Vanguard Stocks and shares ISA?Life Strategy Blended LOW RISK Fund .. Poor Performance

JohnWinder

‘Also, if you can get 6% in a savings account why isn't a low risk fund doing better?‘

I don’t think we need to know the answer to that. You’ll have seen from history, via portfoliovisualizer, that there are periods when it has happened and thus that it could happen again. Even if there weren’t, it still could. It would only matter ‘why’, apart from intellectual interest, if the why allowed us to predict what would come next so that we might profit from it. Despite Nobel prizes awarded for economic research and everyone below that trying, no one has found a reliable strategy (or you’d be able to invest in the fund). Forget it.

‘I could sell and make a loss but put them into 6% fixed savings or 5% ISA and make something back.

Might work out well, if you know when to buy back in. But do read Morningstar’s ‘mind the gap’ research: funds return more than the average investor in them gets because, amongst other reasons, folk do as you’re suggesting. It’s not a winning strategy overall.

..but with current world events I wonder if we are ever going to get out of this down turn.‘

I don’t think things are so dark. Do look at portfoiliovisualizer and see what happened during periods like WW2, Cuban missile crisis, assassination of John Lenon, end of Tesco selling Bakewell tarts.

AlanP_2

OP - it's probably best if you edit your post and remove your name.

MEM62

thomastt3722 said:

We have had these Investments since 2020 and at first they gave an adequate return,In 2023 we have seen a loss in both investments,with no sign of any improvement.Whist we understand that these are considered long term investments,there comes a point when we must make a decision as to whether we should cut our losses and move our money elsewhere.

There is, but being only three years in it's way too early.  Investing is a long game and three years is nothing in the overall scheme of things.  And if you were to move your money elsewhere, what would you do with it?          

thomastt3722 said:

The Fund Managers are still taking their management fees even though the investments were chosen as low risk.Does anyone else have any views or advice on this way of thought? 

Low risk funds have not performed as well as high risk funds in recent times.  Sometimes that just the way it works out.  

Aminatidi

I recently switched from active to passive.

One nice thing about being in LifeStategy or an index is you can hopefully take a bit of comfort that you haven't invested in the "wrong thing" and if LifeStrategy is doing badly it's likely that most other stuff is too.

So perhaps the question is less about LifeStrategy and more about (respectfully) if you appreciate investments will go down as well as up and perhaps whether you've got your appetite for risk right - and you might have but bonds have gone through arguably a once in a lifetime event recently.

Bostonerimus1

Aminatidi said:

I recently switched from active to passive.

One nice thing about being in LifeStategy or an index is you can hopefully take a bit of comfort that you haven't invested in the "wrong thing" and if LifeStrategy is doing badly it's likely that most other stuff is too.

So perhaps the question is less about LifeStrategy and more about (respectfully) if you appreciate investments will go down as well as up and perhaps whether you've got your appetite for risk right - and you might have but bonds have gone through arguably a once in a lifetime event recently.

The beauty of automatic rebalancing multi-asset funds like LifeStrategy is that they give you a diverse portfolio and also implement some basic asset management for a reasonable price. For people who want a bit more control then a few index funds are an inexpensive solution which can be particularly useful for some retirement drawdown strategies as you can choose which asset classes and dividends to sell or take according to market conditions.