Fundsmith advice for newbie

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  • Fundsmith advice for newbie
  • EhWhoMe
    Member

    Hi
    Fundsmith seems popular on here and the returns do seem hard to believe .
    So would the well informed and experienced on here still say its a good place for money with it being at a high
    I have S&S ISA with H&L but want to try others.
    Also how is best to open a fundsmith fund..via H&L or direct…any links or help appreciated…

    nickjb
    Member

    I’ve been with then a while and the returns have been great. I’ve bought a few other things to keep my savings spread but fundsmith always does the best. Obviously past performance is no indication and all that but I’ve just bought some more. I believe little and often is the smart way to ride any dips. I’ve got some direct and some in HL in a pension. Both were very easy to set up (almost too easy given the sums we are talking).

    leegee
    Member

    It’s a long term investment, don’t worry about the day to day. I did at first but once I built up a bit of equity on my first investment I never looked back.

    EhWhoMe
    Member

    Thanks..can i ask also looking here , pressume its the legit site but seems bit basic
    https://www.fundsmith.co.uk/

    I guess i could go for another Isa as ive not contributed this year to the H&L one but are the no Isa and Isa options in the link the same stocks and funds, just under a different rapper…guess the isa would be more efficient in interest tax if the fund is identical.

    Also in the drop down menu it says Acc or Inc
    ..no idea what that means
    Help appreciated

    EhWhoMe
    Member

    Lindsell Train also appear similar in fund strategy,all be it Uk rather than Fundsmiths Usa and are backed by Hargreaves on the wealth 50 list where Fundsmith isnt..
    Although Hargreaves backed Neil Woodford so may not be the best guide.

    irc
    Member

    Yes, it’s the same fund for ISA and non ISA version’s. No reason not to go ISA if this year’s allowance isn’t used up I went direct. Very simple to deal with. Easy to get through on phone if you need advice ‘re what forms etc. Easy withdrawals. I’ve been in since early 2010. By far the best of a few investments.

    mariner
    Member

    Also look at SmithSon SSON.
    Another fund just started up by FS.

    Premier Icon TomB
    Subscriber

    I’ve gone direct through their website for all our buying with no hassle.

    nickjb
    Member

    To answer the above, that’s the website. It is basic but they only have a few funds. ACC is accumulation, so any winnings get reinvested, INC pays you in cash. For a long term investment might as well go all in with ACC. Go for the ISA if you have allowance. In reality it makes little difference as you probably won’t go over the limits but you might as well in case things change.

    pjm84
    Member

    My Fundsmith Equity up 84.17% since 2015. My LT up 91.4%

    My LF Woodford down -24.19%

    EhWhoMe
    Member

    Blimey pjm84..so would that mean 10k in 2015 is now £18,400 or am i missing something

    Is the smithson sson on fundsmiths site link above

    pjm84
    Member

    Hmmm starting typing a response and a dodgy warning page popped up (STW?)

    Sadly I didn’t put 10k in there but spread my Hargreaves SIPS across 39 different funds including Mr Woodfood’s.

    nickjb
    Member

    Blimey pjm84..so would that mean 10k in 2015 is now £18,400 or am i missing something

    Nope, not missing anything (other that failing to put 10k in 4 years ago). The performance of some of these funds has been great, others less so. Who knows what will happen in the next 4 years. But I think it’s still worth buying, especially for long term investment

    EhWhoMe
    Member

    Well it certainly makes my hargreaves isa look poor as its only up 5% since early 2017

    Wish id not worked out how much i would of had if id transfered to fundsmith instead😭
    Just seems to good to be true

    surfer
    Member

    I invested in Fundsmith when it opened, albeit only a relatively small amount. I have increased my holdings ever since and the returns have been exceptional. Of course they could could fall as well and that is the same with any fund or investment. I invested with him as I like his approach. “bet on companies that have already won and hold on to them” and the average age of his companies is around 100 yrs so the rationale being they have gone through a significant amount of market and economic turbulence and still managed to remain profitable/in existence! “dont invest in things you dont understand” and “dont try to predict” as it is impossible to do. He charges fees and has gotten rich off the fund (he was already rich) so I am no particular fanboi however my SIPP and ISA have a lot to thank him for.

    mike_p
    Member

    I’ve been in FS for years and it’s by far my biggest fund holding. Folk often warn that the manager has only ever run money in a favourable market, but that’s actually not true – he ran the TP pension scheme along similar lines prior to FS and achieved comparable results. Personally I don’t think FS is particularly risky; valuations may be considered a bit toppy atm, and that may lead to a period of underperformance because the gains it’s made over the past few years may not be sustainable in the long term, but one could argue that there should be a premium for quality. The holdings earn 20%+ ROCE, which is exceptional.

    You MUST do your own research though, it’s important to read about what the funds are in to, what the strategy is, etc. e.g. the folk who are now getting burned by Woodford had been warned of the risks for years, but were either ignorant or blind.

    Rule 1: Don’t choose a fund based on past performance.

    That said I did buy into Fundsmith >1yr ago as I liked the philosophy / strategy (buy quality – hold for the long term) and its my best performing fund to date (in a broadly flat market).

    As always, do your own research, and don’t put all your eggs in one basket (diversify). You’ll thank yourself if the curse of Woodford befalls a fund you’ve gone “all in” on.

    footflaps
    Member

    Can’t remember where but on the subject of the Woodford debacle they were referencing a study on fund managers which found that it you took the top 5% in a 5 year window, only 8% managed to stay in the top 5% over the next 5 years…

    leegee
    Member

    Is the smithson sson on fundsmiths site link above

    smithson

    I got in at the beginning of this and it’s doing well so far, I’m keeping an eye on it though.

    joeegg
    Member

    For Fundsmith go direct. You will pay more commission through H&L.

    duckers
    Member

    Here’s what I like about FS – Terry Smith has a large chunk of his own money in fundsmith so truly believes in what he does. There are other funds doing well also, it’s a matter of picking through them and being comfortable with short term losses and understanding you may have to hold longer term if things go bad for a while.
    I use interactive investor as an alternative to HL, they were cheaper but have restructed their pricing from £22.50 quarterly to £10 monthly, still reasonable though, and I didn’t really like some of the funds on the HL wealth 50 or the fact they they seemed to promote news items about particular funds over others (e.g. Woodford).

    handybar
    Member

    Terry Smith should be the Chancellor of the Exchequer. Impressive no-nonsense fund manager.

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