Timing selling a fund

Alexland

dannybbb said:

It might go the other way but I’m happy  with lower returns and more stability. @alexland could you give me an example of this kind of fund? 

I was suggesting a multi fund portfolio for example you could continue to hold a % of your account valuation in the current fund for global equities and pick a bond fund to put a % of your money. That way its easier to adjust the weightings in future as you only need to trade the bit that is moving.

dannybbb

i had thought about leaving some in the balanced, losing the dynamic and replacing with cautious. I dont know much about bond funds  - could you reccomend any reading or a good way to make a start? still concerned about selling the dynamic find but sounds like theres nothing i can do to prevent selling at a very different price to what i see when i hit sell

Stargunner

dannybbb said:

i had thought about leaving some in the balanced, losing the dynamic and replacing with cautious. I dont know much about bond funds  - could you reccomend any reading or a good way to make a start? still concerned about selling the dynamic find but sounds like theres nothing i can do to prevent selling at a very different price to what i see when i hit sell

You can get an idea of what price you would be selling at. 

From 12pm last Friday the US stock markets went slightly lower. The US futures market are over 1% lower, so if you sold today the price that you get is likely to be lower than last Friday’s price. The £ to $ currency price can also have an effect, but that is quite stable since last Friday. 

j_netprofit

What's your horizon? If it's >5yrs just sell it. 

Assume you're putting the money into something far less diverse/niche...? 

Alexland

dannybbb said:

i had thought about leaving some in the balanced, losing the dynamic and replacing with cautious. I dont know much about bond funds  - could you reccomend any reading or a good way to make a start? still concerned about selling the dynamic find but sounds like theres nothing i can do to prevent selling at a very different price to what i see when i hit sell

You could consider a 2 fund portfolio of equities and bonds which would enable you to adjust the risk level in future with less money out of the market as you only need to uninvest the % you are moving. Just consider the impact of any trade fees your platform may charge. Often single asset class funds are cheaper than multi asset funds.

https://pensioncraft.com/how-to-build-two-stock-portfolio/

https://monevator.com/best-global-tracker-funds/

https://monevator.com/how-to-choose-a-bond-fund/
https://monevator.com/best-bond-funds/

I find this is useful when for example taking advantage of a market crash to increase my % equities without needing to sell down the crashed equities (and risk missing any recovery) just some bonds to buy more crashed equities. I also prefer to hold ETFs where possible so I don't have days waiting to see how it turned out.

dannybbb

@Alexland thanks for taking the time to post those links - ill do some reading

dannybbb

@j_netprofit 5-10 years . just thinking less equities at the moment

Andy7856

If you are selling it all, what I would do is use the free credit to sell a portion over a course of 3 months, and use the free monthly investment process to move into your new fund.  Its impossible to time the markets but this would allow you to average out things over the course of 3 months and not worry too much about missing best prices.