scotish mortgage trust

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joebob
joebob Posts: 451 Forumite
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I have a lump sum of £6k to invest and £200 -£300 a month to invest as well. I am not averse to risk,and have been looking at scottish mortgage trust which has good returns and comes in top 3 of most recommended investment trusts. Also been looking at vanguard lifestrategy 60%, any thoughts on which one to go with.
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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    It depends what "not averse to risk" really means to you. If you really mean "if the value of my investment drops by 70% or more, and then takes a decade to recover, wouldn't really mind, and would carry on buying £200-300 of shares in it each month" then you might be happy having Scottish Mortgage as your only investment. They allocate investors' money into a highly concentrated portfolio of equity investment into companies, and at the moment have a strong focus on overseas technology companies (eg US and Chinese internet firms). So it is likely to be quite volatile in terms of its value and returns from year to year.

    The average UK investor has a portfolio much closer to what Vanguard Lifestrategy 60 has to offer, rather than Scottish Mortgage. VLS60 has only 60% in equities, the rest in bonds, and only three quarters of the equities being listed on foreign stockmarkets with the rest in UK (weighted heavily to FTSE100).

    The VLS60 will swing up and down in value but not to the same extremes as SM. It was designed to be someone's whole portfolio (or the core of it) while SM was not. But left for 20-30 years you would probably expect SM to produce greater growth as it is all equities - and equities typically have greater term growth than bonds.
  • joebob
    joebob Posts: 451 Forumite
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    I am looking at keeping the lump sum in for 10 years so i expect it to go up and down over the years. I have my own portfolio of ftse shares and isas so was looking for something else to add to it. looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?
  • eskbanker
    eskbanker Posts: 31,047 Forumite
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    joebob wrote: »
    I have my own portfolio of ftse shares and isas so was looking for something else to add to it.
    Probably best to give some more information about your existing portfolio rather than drip-feeding - what are you currently invested in and how have you structured this portfolio?
    joebob wrote: »
    looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?
    Depends on which platform(s) you're using and their charging structure....
  • george4064
    george4064 Posts: 2,811 Forumite
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    joebob wrote: »
    I am looking at keeping the lump sum in for 10 years so i expect it to go up and down over the years. I have my own portfolio of ftse shares and isas so was looking for something else to add to it. looking at the VLS60 if i was to invest £200-300 each month would i be charged to buy them each month ?

    Depends on the platform you use and their dealing charges.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2021 - #027 £15,268 (76%)
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    I am not averse to risk

    Good job considering your investment choice.
    Also been looking at vanguard lifestrategy 60%,

    Why? It isnt even close in comparison to SMT.
    any thoughts on which one to go with.

    Neither at this stage as you dont appear to have nailed down your risk profile. Until you do, you are just making p'ing in the wind and hoping for the best.

    Look at your risk profile (tolerance, behaviour and understanding) and then pick your investments.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • joebob
    joebob Posts: 451 Forumite
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    eskbanker wrote: »
    Probably best to give some more information about your existing portfolio rather than drip-feeding - what are you currently invested in and how have you structured this portfolio?

    Depends on which platform(s) you're using and their charging structure....

    Got £15.000 in isas
    £24.000 in bp, taylor wimpey, marshalls ,itv,lloyds, barclays, Iag.

    with td direct
  • joebob
    joebob Posts: 451 Forumite
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    dunstonh wrote: »
    Good job considering your investment choice.



    Why? It isnt even close in comparison to SMT.


    Neither at this stage as you dont appear to have nailed down your risk profile. Until you do, you are just making p'ing in the wind and hoping for the best.

    Look at your risk profile (tolerance, behaviour and understanding) and then pick your investments.

    Not close in comparison in what way ?

    My risk profile is moderately adventurous according to an IFA
  • jimjames
    jimjames Posts: 17,619 Forumite
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    edited 10 October 2017 at 12:19PM
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    joebob wrote: »
    Not close in comparison in what way ?

    In the same way that a Ferrari isn't very close in comparison to a Ford Ka for getting from A to B. They are still both cars though.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • joebob
    joebob Posts: 451 Forumite
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    jimjames wrote: »
    In the same way that a Ferrari isn't very close in comparison to a Ford Ka for getting from A to B. They are still both cars though.

    Not with you could you expand.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    Just on risk alone, TrustNet's risk score for the FTSE100 is 100 and cash is 0. Using that metric SMT is 149 and VLS is 62. That's quite a difference
    I'd strongly suggest you do some (any) research before parting with your cash
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