Fund advice

[Budflicker]

I'm very new to investing and have recently collated a few old company pensions into one SIPP with HL and invested into two funds;

HL MULTI-MANAGER SPECIAL SITUATIONS TRUST CLASS A - ACCUMULATION (GBP)

LF WOODFORD EQUITY INCOME CLASS Z - ACCUMULATION (GBP)

I invested around 15k into each of these funds in December last year and am now £800 or so worse off than when i first invested.

I haven't been paying any more in to the SIPP but I do save £1k a month in to an S+S ISA with HSBC which seems to have performed a good deal better in a similar time frame.

What's gone wrong?

Did i choose two duff funds, should i stick with them longer term and keep my fingers crossed, or cash out of these funds and re-invest elsewhere?

Any helpful advice would be greatly appreciated.

[bitchstewie]

8 months isn't enough time to read anything much into things.

Most equity funds are down anything between 2-4% just over the last couple of weeks.

[Simpo Two]

Welcome to investing! At least you didn't pay an IFA to lose it for you.

Stuff goes up as well as down, but did you look at charges when deciding funds? High charges can wipe out small gains.

[troika]

Difficult to tell but everything seems to be a bit hammered over the last week or so. 8 months is not a long time so I’d give it a while yet before switching. I’ve got a chunk to place across my favourite funds but will leave in cash for a moment I think.

[croyde]

Invested in a Woodford medical fund about 2 years ago. Only 3k but it dropped quickly to 2.5k and has stayed there ever since.

Thankfully my other funds are up 20% over the same period.

[xeny]

Budflicker said:

Any helpful advice would be greatly appreciated.

Think of this as advice in the form of introspection:

What made you pick those funds? Do those factors still hold true. If you can't give a good reason I'd suggest starting by reading http://monevator.com/why-a-total-world-equity-inde... and then decide if/how you want to deviate from that baseline.

[oldaudi]

The other thing to remember here is that by the looks of it you put £15k into one fund in one go. I would suggest that often it’s better to drip feed money into a fund rather than put a lump some in one go. This often allows you to ride out and fluctuations in the price of the fund. Also in my view 8 months is a very small time frame, what you want to be doing now if you can is continue to drip feed into your fund choices so you can buy more as the price as dropped. Obviously the risk is that it will continue to drop but over a 7 to 10 year time frame you should be in a good position.

[ringram]

funds are also expensive on H&L due to platform charges.
Better off putting new ££ into ETF's etc