Choose a UK fund.

talexuser · 6 September 2017 at 7:58PM

Say you wanted to decide the split between UK and non UK investments yourself and were just starting out with say 5 grand not to be touched for at least 10 years, and accept the risks involved.

You've decided to put 3k into Vanguard FTSE Dev World ex UK Eq Inc Acc and want to put 2k into something UK (and realise the imbalance about the relative GDPs etc).

You don't like an All Share or 100 tracker because performance has been pretty lacklustre. What would you consider as something mainstream and not in the further realms of risk?

A young relative is starting on this journey and already decided the above and I'm not sure if any of my active UK funds are really suitable suggestions for them. Maybe a good IT like Finsbury Growth and Income?

A_T · 6 September 2017 at 8:17PM

Mid-Cap/FTSE 250 tracker ?

IanSt · 7 September 2017 at 11:26AM

Any particular reason why you want the 2k to be in the UK?

If I had my time over again then I'd be looking for my starting investments to be overseas. If brexit goes well then job opportunities etc will be good and the investments from salary will dwarf the 2k. If brexit goes bad then £ is likely to fall, so overseas funds get an added boost.

I'd be thinking about a global smaller company tracker if it were me.

Jeems · 7 September 2017 at 12:04PM

IanSt wrote: »

Any particular reason why you want the 2k to be in the UK?

If I had my time over again then I'd be looking for my starting investments to be overseas. If brexit goes well then job opportunities etc will be good and the investments from salary will dwarf the 2k. If brexit goes bad then £ is likely to fall, so overseas funds get an added boost.

I'd be thinking about a global smaller company tracker if it were me.

People talk about home bias, but is it really needed if confidence in the long term outlook of the home country isn't very high? (to the individual I mean)

kidmugsy · 7 September 2017 at 12:06PM

IanSt wrote: »

If I had my time over again then I'd be looking for my starting investments to be overseas.

That's my feeling too. If your present or future house is in the UK, your pensions are going to be in the UK, your future earnings are going to be in the UK, there's a good case for your investable money being elsewhere. Probably the big question is how much to have in North America, how much in the Far East/Pacific.

JohnRo · 7 September 2017 at 12:57PM

If this £5K is to be purely an equity based investment then why not just let the the global marketplace itself decide your allocations, VWRL.

AnotherJoe · 7 September 2017 at 3:56PM

I'd revisit the underlying assumption and go 100% global, possibly ex UK or at most with a "natural" UK % which will be 6 or 7%.

talexuser · 7 September 2017 at 5:38PM

Hmm, I would say Lifestrategy 100% at their age as a fund and forget, but they think that a split will payoff one way or the other if Brexit goes well or pearshaped for the £.

I'm loath to recommend any of my active funds because I like to punt on outperformance so don't wish to burden them with a wrong decision, whereas after 25 years of investing if a fund or two dip and need changing it's not the end of the world for me.

dividendhero · 8 September 2017 at 9:16PM

IanSt wrote: »

If I had my time over again then I'd be looking for my starting investments to be overseas..

It seems it's only politicians on the right of the Tory party who're talking up the UK post Brexit, can't recall anyone who's actually in the export business backing up these claims.

Clearly there will be be industries in the UK that'll thrive in future (eg whisky and sectors of the pharma industry), but these will be only niches and not enough to support 60m people in the manner we've become accustomed - therefore I'm looking to move even more of my money overseas and regret not having shifted the lot out before the referendum:(

Choose a UK fund.

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