£5000 Long term investment with minimal intervention.
Discussion
Obviously the correct answer to this depends on your individual risk profile/ goals/ age etc but the answer to these types of questions often result in the answer of...
- Vanguard lifestrategy index fund mix (aka lifestrategy80 is 80% equities and 20% bonds/safer fixed income, they also have lifestrategy20/ 40/ 60/ 100
- if you want less Uk focus, then vanguard global all cap is a popular more global index fund
Vanguard tend to be the cheapest fee wise for index funds. Good to put the money away and forget about if not needed for a long time.
Managed funds will eat up quite a lot of any profit when investing lower amounts.
- Vanguard lifestrategy index fund mix (aka lifestrategy80 is 80% equities and 20% bonds/safer fixed income, they also have lifestrategy20/ 40/ 60/ 100
- if you want less Uk focus, then vanguard global all cap is a popular more global index fund
Vanguard tend to be the cheapest fee wise for index funds. Good to put the money away and forget about if not needed for a long time.
Managed funds will eat up quite a lot of any profit when investing lower amounts.
It's an alternative to holding in a straight forward savings account. My wife is VERY risk averse having heard tales of folk losing money (2008 etc) and oft prefers to listen to them than me.....(I've an S&S ISA and a SIPP with a mix of funds, in both UK and various areas around the world and single stock both FTSE100 & smaller companies)
It'll be held within my HL S&S ISA,
It'll be held within my HL S&S ISA,
Skyedriver said:
It's an alternative to holding in a straight forward savings account. My wife is VERY risk averse having heard tales of folk losing money (2008 etc) and oft prefers to listen to them than me.....(I've an S&S ISA and a SIPP with a mix of funds, in both UK and various areas around the world and single stock both FTSE100 & smaller companies)
It'll be held within my HL S&S ISA,
If you’re taking a very risk averse approach then I would just go with one of Vanguard’s LifeStrategy 40 or 60 funds (i.e. a 40% or 60% equity allocation). I think that’s needlessly conservative (I’m pretty close to 100% equity), but if your benchmark is a savings account and you want a similar risk profile then this is kind of where you end up.It'll be held within my HL S&S ISA,
Skyedriver said:
For someone putting say £5000 into an ISA, not wanting to keep a daily eye on it so no single stock but a fund.
(I'm in a few myself but this is different)
a) Managed or Tracker?
b) Global, Euro, UK or?
You really need focus on the purpose of the investment? Your risk profile is very important but, importantly the investment time period is important as time in the market can greatly reduce the associated risk.(I'm in a few myself but this is different)
a) Managed or Tracker?
b) Global, Euro, UK or?
So, is it for a purpose (retirement, repay the mortgage, expensive holiday, just to invest (no reason)).
If you have a short timescale for the money, 5 years(ish) then you probably need to reduce volatility associated with the investment (this basically means holding a degree of bonds to counteract equities). If you have a long investment period or are happy to possibly lose some money then a predominant equity exposure is probably more appropriate.
So, more info please
b
hstewie said:
hstewie said:Skyedriver said:
Long term hold, retention of capital value plus some dividend/increase
I'm not sure a global tracker is my first instinct when seeing this.How would you feel if you woke up tomorrow and it was down 20-30% for example?
I'm virtually all in Equity myself except for a bit in Corporate Bonds etc and know the risks/pitfalls etc
She needs something that is going to be relatively stable if rather boring.
I've looked at a few of the Vanguard options (hadn't really looked at their products before hadn't realised how many funds they had going)and there seems to be something there that may fit the bill thanks
Edited by Skyedriver on Thursday 11th March 08:25
Skyedriver said:
Like I watched RDSB & BP for instance drop 50% last year.
I'm virtually all in Equity myself except for a bit in Corporate Bonds etc and know the risks/pitfalls etc
She needs something that is going to be relatively stable if rather boring.
I've looked at a few of the Vanguard options (hadn't really looked at their products before hadn't realised how many funds they had going)and there seems to be something there that may fit the bill thanks
If you know you're comfortable with that sort of volatility fair enough I'm virtually all in Equity myself except for a bit in Corporate Bonds etc and know the risks/pitfalls etc
She needs something that is going to be relatively stable if rather boring.
I've looked at a few of the Vanguard options (hadn't really looked at their products before hadn't realised how many funds they had going)and there seems to be something there that may fit the bill thanks
Edited by Skyedriver on Thursday 11th March 08:25
I see lots of people who want "something better than a savings account" and next thing you know a world tracker is being suggested.
Pet hate of mine.
The cash is in the ISA, looked at the Vanguard and L&G funds mainly. ( I Have monies in the likes of Lindsell Train and Fundsmith and a variety of UK/US/Euro/Asia/ Global myself)
For this "safer" option I'm trying to decide between UK, US or Global. Think Global is safest but I've done very well in US/India/China funds myself but these would appear riskier. UK has the potential to grow big but we seem to have ongoing problems with the EU
For this "safer" option I'm trying to decide between UK, US or Global. Think Global is safest but I've done very well in US/India/China funds myself but these would appear riskier. UK has the potential to grow big but we seem to have ongoing problems with the EU
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