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  1. #1

    20k starting investment

    I‘ve just cashed in a old endowment and would like invest 20k for 10-15 yrs. My original thoughts were a ISA with Something like HSBC global fund or a similar Vanguard fund. Or would a Lifestrategy fund be more appropriate? Appreciate your thoughts folks.

  2. #2
    Top of my head, buy-and-hold for 15 year portfolio:

    30% Vanguard Lifestrategy 60
    30% Fundsmith
    30% Lindsell Train Global
    10% Vanguard Emerging Markets

    My thinking with Lifestrategy 60, at a 30% weighting, is it gives you 12% (across the portfolio) in a broad range of bonds .. I think across a portfolio, 10-15% bonds is reasonable, just as a hedge against anything unexpected .. If you don't mind a little extra risk, I'd go for Vanguard FTSE World All-Cap.

  3. #3
    Thanks for that. I’ll have a look at those. I guess the charges are a bit higher on the Fundsmith and Lindsell funds.

  4. #4
    Lindsell Train's charge, on a platform like Hargreaves Lansdown, is 0.54% .. So only 0.32% higher than a LifeStrategy fund.

    At that level, fee differences are fairly negligible .. Fees have a negative compounding effect, and if you imagine earning 0.54% interest, it would take a long time before compounding really had an effect.

    1% and over things get more noticeable .. I do wish Fundsmith would reduce the fee to 0.6% .. But you could get an ISA with them directly, and then you'd be paying 1% for Fundsmith, vs 0.72%(?) for Lifestrategy (unless you went direct with Vanguard) .. So it's *reasonable*, I think .. I like those funds, not because I've got any opinion on whether they'll outperform in future, but because I like knowing I'm invested in good businesses

  5. #5
    Still a lot better performance net of those charges so far!


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