Scottish Widow Balanced Growth Portfolio Shareclass A Accumulation

wheresmydoshat

okay last question !

if i was to simply move over to a HL multi managed fund the charges would be greater than if i picked myself but would they still be better than what i am being charged now ?

i just don't feel i can pick my own funds with such little knowledge.

meester

wheresmydoshat wrote: »

okay last question !

if i was to simply move over to a HL multi managed fund the charges would be greater than if i picked myself but would they still be better than what i am being charged now ?

i just don't feel i can pick my own funds with such little knowledge.

The charges may well be higher, but the funds are being managed by talented managers and are likely to outperform. The charges are 1% higher than the underlying funds, or about £140/year for you.

wheresmydoshat

i do like the look of the managed funds, although i'm wondering whether now is the best time to be changing ?

meester

wheresmydoshat wrote: »

i do like the look of the managed funds, although i'm wondering whether now is the best time to be changing ?

Never a good idea to leave money in an underperforming fund.

wheresmydoshat

so SW balanced growth vs. HL balanced, no competition, just go for it ?!

dunstonh

wheresmydoshat wrote: »

so SW balanced growth vs. HL balanced, no competition, just go for it ?!

Forgive me but this highlights the risk of going DIY.

You are not happy with the SW fund so you are picking a fund with higher risk, higher charges and a worse recent performance record. Scottish Widows fund isnt very good but HL's fund is not the answer. HLs fund is 79.3% equities which is far too high for your risk profile (based only on what you have posted).

IMO, you are getting out of the frying pan into the fire.

wheresmydoshat

this is what i was thinking.

but choosing my own funds with so little knowledge isn't the answer, so what is ??

dunstonh

but choosing my own funds with so little knowledge isn't the answer, so what is ??

Your options are IFA or DIY. If you feel DIY is not the answer then IFA should be. However, like any job you dont do yourself and get someone to do for you it will be a little more expensive. However, it is worth noting that the difference on £14,000 is £35 a year due to the fact the IFA will not rebate the trail on an advice case.

meester

dunstonh wrote: »

Forgive me but this highlights the risk of going DIY.

You are not happy with the SW fund so you are picking a fund with higher risk, higher charges and a worse recent performance record. Scottish Widows fund isnt very good but HL's fund is not the answer. HLs fund is 79.3% equities which is far too high for your risk profile (based only on what you have posted).

IMO, you are getting out of the frying pan into the fire.

Not sure you're right.

The problem with the SW fund is LACK of risk-taking. Hence holders are not making any profit in good times. It is up 13.7% in 3 years. The HL fund is up 23.6% in that period, and 78.9% over 5 years.

I'm not sure the OP is complaining about volatility as much as just complete lack of return. It is money set aside for investment, and it has done nothing in 3 years. If you had held the HL BM, you would see 20%+ growth in good years, so when things fall, there's the hope to go back into profit. Holding SW must depressing, it looks like things will never recover.

The SW fund is never going to show a good return.

The HL FoF is not the best in its sector, but it has to be a better place for the money than SW.

EdInvestor

wheresmydoshat wrote: »

this is what i was thinking.

but choosing my own funds with so little knowledge isn't the answer, so what is ??

I'm afraid there's no easy way out.It's either

a)Improve your knowledge (and save money)

b)Hunt for a decent IFA in your area who is good at investment (not a lot of them) and pay more money.

Have a look here:

http://www.h-l.co.uk/news_and_expert_views/news_and_investment_ideas.hl

Most of the funds mentioned on HL's site are quality ones.If you choose a selection and come back here people will put you straight if you've made any glaring mistakes.Avoid their 'manager of manager' and 'fund of fund' choices.They are designed for lazy investors who can't be bothered making any effort.They have high charges and their performance is nothing special.