Am I doing the right thing - Lindsell Train Global Equity
Discussion
Your question can never be answered at this stage, however if you are interested in the correct way, to know how your investment has performed, simply do the following;
Note the FTSE All-Share Index number on the day you invest.
Note again when you wish to judge the performance, say 31 Dec 2018.
Then just compare that percentage change with the performance change of your chosen fund.
Ignore any mumbo jumbo they give you about, 'in comparison with our benchmark', that is just misleading voodoo.
Pure overseas market investments will obviously differ, but the FTSE A-S is the usual overall target for UK investors.
Putting in an ISA is usually a wise move. No extra tax on dividends, or Capital Gains Tax (over the allowance) if things go well for you in the future.
Edited by Jon39 on Wednesday 13th September 17:03
Jon39 said:
Your question can never be answered at this stage, however if you are interested in the correct way, to know how your investment has performed, simply do the following;
Note the FTSE All-Share Index number on the day you invest.
Note again when you wish to judge the performance, say 31 Dec 2018.
Then just compare that percentage change with the performance change of your chosen fund.
Ignore any mumbo jumbo they give you about, 'in comparison with our benchmark', that is just misleading voodoo.
Pure overseas market investments will obviously differ, but the FTSE A-S is the usual overall target for UK investors.
But the FTSE All share would be a poor representative benchmark for a Global equity portfolio!Note the FTSE All-Share Index number on the day you invest.
Note again when you wish to judge the performance, say 31 Dec 2018.
Then just compare that percentage change with the performance change of your chosen fund.
Ignore any mumbo jumbo they give you about, 'in comparison with our benchmark', that is just misleading voodoo.
Pure overseas market investments will obviously differ, but the FTSE A-S is the usual overall target for UK investors.
sidicks said:
But the FTSE All share would be a poor representative benchmark for a Global equity portfolio!
Yes I agree with your technical point.You could use the FTSE 100 Index, because most of those UK companies are trading worldwide, but in reality there is usually not very much difference in the annual performance of those two indices.
My main point though, was that very few fund managers can consistantly beat the FTSE All-Share Index, so that is a good one for investors to use as a target. It even understates which helps, because funds will receive income and that is not included in the Index.
I think that is the simplest way to check how things are progressing.
Trying to monitor every individual country investment - well no fund investor would bother trying.
Edited by Jon39 on Wednesday 13th September 17:15
Jon39 said:
Yes I agree with your technical point.
You could use the FTSE 100 Index, because most of those UK companies are trading worldwide, but in reality there is usually not very much difference in the annual performance of those two indices.
My main point though, was that very few fund managers can consistantly beat the FTSE All-Share Index, so that is a good one for investors to use as a target. It even understates which helps, because funds will receive income and that is not included in the Index.
Surely any competent investor would use the FTSE100 or FTSE All Share total return index i.e. with dividends reinvested!You could use the FTSE 100 Index, because most of those UK companies are trading worldwide, but in reality there is usually not very much difference in the annual performance of those two indices.
My main point though, was that very few fund managers can consistantly beat the FTSE All-Share Index, so that is a good one for investors to use as a target. It even understates which helps, because funds will receive income and that is not included in the Index.
jon49 said:
I think that is the simplest way to check how things are progressing.
Trying to monitor every individual country investment - well no fund investor would bother trying
If you are investing in a global equity strategy then the aporopriate benchmark would be a global equity benchmark.Trying to monitor every individual country investment - well no fund investor would bother trying
Edited by sidicks on Wednesday 13th September 22:44
Jon39 said:
sidicks said:
But the FTSE All share would be a poor representative benchmark for a Global equity portfolio!
Yes I agree with your technical point.You could use the FTSE 100 Index, because most of those UK companies are trading worldwide, but in reality there is usually not very much difference in the annual performance of those two indices.
My main point though, was that very few fund managers can consistantly beat the FTSE All-Share Index, so that is a good one for investors to use as a target. It even understates which helps, because funds will receive income and that is not included in the Index.
I think that is the simplest way to check how things are progressing.
Trying to monitor every individual country investment - well no fund investor would bother trying.
Edited by Jon39 on Wednesday 13th September 17:15
I do have my SIPP split over a number of funds though, all H&L wealth 150 with similar growth and cost as Lindsell Train.
98elise said:
Lindsell Train Global Equity has had pretty good consistent gains. I have a chunk of my SIPP with them , and it's done well.
Pleased to hear 'it's done well', but what does that mean?
What were the percentage results for each of the last five calendar years?
The target figures that I refered to previously were;
2012 + 10.63%
2013 + 16.64%
2014 - 2.13%
2015 - 2.50%
2016 + 12.45%
I think that makes it +27.79% over those five years, plus the income received.
Edited by Jon39 on Wednesday 13th September 21:37
Jon39 said:
Pleased to hear 'it's done well', but what does that mean?
What were the percentage results for each of the last five calendar years?
The target figures that I refered to previously were;
2012 + 10.63%
2013 + 16.64%
2014 - 2.13%
2015 - 2.50%
2016 + 12.45%
I think that makes it +27.79% over those five years, plus the income received.
Edited by Jon39 on Wednesday 13th September 21:37
sidicks said:
But a comparison with a Global Equity fund is somewhat meaningless given the different risk profile etc!
Very much agreed. I was just showing the difference between total return index and capital index in reply to Jon39.What made you look at putting it all into that fund? A suggestion from a friend? Historic returns? Your own research?
Answer Sidicks' questions and that will help answer your own question. Also do some research on funds, both active and passive, to see if it's a fund for you.
snabzter said:
Very much agreed. I was just showing the difference between total return index and capital index in reply to Jon39.
snabzter said:
What made you look at putting it all into that fund? A suggestion from a friend? Historic returns? Your own research?
Answer Sidicks' questions and that will help answer your own question. Also do some research on funds, both active and passive, to see if it's a fund for you.
Answer Sidicks' questions and that will help answer your own question. Also do some research on funds, both active and passive, to see if it's a fund for you.
Side kicks :-
What are you trying to achieve? :- Be nice to see some growth rather than a measly 1% in a cash Isa.
Over what time period? :- Happy for it to be tied up 5 years.
How much can you afford to lose? :- Could realistically afford to loose the lot. It's been hard earned and I'd be gutted if i did.
What else do you invest in? :- My other half has similar amount in Fundsmith.
Back ground to it. We've both had these amounts £130,000 between us tied up in cash Isa's doing bugged all over the last few years. Be nice if we could see a bit more growth. 5-10 % would be lovely.
Thanks again for you all trying to advise. It's appreciated.
Mark
What are you trying to achieve? :- Be nice to see some growth rather than a measly 1% in a cash Isa.
Over what time period? :- Happy for it to be tied up 5 years.
How much can you afford to lose? :- Could realistically afford to loose the lot. It's been hard earned and I'd be gutted if i did.
What else do you invest in? :- My other half has similar amount in Fundsmith.
Back ground to it. We've both had these amounts £130,000 between us tied up in cash Isa's doing bugged all over the last few years. Be nice if we could see a bit more growth. 5-10 % would be lovely.
Thanks again for you all trying to advise. It's appreciated.
Mark
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