discretionary fund manager or stocks and shares isa's

STAR1Y

Hi, we have an amount of 60k that we have put away in a managed fund stocks and shares isa's (low risk) in the last 2 financial years.  We were happy to leave these for 4 or 5 years as these funds will help us with a short fall when I retire in 4 years time. i have been on a recent pre retirement course with a follow up from a DMF.  Their fees seem quite expensive.  Would a DMF be worth it for the fairly small sum of money to invest?  Im getting bogged down with it all

Linton

£60k really is too small a pot to worry about getting a well crafted portfolio.  Any benefit in £ terms is likely to be insufficient to justify the  cost of advice or to interest many IFAs.

In any case 4-5 years is too short a time period for using a managed fund, well-crafted for your needs or off the shelf. It is possible that you could end up with less money than when you started. 10+ years would be, more appropriate. I suggest you keep to cash savings or something close to cash.

STAR1Y

Thank you Linton

Albermarle

STAR1Y said:

Hi, we have an amount of 60k that we have put away in a managed fund stocks and shares isa's (low risk) in the last 2 financial years.  We were happy to leave these for 4 or 5 years as these funds will help us with a short fall when I retire in 4 years time. i have been on a recent pre retirement course with a follow up from a DMF.  Their fees seem quite expensive.  Would a DMF be worth it for the fairly small sum of money to invest?  Im getting bogged down with it all

Going too low risk can be a risk in itself. Most low risk funds have performed significantly worse than higher risk funds in the last couple of years.
Ok your time scale is relatively short in investing terms, so maybe keeping some of it in cash might be an idea.