FTSE100 tracker
Discussion
I would diversify and look to have some global exposure. I currently hold 12 funds in my ISA account as I think this gives me a much broader portfolio and allows me to have 2/3 higher risk funds within the portfolio without being too risky overall.
In terms of UK large companies I prefer a FTSE 250 tracker as this has a better historical performance over the longer term and again is more diversified by the fact there are 250 companies in the index and there isn't so much weighting towards the top 10 or so as there is in the 100 index.
In terms of UK large companies I prefer a FTSE 250 tracker as this has a better historical performance over the longer term and again is more diversified by the fact there are 250 companies in the index and there isn't so much weighting towards the top 10 or so as there is in the 100 index.
Ari I found these useful for what it's worth http://www.kroijer.com
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hstewie said:
hstewie said: Ari I found these useful for what it's worth http://www.kroijer.com
Just watched the whole series - very interesting and mirrors my thoughts exactly, other than I have gone with the FTSE100 instead of a world tracker. But maybe that is something I should seriously think about. I guess instinctively a FTSE100 tracker feels (relatively) reassuring, big British companies. But he makes good points about the world tracker.
The one I started initially, not opened any others yet - FTSE 100 Index Unit Trust Accumulation fund.
Totally get that it will yoyo up and down, hopefully more up than down. But it is ironic that other than one day early on when it dipped by something like 0.02%, it's made steadily in the month I have had it, and the actual day I buy in with thousands instead of hundreds is the day it goes into reverse!
I guess the fact that it's been going up so steadily should have made me think it can't last - but then if you spend your life trying to second guess these things you never do anything.
Totally get that it will yoyo up and down, hopefully more up than down. But it is ironic that other than one day early on when it dipped by something like 0.02%, it's made steadily in the month I have had it, and the actual day I buy in with thousands instead of hundreds is the day it goes into reverse!
I guess the fact that it's been going up so steadily should have made me think it can't last - but then if you spend your life trying to second guess these things you never do anything.
Not sure whether to continue updating this thread or not as hard to gauge whether it's interesting for people (obviously it is to me, but whether anyone else is interested in how this goes I don't know).
But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
Ari said:
Not sure whether to continue updating this thread or not as hard to gauge whether it's interesting for people (obviously it is to me, but whether anyone else is interested in how this goes I don't know).
But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
Don't, keep it updated as I find it interesting as a "normal person" simply trying to work out how to make their money work a bit harder for the medium to long term future.But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
I'm especially interested what you'd have in "cash" if you cashed out right now i.e. is it real profit after any fees?
Ari said:
Not sure whether to continue updating this thread or not as hard to gauge whether it's interesting for people (obviously it is to me, but whether anyone else is interested in how this goes I don't know).
But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
Aren't you basically just updating the latest FTSE rise and falls?But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
bhstewie said:
hstewie said: Don't, keep it updated as I find it interesting as a "normal person" simply trying to work out how to make their money work a bit harder for the medium to long term future.
I'm especially interested what you'd have in "cash" if you cashed out right now i.e. is it real profit after any fees?
No problem, will do. And that is exactly what I am, so am trying to understand the simplest way of investing, which I think this probably is.I'm especially interested what you'd have in "cash" if you cashed out right now i.e. is it real profit after any fees?
To answer your question - there is no entry charge or exit charge, so no fees for converting it into cash. The only charge is a 0.06% 'ongoing charge', which (I believe) is annual (so having £10,000 invested for one year will cost £6). This is the real beauty of investing this way, it takes the gamble out of trying to find a super successful fund manager that can outperform the market, and reduces to a bare minimum the costs involved in investing (I've no idea how much managed funds cost, perhaps someone can tell us?)
More info here: https://www.vanguardinvestor.co.uk/investments/van...
sidicks said:
Aren't you basically just updating the latest FTSE rise and falls?
Quite possibly, but I guess the difference is I'm turning those bald figures into what that means relative to amounts invested. If I hear on the news that the FTSE100 is up (or down!) xx points, that doesn't translate to real money very well for me, and maybe not for other people.
sidicks said:
Ari said:
Not sure whether to continue updating this thread or not as hard to gauge whether it's interesting for people (obviously it is to me, but whether anyone else is interested in how this goes I don't know).
But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
Aren't you basically just updating the latest FTSE rise and falls?But anyway, as of the end of this week, it rallied after that initial loss and I've ended up £48.60 up, with a personal rate of return since the account opened of +5.36%.
Happy to drop in the odd update if anyone wishes me to, otherwise I'll let the thread die. Been a very interesting 'toe in the water' for me though, and have appreciated everyone's thoughts and advice.
Ari said:
Quite possibly, but I guess the difference is I'm turning those bald figures into what that means relative to amounts invested.
If I hear on the news that the FTSE100 is up (or down!) xx points, that doesn't translate to real money very well for me, and maybe not for other people.
If I hear on the news that the FTSE100 is up (or down!) xx points, that doesn't translate to real money very well for me, and maybe not for other people.
Ari said:
No problem, will do. And that is exactly what I am, so am trying to understand the simplest way of investing, which I think this probably is.
To answer your question - there is no entry charge or exit charge, so no fees for converting it into cash. The only charge is a 0.06% 'ongoing charge', which (I believe) is annual (so having £10,000 invested for one year will cost £6). This is the real beauty of investing this way, it takes the gamble out of trying to find a super successful fund manager that can outperform the market, and reduces to a bare minimum the costs involved in investing (I've no idea how much managed funds cost, perhaps someone can tell us?)
More info here: https://www.vanguardinvestor.co.uk/investments/van...
Quite and I'm also interested in the psychological angle.To answer your question - there is no entry charge or exit charge, so no fees for converting it into cash. The only charge is a 0.06% 'ongoing charge', which (I believe) is annual (so having £10,000 invested for one year will cost £6). This is the real beauty of investing this way, it takes the gamble out of trying to find a super successful fund manager that can outperform the market, and reduces to a bare minimum the costs involved in investing (I've no idea how much managed funds cost, perhaps someone can tell us?)
More info here: https://www.vanguardinvestor.co.uk/investments/van...
I don't mean to sound like a b
d but if you wake up tomorrow and you're a grand down it's interesting to know how you'll react.I'm not saying that because I'm an a
hole by the way, I'm saying it because risk appetite is something I'm debating with myself at the moment 
Totally agree. Classic example was having a few hundred quid in and seeing it go up and imagining what I would have 'earned' had it been a few thousand. Logic told me that if it was riding high then it was probably not a good time to put a hefty chunk in, but I cracked and put £5K in only for it to drop instantly. I knew it could happen and I also know full well that it's only a real loss when either it's all gone (somehow) or you cash out, but it didn't make me feel like a canny investor.
If it were to dive (say during or after Brexit), will I be able to look at my losses and think 'good time to buy' and stick another £5K in? If it goes up more will I be able to resist putting more in at what's probably a bad time to buy?
I'm bandying around these £5K figures like it's nothing, but to be clear, it's big chunks of my meagre savings.
If it were to dive (say during or after Brexit), will I be able to look at my losses and think 'good time to buy' and stick another £5K in? If it goes up more will I be able to resist putting more in at what's probably a bad time to buy?
I'm bandying around these £5K figures like it's nothing, but to be clear, it's big chunks of my meagre savings.
Ari said:
What do actively managed funds cost, anyone know?
Do you mean an actively managed equity fund (i.e. one that aims to outperform a specific market index) or a managed fund (which typically allocates across a variety of different asset classes (aiming to diversify exposure and outperform a composite benchmark)?Gassing Station | Finance | Top of Page | What's New | My Stuff