Only 15% of actively managed funds beat averages, but Warren Buffet has never had to pay out on a $2M bet of a BASKET of actively managed funds beating the S&P Index over a 10 year period, so do with that what you will!The best performing actively managed funds will out perform trackers but you’re right, it can be a bit of a lottery choosing which funds to go with. Lumping into last years best performer can be the equivalent of putting a fielder into the spot the batsman has just skied one to but there are funds that perform consistently well over a number of years (past performance is no guarantee etc)
I’ve only had my funds for a couple of years since taking my lump sum and while I can’t specify annual returns I have got typical returns of 30-50% since opening them
I’m surprised the percentage is so low but no reason to doubt it. There is such a range of performance in actively managed funds it makes you wonder at the bottom end just what are the fund managers thinkingOnly 15% of actively managed funds beat averages, but Warren Buffet has never had to pay out on a $2M bet of a BASKET of actively managed funds beating the S&P Index over a 10 year period, so do with that what you will!
I’m surprised the percentage is so low but no reason to doubt it. There is such a range of performance in actively managed funds it makes you wonder at the bottom end just what are the fund managers thinking
Have a look at Cathie Woods ARK funds, IF you’re entertaining actively managed funds. I have a few bucks stashed away in there, but you have to be able to live with 3% daily moves.
I’m a complete novice on shit like this. I opened an account with AJ Bell a year or two back, I think it was for a sipp which I’ve never used.
I read bits on this thread and think I must get round to it, then I just end up shying away due to lack of knowledge.
I see people mention certain accounts where you pay for share deals and some that don’t, so if you wanted to use a few funds but then every now and then fancied buying some shares if you got a decent tip, would it still be HL you‘d recommend and are there different accounts to choose from with them?
IG's regular charges for what were in effect dormant funds and shares is the reason I closed that account although I believe that fees are waived if you complete a set number of trades. I can live with a fee per trade but it's a question of scale. A £10 fee is a significant percentage of a trade worth a few hundred poundls or less but a bigger buy it's ;ess of an issue. If the stock or fund does well that initial charge is easily compensated for. If a share bombs then you've lost more than your initial fee.Personally if you’re only trading small amounts I’d use Trading 212. Companies like AJ Bell, HL & IG index charge fees each time you want to deal. If it’s shares it’s normally about £10 per trade depending on how much you deal.
I had an account with IG index a while back and was also being charged £20 a quarter.
Trading 212 doesn’t have the dealing or account fees. For someone starting out I’d recommend it. The app is decent too.
If you are thinking of opening Trading 212, then use this link and we’ll both get a feee share!
www.trading212.com/invite/GIEZX1U1
I’ve moved away from the other platforms mentioned above and now use 212.
Much depends on your attitude to risk. I have a sizeable fund and therefore only need to be cautious to generate enough for us to live on. Ours has gone up around 5% per annum over 4 years and therefore there's actually more in than when I started it. Diversification is key with some protection from bonds and cash holdings. But that diversification can lead to the portfolio almost becoming a tracker even though it's managed. I think I have 23 funds in my portfolio and they all probably have 100+ investments in each one, so that's 2000+ individual holdings, which if you think about it is probably the same as a passive, and therefore, cheaper option. I'm looking very closely at the fees I'm paying at present and whether I'm getting value for money.As I understand it, actively managed funds do worse in the long term on average than index funds though. And it also seems like there's no real way of distinguishing between skill and luck in deciding which is a well-managed fund.
What sort of return is everyone typically getting annually?
Do you know what a realistic return on investment is for something index linked? After fees and such?Much depends on your attitude to risk. I have a sizeable fund and therefore only need to be cautious to generate enough for us to live on. Ours has gone up around 5% per annum over 4 years and therefore there's actually more in than when I started it. Diversification is key with some protection from bonds and cash holdings. But that diversification can lead to the portfolio almost becoming a tracker even though it's managed. I think I have 23 funds in my portfolio and they all probably have 100+ investments in each one, so that's 2000+ individual holdings, which if you think about it is probably the same as a passive, and therefore, cheaper option. I'm looking very closely at the fees I'm paying at present and whether I'm getting value for money.
If it's money you can't afford to lose then funds are a much safer way to go than individual shares.