£10K short term investment advice

I havent got the exact figures to hand buyt the three largest capitalised shares still take up 25% of the All Share index.

How?

Forget it. Just look how well it tracks or performs. It will either track or it wont track. In fact all trackers dont track. I was also referring to comparing charges when looking at managed funds. Too many people get tied up in knots comparing charges whereas they should be look at performance after charges.

UTs didnt exist 90 years ago.

The nearest thing to a UT is an IT and the oldest is, I think, Foreign & Colonial. It seems to have done OK.

Not this again. See my reply to your other post. I am NOT saying all managed funds are better, but if you reduce them to the ones that are likely to be be chosen, then that is a different matter.

Eh? 'Of the moment'. Thats not for me!

Agreed, but only to some extent. The managers I mentiuoned didnt particpate in the dot.com craze, so they did OK> If you search this group to 1995 (ish) you will see I have used exactly the same arguments now as I did then, and named the same fund managers.

In fact there is one concept I mentioned then which (I havent mentioned so far. Its my own index tracker. Its aclled the JBFT98 and consists of the first 98 companies I can think of at any given time. It makes as much sense to invest in that as it does to invest in an index tracker.

Reply to
john boyle
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Why look after charges? If your charges are 5% and your investment increases by 5%, isn't that inferior to a similar increase on a tracker which costs you

Reply to
Poldie

In message , Poldie writes

It was meant as joke, but if I stuck to the same 98 from the outset I would have no more ongoing charges.

Reply to
john boyle

I'm puzzled - why do the comparison after charges? I mean, we're trying to see which is best including charges, not excluding them.

Look at this piece:

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"What looks like a small difference in cost this year - say the difference between paying 0.3 per cent and 0.7 per cent a year - can turn out to be very large indeed over the life of your investment."

Is the author wrong?

Reply to
Poldie

Exactly. Are you confused about what "including" means?

The point is to measure the effective benefit to the investor of the investment. So if you want to "see which is best including charges" surely in this instance "including charges" means that the effect of charges has been included in the evaluation. That is the same as saying you want to compare investment returns after charges have been subtracted from them.

Reply to
Ronald Raygun

In message , Poldie writes

So that you see what happens after charges have been deducted form the profit.

Thats what I mean. I.e. AFTER charges have been deducted.

No, you have completely misread my post. I didnt think I could have made it any clearer.

Reply to
john boyle

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