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>> No. 8626 Anonymous
5th April 2021
Monday 10:50 pm
8626 New Tax Year
Lads I forgot it's new years eve. What fund should I put 4k on for this year?

I'm considering ASI Latin American Equity to have some exposure to emerging markets but it would make me a slave to US yields. Might instead just put it all on FTSE250 if we're going to have a sharp recovery this year.
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>> No. 8627 Anonymous
5th April 2021
Monday 11:13 pm
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Either Unicorn Smaller Companies or Marlborough UK Micro Cap Growth.
>> No. 8628 Anonymous
5th April 2021
Monday 11:24 pm
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It's not new years, it's not even tax new year for a few more minutes. That said, Vanguard is and remains a safe bet. Unless you really want to get into active trading an LS80% S&S ISA is a good bet. I like to gamble a bit, spread attached.
>> No. 8629 Anonymous
5th April 2021
Monday 11:25 pm
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>>8627
Interesting. Tah lad!
>> No. 8630 Anonymous
6th April 2021
Tuesday 1:11 am
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>>8629
Goodness, that one looks pretty good. Is this our first .gs bona fide tip? to the moon etc
>> No. 8674 Anonymous
7th April 2021
Wednesday 6:57 pm
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>>8630

Almost anything looks good on a graph that starts at April 2020!

OP, I just bought £12k of Smithson, so don't buy that because it will inevitably flop now.
>> No. 8693 Anonymous
8th April 2021
Thursday 3:17 pm
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>>8628
I can also recommend Vanguard - it's a great platform. LifeStrategy 100% equity acc has been killing it for me - on about 28% returns atm (so that's a jinx)
>> No. 8712 Anonymous
12th April 2021
Monday 1:27 am
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>>8626
>Might instead just put it all on FTSE250
In a blind rage that I will never be able to afford a house, I wanted to buy 0.5 Bitcoins for a little over 20 grand, but it turns out my app has limited me to £3000 transactions. In doubly blind double-rage, I have just invested £5000 in a FTSE 250 tracker fund. I assume that's what you meant. I should really have checked.

It's a good thing I still have like 20 grand left over, so I can theoretically afford to lose the many thousands I have just thrown at the economic roulette wheel, more or less with my eyes shut. Anyway, I'll let you know if FTSE 250 was a good idea.
>> No. 8715 Anonymous
12th April 2021
Monday 12:20 pm
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>>8712
Isn't it always a smart move to put a bit in a tracker? At least you know that money is relatively safe.
>> No. 8716 Anonymous
12th April 2021
Monday 12:30 pm
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>>8715
Depends what you're tracking.
>> No. 8717 Anonymous
12th April 2021
Monday 1:00 pm
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>>8712
Yes, as a rule an index tracker will almost always beat active investment by a hedge fund over the long-term. There's a famous bet on the matter:
https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp

As for the 250, I think there's still some room for growth in the UK internal market; not least as we're doing rather well with Covid compared to Europe and got Brexit sorted which had held down UK investment (FTSE100 is larger more international companies). I would still recommend spreading your bets though, common wisdom is actually to do one of two things:

1. Use a global tracker but I'm more inclined toward developed economies at the moment and I don't invest in dictatorships.

2. A US tracker or two is recommended but from experience you tend to just have general US on offer - you can see from the picture that the US has been the second best tracker which is about to overtake the FTSE250 and, let's be honest, the US is always going to be a better bet when it comes to the recovery. The economy is also sufficiently large and integral that you can get away with only investing in the US.

I like to have a foot in Japan because it can at times be counter-cyclical which stops some blood-red days but it's not a growth economy so you're just having peace of mind. Also You really can take a bigger risk with your cash, at least until the third quarter when everyone expects to see SHTF as governments realise they have no money and no reason to keep the life support on the economy.

>>8715
Yes, at a minimum your tax free amount but this can be a solid 90% of your portfolio (diversified across a number of indices) with your 10% on get-rich-quick bullshit. If indices collapse then we've all got far bigger things to worry about and you can now get that house with some mere judicious swings with a cricket bat onto someone's melon.
>> No. 8718 Anonymous
12th April 2021
Monday 1:13 pm
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>>8717
>Yes, as a rule an index tracker will almost always beat active investment by a hedge fund over the long-term. There's a famous bet on the matter

Going off on a tangent here, but it always bugs me when people use US-centric research when it comes to investing over here. It happens a lot on r/UKPersonalFinance.

Talking about hedge funds is almost entirely irrelevant when talking to a British investor so comparing how US hedge funds have done against the S&P 500 doesn't mean a great deal. It is fairly well known that it is much harder for active funds in the US to outperform compared with how they fare in global markets.

Do you have any research comparing UK active funds against the FTSE All Share, particularly those with the objective of beating it as not all active funds will have that aim, or comparing global active funds with a global equity tracker?
>> No. 8720 Anonymous
12th April 2021
Monday 2:01 pm
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>>8718
>Do you have any research comparing UK active funds against the FTSE All Share, particularly those with the objective of beating it

Not on similar terms because no fund will take up a bet that involves undermining their entire business model. Buffett-Seides only happened for the publicity.

In terms of actual research a cursory google gave me the usual conclusions you would expect, UK active funds outperformed in the volatile 2020 market but that the 10 year is still a majority passive world. That summarises the idea of ordinary days as good for passive and extraordinary for active:

https://www.ii.co.uk/analysis-commentary/80-uk-funds-outperformed-2020-10-year-success-rate-lower-ii515567#:~:text=On%20a%2010-year%20basis%2C%2093%25%20of%20Global%20Equity,the%20S%26P%20Global%201200%20index.&text=UK%20fund%20managers%20were%20also,funds%20(75%25%20underperformed).

Overall that again calls into question the high-fees for active managers, especially once everyone has copied your successful buy-high, sell-low strategy.
>> No. 8721 Anonymous
13th April 2021
Tuesday 1:37 am
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>>8717
Me again. I have just done some very rudimentary research into whether or not it was a good idea to sink five Gs into the FTSE 250, and by the looks of things, I did so when it was at its highest point ever, or at least since 2016. It might grow further, of course, but I suspect my brilliant plan that it will all double in the next two weeks might not be as brilliant as I thought.
>> No. 8722 Anonymous
13th April 2021
Tuesday 6:32 am
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>>8721
Just about everything has reached an all-time high recently.
>> No. 8723 Anonymous
13th April 2021
Tuesday 10:53 pm
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>>8721
>my brilliant plan that it will all double in the next two weeks

Lad, it's a tracker of the 101-350 largest companies on the London Stock Exchange. This is defensive investing where the object is to get solid returns for a lower diversified risk, that's what index funds do by allowing retail investors to own a piece of everything for (hopefully) low volatility growth. Also the fees are cheap which I like because I'm a tight-fisted ogre.

I strongly suggest you both read up and also lower your expectations before you lose everything on magic beans.
>> No. 8724 Anonymous
13th April 2021
Tuesday 10:59 pm
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>>8721

You need to think long term, that's what tracker funds are all about. Will you lose money tomorrow, next week, next month? Probably, maybe. Will you lose money over the next ten or fifteen years? Probably not, and you'll be slightly to mostly better off as compared to it sitting in an savings ISA.

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