Investment funds
Discussion
As a retail investor all you can really do is be aware of the expense ratios.
Before diving into Target date funds which I'm sure will become as popular there as here(US) check the holdings because they have become "funds of funds" which means the expense ratios are layered. There is often a small break because the FM can invest in the Institution equivs with lower ratios, but it's still a double whammy.
Maybe you can save a little by managing your own bond component, using a sep bond fund. Age relevant.
I use Morningstar, the portfolio manager will break down all your fund holdings to individual share holdings, showing proportions of Large, med, small cap, Countries and regions, like wise bond holdings into duration etc.
By creating a portfolio of just one fund, it will break that fund down into very understandable English even for me. Far superior to a prospectus, and a hell of a lot faster.
I like it because it will pull the bond components from Allocation funds and give you an accurate picture of exactly what you have.
It will also give you a figure for your total expenses....I got quite a shock.
I'm not sure if there is a UK Morningstar, but I'm sure there must be a website that does similar with UK Funds.
ETA The portfolio manager is only available with premier membership, forgot that, as I get it for free.
Before diving into Target date funds which I'm sure will become as popular there as here(US) check the holdings because they have become "funds of funds" which means the expense ratios are layered. There is often a small break because the FM can invest in the Institution equivs with lower ratios, but it's still a double whammy.
Maybe you can save a little by managing your own bond component, using a sep bond fund. Age relevant.
I use Morningstar, the portfolio manager will break down all your fund holdings to individual share holdings, showing proportions of Large, med, small cap, Countries and regions, like wise bond holdings into duration etc.
By creating a portfolio of just one fund, it will break that fund down into very understandable English even for me. Far superior to a prospectus, and a hell of a lot faster.
I like it because it will pull the bond components from Allocation funds and give you an accurate picture of exactly what you have.
It will also give you a figure for your total expenses....I got quite a shock.
I'm not sure if there is a UK Morningstar, but I'm sure there must be a website that does similar with UK Funds.
ETA The portfolio manager is only available with premier membership, forgot that, as I get it for free.
Edited by jeff m2 on Thursday 26th May 07:37
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