lower risk funds - and/or stop loss?

InvesterJones

On-the-coast said:

when i read the fund data sheet i noticed there was a 0.18 fund charge.   So when interest rates were very low that would make a difference. But in most cases the fund seems to outperform the market (just), which is a little suprising.
P.s. I assume that 0.18% charge is not something i pay directly, but is just reflected in the net growth rate.
so all i have to pay is a £1.50 dealing charge each time i buy/sell that fund.
As far as i can see I'm adding a tiny bit of risk... but getting most of the benefit of cash savings.
And i understand that interest rates are likely heading down at this stage.

Royal London short term money market fund Y acc has a fund fee of 0.10%, this, and any fund transactional costs, will be reflected in a lower growth rather than charged separately. Then you have any platform charges on top which are charged separately but can be paid in a number of ways, sometimes including selling some of the fund - we don't know which platform you are on/considering or the amount invested to be able to estimate these.

jimjames

Linton said:

Stop loss policies are not guaranteed to work - if prices drop quickly there may not be time to catch the trigger point.

I'm not sure stop loss would work with funds when they are forward priced anyway so you don't know price until it's too late. Does any platform offer that service for funds not just shares?

JG1A

I use the Royal London short term MMF in my SIPP as a cash fund. I wouldnt use it for cash savings outside a SIPP because the returns from cash are similar and you can fix cash savings.

Linton

jimjames said:

Linton said:

Stop loss policies are not guaranteed to work - if prices drop quickly there may not be time to catch the trigger point.

I'm not sure stop loss would work with funds when they are forward priced anyway so you don't know price until it's too late. Does any platform offer that service for funds not just shares?

True but it sounded to me that the OPwould like a fund where the fund manager operates the stop loss.

Hoenir

On-the-coast said:

But in most cases the fund seems to outperform the market (just), which is a little suprising.

That's the nature of taking an element of risk. Selling a fund which simply matches the return on deposited overnight cash would be a hard sell. Without a higher return there'd be nothing to pay the fund management fees out of.