Sharia index tracker versus global (ethical) equity in workplace pension (USS)

FIREmenow

As I said, I would not switch all of my investments to this fund. So if I was in a pension that only allowed one fund I would choose something else. 

If you want to attempt timing the market of course that's your choice. I replied because it doesn't sit well with me that someone has put all of their pension in this fund based on comments on a thread I started. I've said my piece now, best of luck.

BlackKnightMonty

FIREmenow said:

As I said, I would not switch all of my investments to this fund. So if I was in a pension that only allowed one fund I would choose something else. 

If you want to attempt timing the market of course that's your choice. I replied because it doesn't sit well with me that someone has put all of their pension in this fund based on comments on a thread I started. I've said my piece now, best of luck.

You can only choose one NEST fund.

Which other fund would you pick?

dunstonh

Is it a massive bubble or technology 5.0?
No one knows. I repeat, no one knows.

Very true.  However, the size of the tech bubble (if its one) is now comparable to the level before the original dot.com crash.

The original dot.com crash came along because anything tech-related had grown, and there was a realisation that most of the companies didn't have tech that was going to work and they had no assets and no market.   A lot of wishes and promises that resulted in zero.

If AI takes off, then tech may have reached a new level. If not, then tech will likely fall back to its previous state.  

dunstonh

BlackKnightMonty said:

FIREmenow said:

As I said, I would not switch all of my investments to this fund. So if I was in a pension that only allowed one fund I would choose something else. 

If you want to attempt timing the market of course that's your choice. I replied because it doesn't sit well with me that someone has put all of their pension in this fund based on comments on a thread I started. I've said my piece now, best of luck.

You can only choose one NEST fund.

Which other fund would you pick?

I would pick the higher-risk fund because it's lower risk than the Sharia fund. I went through the original dot.com crash and saw people lose 90% of their investments. Many never recovered as they didn't have the time before retirement, which left them financially hard up.

That past performance has already happened.   If you were in it in 2019, then that would be fantastic for you.  You have shaved off 5-6 years of what it would normally take to double.  Now think about protecting it.

BlackKnightMonty

dunstonh said:

Is it a massive bubble or technology 5.0?
No one knows. I repeat, no one knows.

Very true.  However, the size of the tech bubble (if its one) is now comparable to the level before the original dot.com crash.

The original dot.com crash came along because anything tech-related had grown, and there was a realisation that most of the companies didn't have tech that was going to work and they had no assets and no market.   A lot of wishes and promises that resulted in zero.

If AI takes off, then tech may have reached a new level. If not, then tech will likely fall back to its previous state.  

Dot.com was a very immature tech market. It’s very different today. Microsoft, Apple, Nvidia, Google, Meta aren’t a bunch of college grads any more.

BlackKnightMonty

dunstonh said:

BlackKnightMonty said:

FIREmenow said:

As I said, I would not switch all of my investments to this fund. So if I was in a pension that only allowed one fund I would choose something else. 

If you want to attempt timing the market of course that's your choice. I replied because it doesn't sit well with me that someone has put all of their pension in this fund based on comments on a thread I started. I've said my piece now, best of luck.

You can only choose one NEST fund.

Which other fund would you pick?

I would pick the higher-risk fund because it's lower risk than the Sharia fund. I went through the original dot.com crash and saw people lose 90% of their investments. Many never recovered as they didn't have the time before retirement, which left them financially hard up.

That past performance has already happened.   If you were in it in 2019, then that would be fantastic for you.  You have shaved off 5-6 years of what it would normally take to double.  Now think about protecting it.

I can switch funds for free within a week. So if/when I feel the need to do so; I will.

I don’t feel the need right now. There’s another 6 months of growth ahead, maybe more. That’s my read on it.

slenderkitten

Yeah my fund went up £200 in one week when the 2040 fund did nothing, a waste of time, i'll keep an eye out for it and if i need to, i will switch to another one.

BlackKnightMonty

slenderkitten said:

Yeah my fund went up £200 in one week when the 2040 fund did nothing, a waste of time, i'll keep an eye out for it and if i need to, i will switch to another one.

It will move both up and down; but it is still trending upwards. If I get uncomfortable I will let you know.

https://markets.ft.com/data/funds/tearsheet/performance?s=GB00BFZNFH05:GBP

https://app.powerbi.com/view?r=eyJrIjoiODVlYjQ1YjItYzI0NS00OGM1LTkzYTMtNmUwM2U2MTg2OTZjIiwidCI6IjBhNzJmMDMyLTFkMDktNDU3ZS1iYTAyLWU1NjU2OTU0ODZjZiJ9

dunstonh

slenderkitten said:

Yeah my fund went up £200 in one week when the 2040 fund did nothing, a waste of time, i'll keep an eye out for it and if i need to, i will switch to another one.

What about other weeks when the returns are the other way around?

To get an idea of markets, you need to look at the last 25 years as a sensible period.   Not one week in isolation.

BlackKnightMonty

dunstonh said:

slenderkitten said:

Yeah my fund went up £200 in one week when the 2040 fund did nothing, a waste of time, i'll keep an eye out for it and if i need to, i will switch to another one.

What about other weeks when the returns are the other way around?

To get an idea of markets, you need to look at the last 25 years as a sensible period.   Not one week in isolation.

Dinosaurs were still walking the earth in tech 25 years ago.