Passive funds-Which one?

[xyz123]

Hi, I am looking to sorting out my ISAs and looking at long term investment. Having rewdbthe forum blow are the names tat generally get mentioned. In general all are same as in they are index funds but have their different nuances. Before I finalise one or two of the following, I wanted to ask Have I missed any other ones that I should consider?

1. Vanguard life strategy
2. VWRL
3 VWRP
4. Fund Smith equity
5.L&G multi index

Thanks

[bitchstewie]

They're not all index funds (Fundsmith absolutely is not an index fund).

What's your rough goal?

[xyz123]

bhstewie said:

They're not all index funds (Fundsmith absolutely is not an index fund).

What's your rough goal?

Thanks for your reply and pointing out re fundsmith. I just made a list and was planning to look into the differences and you saved me some time.

My goal is to invest money for long term (7-10 years plus) and get better returns than cash sitting in the bank.

Thanks.

[bitchstewie]

There are lots of threads in the Finance forum so I'd start with looking over the last few pages and reading some of the longest most suitable looking threads.

You don't mention the amounts and whether it's a lump sum or starting from nothing but I'd perhaps start by considering your appetite for volatility.

For example if you put £1000 in the bank you know that when you go and look at your bank account there will be £1000 there.

If you put £1000 in an investment and you came to look at what it was worth what sort of value might make you panic and want to sell it?

Give it a lot of thought because whatever you think the answer is it's probably different when it's real money and the answer is likely to help with what sort of investments you could look into

[Jon39]

Many PHers here prefer to hand their money to fund management firms.
Perhaps there is an assumption that they must be professional, know what they are doing and can make money grow.
Remember that their business income (incentive) are fees.

I like running things myself. Business investment can be interesting and by following the basic rules, can be remarkably profitable.
Unfortunately, I don't want to do this for other people. Expect you might have seen the adverts by people who 'having made a fortune', now want to send you a book telling you how it is done. If they actually know how to make a fortune, why are they bothering trying to sell books?

One essential ingredient for equity investment, is possessing the appropriate temperament. Last week was a good example, testing that.

Year To Date ;
Fund .............................. + 14.71%
FTSE All-Share Index .... - 7.75%
FTSE 100 Index ............. - 4.99%

Week change
Fund ........................ ...... - 3.45%
FTSE All-Share Index .... - 4.06%
FTSE 100 Index ............. - 4.12%

Last week was a shocker and many people (including professionals, using clients' money) must have been tempted to panic sell.
The experienced way to review last week, is to look to see whether the fund has outperformed the market average.
Answer Yes, -3.45% compared to -4.06%. Obviously down, but not down as much as the market.

If beating the the market proves impossible, then an Index Fund is often the sensible answer. Remember though, that the UK indices have lost 7.75% (or 4.99%) this year.

Edited by Jon39 on Saturday 18th June 16:25

[Mazinbrum]

xyz123 said:

Hi, I am looking to sorting out my ISAs and looking at long term investment. Having rewdbthe forum blow are the names tat generally get mentioned. In general all are same as in they are index funds but have their different nuances. Before I finalise one or two of the following, I wanted to ask Have I missed any other ones that I should consider?

1. Vanguard life strategy
2. VWRL
3 VWRP
4. Fund Smith equity
5.L&G multi index

Thanks

HMWO is a cheap global tracker but it doesn’t include emerging markets.
Use Morningstar comparison tool to compare the performance and risk side by side.