What is a 'good' return ?

GenX0212

This is the current performance of my DC fund, approx 2/3 in Diversified Growth fund and 1/3 Equity: 



These are LifeSight managed funds as part of my Company scheme and apart from selecting the funds and the % split I don't have to do anything else. In terms of fees/charges then the last 12 months have cost me approx £450

Taking the 12 month view I am very happy with the performance although the last 6 months has dropped off somewhat. How does it compare to your own funds performances?

eskbanker

GenX0212 said:

What is a 'good' return ?

One that meets your objectives while being compatible with your attitude to risk....

GenX0212

eskbanker said:

GenX0212 said:

What is a 'good' return ?

One that meets your objectives while being compatible with your attitude to risk....

Medium....

artyboy

GenX0212 said:

eskbanker said:

GenX0212 said:

What is a 'good' return ?

One that meets your objectives while being compatible with your attitude to risk....

Medium....

I think a Medium could come in useful sometimes...

dunstonh

What is a 'good' return ?

Why 1 year?   Look at it over 20 years and you are closer to something more useful to look at.

Medium....

What is your definition of medium?

GenX0212

dunstonh said:

What is a 'good' return ?

Why 1 year?   Look at it over 20 years and you are closer to something more useful to look at.

Medium....

What is your definition of medium?

Why 1 yr? Just as an idle comparison against how others schemes are currently performing. My pot has only been with LifeSight for 18 months after the Company changed provider.

Risk attitude: Moderately adventurous I.e. wiling to take some risk (but not experienced enough to do it myself). 

Bostonerimus1

It’s a meaningless question.

35 years ago I would have accepted 7% average annual return from my funds. I’ve managed 9%, but if I’d invested it all in Apple I’d have made far more. So what is “good”? Bottomline is you need an objective and if your investments mean that you meet that objective then they are good enough. You should be asking this question relative to your own investment goals, not someone else’s.

Hoenir

The value of investments can fall and as well as rise. Different asset classes, markets will perform best and worst over any given period of time. 

How long before you intend accessing the money? How much are comfortable with losing?  Are one of a number of questions that you need to consider at regular intervals. 

When markets do turn downwards sharply. They can easily rip the shirt off your back. Be uncomfortable places to be. 

dunstonh

 Just as an idle comparison against how others schemes are currently performing.

Schemes don't perform. investments perform.

In the last year, the best area has been US equity.  So, anything high in US equity would have done best.    However, that doesnt mean it will be best every year.  For the first decade of this millennium, US equity underperformed most other countries/regions.       

Risk attitude: Moderately adventurous I.e. wiling to take some risk (but not experienced enough to do it myself). 

These are words but they don't say much.   This is not a criticism but one persons low risk is another persons high risk.   How much of your value would you be prepared to lose in a loss period (noting that some loss periods go on for 2-3 years)?

Everyone wants the high returns in positive periods until that negative period comes along.