it steadily rise to recover.
I could ask the question another way. Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.
To answer your final question - no I would not be satisfied with 5.74% cumulative return over 5 years, but I'm not you and my portfolio is designed to be inexpensive and hold a large percentage of equities. Bonds have had a bad couple of years thanks to interest rate increases and Liz Truss so if you have a lot of them your portfolio will have suffered.
I'll also say that any advisor who comes up with 18 funds is "having a laugh". There's no need for that many.And so we beat on, boats against the current, borne back ceaselessly into the past.1 -
Bostonerimus1 said:cleverdic said:Some helpful comments here. Yes I did believe over 5 years was a fair time to make an assessment. Clearly I need to think longer term. I've looked at my fund portfolio and I see 18 funds made up of 35% identified as UK funds, 22% identified as Global and the remaining funds spread around the world including the UK and the US.
To make my position clear though, I am only trying to ascertain whether a return of 5.74% is reasonable when comparing with other balanced portfolios. Of course I am exposed to the real world but so are the other funds. I am not looking for a quick buck but I did anticipate slow and sustained steady growth with a bumpy road at times. I've seen my portfolio lose 20% in a week and vice versa, seen it steadily rise to recover.
I could ask the question another way. Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.
To answer your final question - no I would not be satisfied with 5.74% cumulative return over 5 years, but I'm not you and my portfolio is designed to be inexpensive and hold a large percentage of equities. Bonds have had a bad couple of years thanks to interest rate increases and Liz Truss so if you have a lot of them your portfolio will have suffered.
I'll also say that any advisor who comes up with 18 funds is "having a laugh". There's no need for that many."We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein3 -
I think it is perfectly reasonable to look at how an investment is doing after five years and ask "is that about right for the general market performance?". There have been some rough years in that period but your investment has still underperformed.
I don't know what the brief was that you gave to the advisor but I would observe that your advisor has made as much money as you have from the investments.
So, based on the limited information you have provided, I'd be looking at dumping the advisor and self-infesting in one or two of the mainstream funds that are regularly discussed on here. Unless your current funds are very focussed then you definitely don't need 18 of them. Start by looking at passive global trackers. It's easier and cheaper than ever to invest yourself and save all those advisor fees. And there is plenty of help on here and other forums. Just ask.1 -
I could ask the question another way. Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.
The key question here is what you told the IFA when the portfolio was set up. Did you say for example that you wanted low risk funds as you have a low risk tolerance. Or did you say you were looking for growth even if that came with some risks. If it was the former, than the low return over 5 years would be more understandable.
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You've paid your IFA more than you've made?
This is why fees matter.4 -
Clive_Woody said:Bostonerimus1 said:cleverdic said:Some helpful comments here. Yes I did believe over 5 years was a fair time to make an assessment. Clearly I need to think longer term. I've looked at my fund portfolio and I see 18 funds made up of 35% identified as UK funds, 22% identified as Global and the remaining funds spread around the world including the UK and the US.
To make my position clear though, I am only trying to ascertain whether a return of 5.74% is reasonable when comparing with other balanced portfolios. Of course I am exposed to the real world but so are the other funds. I am not looking for a quick buck but I did anticipate slow and sustained steady growth with a bumpy road at times. I've seen my portfolio lose 20% in a week and vice versa, seen it steadily rise to recover.
I could ask the question another way. Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.
To answer your final question - no I would not be satisfied with 5.74% cumulative return over 5 years, but I'm not you and my portfolio is designed to be inexpensive and hold a large percentage of equities. Bonds have had a bad couple of years thanks to interest rate increases and Liz Truss so if you have a lot of them your portfolio will have suffered.
I'll also say that any advisor who comes up with 18 funds is "having a laugh". There's no need for that many.And so we beat on, boats against the current, borne back ceaselessly into the past.1 -
Some helpful comments here. Yes I did believe over 5 years was a fair time to make an assessment. Clearly I need to think longer term. I've looked at my fund portfolio and I see 18 funds made up of 35% identified as UK funds, 22% identified as Global and the remaining funds spread around the world including the UK and the US.In most 5 year periods you would be in profit but some 5 year periods are negative. You invested in 2018. 2018 was a negative year (it fell in quarter 4). 2020 had the third biggest fall in the last 25 years. 2022 was negative and one asset class had its worst performance in over 100 years.
You have invested and suffered Brexit, a global pandemic, a war in europe, The winding down of QE, an energy crisis and inflation shock. In any 10 year period you may expect one of those. Not all of them in less than 5 years.Would anyone commenting here be comfortable in a 5.74% return over 5.5 years and is that a realistic return over that period considering the impact of certain world events.Yes. How much really depends on your asset classes. Those that are heavier in gilts and bonds suffered far more greatly than those in equities. However, tech funds fall 40% over late 21/22.
And for reference, the 10 year period from 2000 to 2009 was negative. So, negative periods can be longer than 5 years.
BTW, some of the comments in earlier posts reflect poor knowledge or bias. So, be on guard.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.7 -
Aminatidi said:You've paid your IFA more than you've made?
This is why fees matter.
They only seem to have referred to a Financial Advisor, being independent hasn't been mentioned.4 -
dunstonh said:.
BTW, some of the comments in earlier posts reflect poor knowledge or bias. So, be on guard.
Everyone has a bias, even you. It's what makes us human.0
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