Best to drip feed ISA allowance into a fund?

[hallion]

I have just deposited £15k cash into a Charles Stanley Direct ISA before the end of this FY. I want to invest in the Vanguard LS 60 fund. I was thinking of adding £2500 a month to the fund over the next 6 months and then add another £15k over the last 6 months for the next FY. Does that sound like a good plan or could I maybe add the £15k over the next 3 months, on a weekly transfer? I know it all depends on how the fund performs but would be grateful for some advice.

Thanks!

PK

[Simpo Two]

'Now is an ideal time to invest Sir'

Though seriously, for those not staring at a trading screen all day with poised finger, it's called pound-cost averaging and saves you having to worry about it. There's little point in looking back at graphs and thinking 'what if?'

My completely uninformed view is that markets will wobble as the election nears, then firm up afterwards when we know which collection of idjits will be polishing the handrails.

Professional finance bods are welcome to disagree

[Pheo]

http://monevator.com/lump-sum-investing-versus-dri...

http://monevator.com/know-your-own-risk-tolerance/

[Ginge R]

Simpo Two said:

'Now is an ideal time to invest Sir'

Though seriously, for those not staring at a trading screen all day with poised finger, it's called pound-cost averaging and saves you having to worry about it. There's little point in looking back at graphs and thinking 'what if?'

My completely uninformed view is that markets will wobble as the election nears, then firm up afterwards when we know which collection of idjits will be polishing the handrails.

Professional finance bods are welcome to disagree

You make a good point - it's a wise man who realises and recognises the moment he's at a transition change point. The longer I advise and the older I get, I realise - the currency you start with is money and the one you end with is time, and pound cost averaging becomes pound cost ravaging.

Another truism.. everyone makes money when Labour gets in and spends like there's no tomorrow. Alas, tomorrow eventually arrives.

[Ginge R]

hallion said:

I have just deposited £15k cash into a Charles Stanley Direct ISA before the end of this FY. I want to invest in the Vanguard LS 60 fund. I was thinking of adding £2500 a month to the fund over the next 6 months and then add another £15k over the last 6 months for the next FY. Does that sound like a good plan or could I maybe add the £15k over the next 3 months, on a weekly transfer? I know it all depends on how the fund performs but would be grateful for some advice.

Thanks!

PK

Depends on your view of the market. VLS60 is *quite* punchy so that would suggest you aren't averse to volatility?

[Simpo Two]

Ginge R said:

The longer I advise and the older I get, I realise - the currency you start with is money and the one you end with is time

I was rather hopng it would be more money...

[Ginge R]

Which'd be nice. The one issue which does have potential for more than just the wobbles is the Scottish situation. As we draw closer, and if it seems that the SNP might extract a high price for political support, that could create a genuine and longer lasting change in market trajectory and velocity. That's a nice way of saying 'Jesus Christ!!'.

[hallion]

I'm not too averse but planning on this being a long term investment of 10 - 15 years helps with the risk. I've just bought £5k of the VLS 60 fund. I now think I might wait until after the election and do another £5k in the VLS 60 and the remaining £5k in Woodford CF. I have an ISA from a couple of years ago with Fundsmith and it has performed well however I feel more comfortable diversifying into other funds. I might look at Fundsmith again for this years allowance.