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Axa Biotech which has shown good growth over the last year.
That is a classic bubble and you've missed the boat, if you're going to punt on that then be prepared to lose!
Fundsmith...but it simply can't continue upwards at the same rate it has beenWhy?
It's doubled in value over 4yrs, yet the companies in which it is invested probably generate true growth of about 10-12% p/a. While both figures are very good, at some point they have to converge.
Also... trackers always lag the indices due too the drag of fees, they're a low cost investment and so they should be because they all, by definition, underperform. With a modicum of research it's not difficult to pick the winners, as they're the ones who don't follow the herd and do things differently: Fundsmith, Woodford, Lindsell Train, Majedie. There are others.
[quote=andyl said]I've got a Club Lloyds account. I get 4% on my current account, up to £6k
4% up to £5K isn't it.
I've got quite a selection...best performing one is Old Mutual UK Smaller Companies- did better in the early years than in recent times - still 106% in last 5 years though.
That is a classic bubble and you've missed the boat, if you're going to punt on that then be prepared to lose!
Actually I took a punt on this some time ago and made a couple of £k over the last few months alone 🙂 I will continue with my stop loss system and we can review in 3 months.
It's doubled in value over 4yrs, yet the companies in which it is invested probably generate true growth of about 10-12% p/a. While both figures are very good, at some point they have to converge.
I wasnt aware Fundsmith made public the full list of companies in the fund?
Also... trackers always lag the indices due too the drag of fees, they're a low cost investment and so they should be because they all, by definition, underperform. With a modicum of research it's not difficult to pick the winners, as they're the ones who don't follow the herd and do things differently: Fundsmith, Woodford, Lindsell Train, Majedie. There are others.
Those you mention aren't trackers they are funds!! Trackers track the index and are cheap to buy as they are not managed funds. Those you mention are managed funds and as such you pay a premium pa for the fund manager to actively choose stocks.
Why do they always "underperform"? If the index is up they go up and if it goes down they go down. The index has risen steadily for decades and if you had taken dividends an investment 20 years ago would give you a significant amount of cash now (even after recessions during that period) do I need to show you a graph?
Gold.
Those you mention aren't trackers they are funds
That's what he saying right? Decent funds beat trackers, that's my experience too. If I didn't have much cash maybe I'd go with a tracker as lower risk but I like a bit of risk 🙂
Gold
He he, people used to say that on here a few years back, those that listened probably lost a bit:
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Why do they always "underperform"?
If an index is up 10% a tracker will be up 9.9%, because it still charges fees. Compound that over several years and a tracker always - ALWAYS - underperforms its benchmark index. I'm simply pointing out that you don't have to settle for this. You're the one who needs to go look at some charts, surfer...
That's what he saying right?
Maybe but thats not how its written.
If an index is up 10% a tracker will be up 9.9%, because it still charges fees. Compound that over several years and a tracker always - ALWAYS - underperforms its benchmark index. I'm simply pointing out that you don't have to settle for this
Well this is really semantics. Every tracker or fund under performs given that you will incur dealing/platform/fund management charges. How do you buy any tracker/fund/stock without incurring a charge?
Whilst we are waiting to find out the above those interested in P2P lending may like to know that as of today:
[url= https://www.fundingcircle.com/blog/2014/03/a-great-budget-for-peer-to-peer-lending/ ]P2P in ISA[/url]
Good time to buy oil bet its back up around $75 next winter
http://www.bbc.co.uk/news/business/market_data/commodities/143908/twelve_month.stm
http://www.investopedia.com/ask/answers/08/oil-as-investment.asp
What do you know that other's don't? Surely the 'experts' wouldn't have sold so heavily if they thought it worth investing in. Of course you may be right but it's a brave choice. Maybe gold is worth buying as fallen so much since the mini bubble? Not for my money.
Some is now in a cash ISA at HSBC - interest plus £120 a year return so not too bad 🙂
£9k sat doing nothing though 🙁
Also there are 6% regular savings
Remember those are actually 3% savings across the year...