FTSE100 tracker
Discussion
daddy cool said:
Nice one. I like hearing your updates, and your ups and down tend to match what happens on mine. Its almost 2 years since I started a S&S ISA with Fidelity, and have maxed out my allowance both years. Unlike you (and because im an absolute noob at this) I ended up with 12 funds, all spread across different geographies and whatnot. After an initial rise (where I felt like I was the next Warren Buffet) ive spent most of the last year seeing almost all of them decline... but I kept my nerve, kept drip feeding, and consequently buying cheap stock, and pretty much since the general election result they have all gone up like a rocket!
As of today, my stats are £40k invested, current value £44,448 - a return of 11.12%, which isn't bad I guess.
My single best is a Legal & General Pharmaceutical trust - £4.3K invested, current value £5.3K - a return of 20.1%
Im not expecting to retire early or anything, but it seems to be doing better than just keeping it in a savings account, and its fun to keep an eye on every couple of days.
Very similar to me. It's quite hard when it goes negative to not only not panic about losing more and leave it in, but accept that you're actually getting more for your money and keep buying! As of today, my stats are £40k invested, current value £44,448 - a return of 11.12%, which isn't bad I guess.
My single best is a Legal & General Pharmaceutical trust - £4.3K invested, current value £5.3K - a return of 20.1%
Im not expecting to retire early or anything, but it seems to be doing better than just keeping it in a savings account, and its fun to keep an eye on every couple of days.
BobToc said:
Ari said:
Another little update.
FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Does that include dividends as well?FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Mopey said:
I have just gone for the life strategy 80% one as I don’t know what I’m doing enough and it is done for you. Hopefully it’s all gravy post brexit and with this virus!!
You do not need a great deal of financial acumen to put a regular contribution in a passive index tracker. This is the purpose of the vehicle i.e. an easy method to access stocks without individual stock picking. However, as others have commented, a large dollop of investing is the psychological aspect - it's all gravy when the markets seemingly go up, however it becomes a different proposition when the market drops precipitously.There are risk to passive index trackers, namely are they helping maintaining the frothiness in markets because investors add money irrespective of whether companies are good, bad or indifferent, and whether this effect is magnified now that passive index trackers account for approx 40% of all funds.
That aside, you should understand some financial basics so that you are psychologically prepared when the markets enter a downward trend i.e. do not panic, and continue to make your regular contribution. You should also have a 10 year plus mindset - preferably decades.
Ari said:
Another little update.
FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Two weeks later, £673.41 up, rate of return is 6.56%.FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
So much for the 'Brexit bounce'!
Mopey said:
Yep it’s gone through now.
The life strategy I appreciate I can just leave.
I also got a VWRL for my son for his JISA- now that seems to pay dividends? Can I leave that too or do I need to do something with it?
Learning!!
I’ve a few Vanguard funds, I like them but think you’ve identified the 2 problems I see with them:The life strategy I appreciate I can just leave.
I also got a VWRL for my son for his JISA- now that seems to pay dividends? Can I leave that too or do I need to do something with it?
Learning!!
- they take longer to transact
- they aren’t as voluminous (probably not the right term) so are higher value for a single share, if automatic dividend reinvestment is available it would take a pretty sizeable pot to get a large enough dividend to reinvest
SJfW said:
- they aren’t as voluminous (probably not the right term) so are higher value for a single share, if automatic dividend reinvestment is available it would take a pretty sizeable pot to get a large enough dividend to reinvest
If you wanted to reinvest dividends, then you’d just buy the accumulation fund, rather than the income fund... That’s the whole point of there being separate accumulation and dividend funds, accumulation keeps the dividend payout in the fund and prices accordingly, and income pays it out
Greshamst said:
SJfW said:
- they aren’t as voluminous (probably not the right term) so are higher value for a single share, if automatic dividend reinvestment is available it would take a pretty sizeable pot to get a large enough dividend to reinvest
If you wanted to reinvest dividends, then you’d just buy the accumulation fund, rather than the income fund... That’s the whole point of there being separate accumulation and dividend funds, accumulation keeps the dividend payout in the fund and prices accordingly, and income pays it out
Ari said:
Unsurprisingly, if you've been following the financial news, I've gone negative!
Rate of return -2.59%
Investments returned me -£274.06
Think long term...
Wondering if I should put a bit extra in whilst it's low?
Ive been waiting for your post!Rate of return -2.59%
Investments returned me -£274.06
Think long term...
Wondering if I should put a bit extra in whilst it's low?
Ive gone from 11% up a week or so back, to 3.6% up today and I expect that to continue falling... my only regret is that I have maxed my ISA allowance for this year, otherwise i'd do some buying too...
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