Funds opinion please

Ivkoto

Hi everyone,

Would you choose this fund ⬇️ over a S&P500 tracker for 10+ years ? I compare the both, because the magnificent seven are the top holdings in them.

I know it is more concentrated, but at the same time more diversified, because around 21.5% is not in US stocks. 

Is it more riskier and what percentage of drop would be expected in a stock crash?

Thank you

masonic

Ivkoto said:
I know it is more concentrated, but at the same time more diversified, because around 21.5% is not in US stocks.

The top 10 holdings of the Islamic fund make up 43% of the fund and are all listed in the US. Whereas the top 10 holdings of the S&P500 make up only 32% of the index. The Islamic fund excludes certain sectors, most notably most financials. The holdings in both are large multinational companies, whose prospects are not going to be significantly influenced by which stockmarket they happen to be listed on. So I would suggest a S&P500 tracker is more diversified in this instance, as it is diversified among a greater number of companies and industry sectors. Overall loss potential of two index funds will not be significantly different, but one may do better than the other in a crash depending on the economic circumstances surrounding the crash.

I wouldn't say either would be suitable as someone's only holding.

Albermarle

The 0.75% charge is significantly higher than a S&P 500, or global equity index tracker.

NoviceInvestor1

I’d choose neither. 

Are there religious grounds that mean you can’t consider a standard global tracker?

Ivkoto

NoviceInvestor1 said:

I’d choose neither. 

Are there religious grounds that mean you can’t consider a standard global tracker?

I have no many options and this fund will be  representing no more than 30% of my portfolio.

InvesterJones

What are your requirements?

Ivkoto

InvesterJones said:

What are your requirements?

Maximum growth over the next 10 to 15 years with contributions every month of around £1500 - £1800.
I can live with very big drops, so I like taking risks.

ColdIron

Ivkoto said:

NoviceInvestor1 said:

I’d choose neither. 

Are there religious grounds that mean you can’t consider a standard global tracker?

I have no many options and this fund will be  representing no more than 30% of my portfolio.

How do either of these fit in with the other 70%? Presumably you have an allocation to the US already, probably S&P 500 companies. Would this overweight that allocation? Are you light in that geographic area?

Hard to say which one (if either) without knowing what the other 70% is

Ivkoto

NoviceInvestor1 said:

I’d choose neither. 

Are there religious grounds that mean you can’t consider a standard global tracker?

These are the other equity funds available ⬇️

masonic

That is a rubbish selection. So you have to choose between either ESG or Islamic.

Ivkoto

masonic said:

That is a rubbish selection. So you have to choose between either ESG or Islamic.

This is what the company offer plus bonds, gilts, cash and lifestyle funds, which I am not interested at. I want 100% equity fund