Favourite fund for beginner

topyam

What's everyone's favourite fund?
Is there a more popular one?
Thinking for somebody wanting to start out in investing and looking to invest in a diversified fund

DRS1

Probably VWRP though ACWI might be more popular - ie cheaper.

But that is not to say now is a good time to buy either of them - we could be starting the down slope of the roller coaster.

Alexland

topyam said:

What's everyone's favourite fund?
Is there a more popular one?
Thinking for somebody wanting to start out in investing and looking to invest in a diversified fund

Only invest if you don't need to access the money for the next 5-7 years preferably longer to ride out any crashes that might occur.

You may wish to consider the Vanguard LifeStrategy and HSBC Global Strategy fund series which are low cost multi asset funds containing a blend of both stock market equities and fixed income bonds available at various risk levels.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

The medium balanced risk ones might drop around 25% in a bad crash.

If you pick the higher risk ones they might drop around 50% and take years to recover in a bad market crash similar to the VWRP though ACWI global tracker index ETFs mentioned above which only contain stock market equities with no fixed income blend to reduce volatility.

These funds need to be held on a platform and the choice of platform will depend on a number of factors such as the type of account you want, investment choices you want access to, account value, trade pattern, if you want good customer service, etc.

tigerspill

I started with Vanguard VLS 40.  Then as I started to better understand investing I moved more into Global Equity  Index trackers and some VLS20 for bonds.
I have done very well in the last few years and am now wanting better security so have built a savings and ILG ladder covering ten years.  The remainder being in equity funds and some MA funds (VLS and HSBC).

But it really depends on your age and objective.  Ig you are looking 10+ years out, then a global equity tracker?

El_Torro

Agreed with Alexland, can’t go too wrong with a multi asset fund.

Of the multi asset funds my favourite on paper is Fidelity Multi Asset Allocator, my favourite in practice is HSBC Global Strategy. The reason for this discrepancy is because the HSBC funds consistently outperform Fidelity and other multi asset funds. I’m not sure why, might be because the HSBC funds rely more on large US companies. When the crash comes the HSBC funds might be hit harder than other multi asset funds. 

Alexland

El_Torro said:

Of the multi asset funds my favourite on paper is Fidelity Multi Asset Allocator, my favourite in practice is HSBC Global Strategy. The reason for this discrepancy is because the HSBC funds consistently outperform Fidelity and other multi asset funds. I’m not sure why, might be because the HSBC funds rely more on large US companies. When the crash comes the HSBC funds might be hit harder than other multi asset funds. 

I think for a total beginner wanting to make modest regular contributions into a new ISA, LISA or SIPP and starting from zero account balance then I'd pick a Vanguard LifeStrategy fund and hold it on Dodl for 0.15% ongoing min £1 pm which is a lower minimum than holding at Vanguard Investor where you can also get most of those account types.

I've not used Dodl personally but AJ Bell are a good company and I'm a happy long term customer of their main platform which is more suited to investors with larger accounts. People who use Dodl on the forum have always seemed happy.

Weirdly Dodl have categorised VLS in their Themed investment section probably because they would prefer you invested in their own-brand 50% more expensive multi asset funds.

https://dodl.co.uk/investments/themed (then click 'All-in-one')

Bostonerimus1

There are hundreds, if not thousands, of funds that will be right for a beginner. The key is that you understand why you are using a particular type of fund and that you keep costs down. So never buy a fund just because it's doing well right now or on someone's recommendation without understanding the basics of how investment funds work and what you want to achieve.

jaybeetoo

Several decades ago I started regular (monthly) investing with Foreign & Colonial Investment Trust (FCIT).  It’s done well for me.

HedgehogRulez

Etherium..

LHW99

Many (many) years ago I started regular investments into the Invesco Income fund. It did very nicely (don't mention the manager!)