Vanguard investor

hayabusaman0

evening all, my son has just told me about vanguard, he's saying he's getting 15% return on the £250 he's invested, this sounds too good to be true?

InvesterJones

Hi, what do you know about investing? Do you know what equities are, and understand risk?

Barkin

Vanguard is just a platform - and not necessarily the cheapest - that allows a choice of different Vanguard specific (not whole of market) investments.

The value of those investments can, generally speaking - go down as well as up...

What's he invested in ?

GeoffTF

https://forums.moneysavingexpert.com/discussion/6679023/vanguard-investor

Vanguard's global equity index tracker VWRP has returned 23.43% over the last year, and the same will be true (plus or minus a tiny bit) of its competitors. Nobody knows what will happen next year. It could go up more, or it could lose 80%. Equities have greatly outperformed cash in the long term in all the markets where that has happened. Some other markets have been total wipe outs. There are no guarantees with equities, but they usually outperform cash if you wait long enough.

dunstonh

https://forums.moneysavingexpert.com/discussion/6679023/vanguard-investor

15% over what period?

15% could be very good. It could be very poor. Plus, it won't be 15% a year because investments don't work that way.

You would expect investments to beat cash over the long term, and in most years they tend to be cash but every few years, they will have a nothing year or a negative year. So you need to average out the good years, the bad years, and the nothing years.

Albermarle

Martin Lewis: A beginner's guide to investing