Money To The Masses http://moneytothemasses.com Putting you in control Fri, 04 Sep 2015 12:40:22 +0000 en-GB hourly 1 The easy way to make a complaint against a companyhttp://moneytothemasses.com/quick-savings/tips/make-complaining-quick-and-simple-by-using-resolver http://moneytothemasses.com/quick-savings/tips/make-complaining-quick-and-simple-by-using-resolver#comments Fri, 04 Sep 2015 08:48:44 +0000 http://moneytothemasses.com/?p=20093 Make complaining quick and simple by using Resolver If you have experienced poor service, purchased faulty goods or been sold something you didn't need then making a complaint is the only way to get things resolved. However, actually making a complaint in the correct manner and receiving a satisfactory response is far from easy. We...

The post The easy way to make a complaint against a company appeared first on Money To The Masses.

]]>
Make complaining quick and simple by using Resolver

angry manIf you have experienced poor service, purchased faulty goods or been sold something you didn't need then making a complaint is the only way to get things resolved. However, actually making a complaint in the correct manner and receiving a satisfactory response is far from easy. We have all experienced hanging on the end of a telephone line, getting swamped in paperwork and ending up wondering why we bothered.

Now help is at hand with a new free service called Resolver that can make you more organised in the way you make a complaint and hopefully more successful in achieving the right result.

What is Resolver?

Resolver is a free complaints management service that will handle your complaint from start to finish. Once you have created an account Resolver will do the following:

  • provide email templates that are proven to get a response and reflect how you are feeling and what you want to happen
  • give you access to details on more than 5,000 companies including who to complain to within those companies
  • direct any email responses into your personal Resolver file and you will be emailed when they arrive
  • if you download the Resolver smartphone app it will then record and store your complaint call in your file
  • save and upload all relevant documents in your own case file
  • keep track of your complaint and If your complaint has not been resolved in eight weeks your case file will be ready to be forwarded to the relevant Ombudsman

So next time you are ready to complain why not give this new service a try, you have nothing to lose.

The post The easy way to make a complaint against a company appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/quick-savings/tips/make-complaining-quick-and-simple-by-using-resolver/feed 0
80-20 Investor Heatmaphttp://moneytothemasses.com/80-20-heatmaps/80-20-investor-heatmap http://moneytothemasses.com/80-20-heatmaps/80-20-investor-heatmap#comments Fri, 04 Sep 2015 08:01:01 +0000 http://moneytothemasses.com/?p=19623 Welcome to the 80-20 Investor Heatmap! The idea for this feature was sparked by a conversation with an 80-20 Investor member. DIY investors regularly tell me that they struggle with choosing which sectors (types of funds) to invest in. This is called asset allocation. We currently help solve this problem by identifying the best opportunities on...

The post 80-20 Investor Heatmap appeared first on Money To The Masses.

]]>
Welcome to the 80-20 Investor Heatmap!

The idea for this feature was sparked by a conversation with an 80-20 Investor member. DIY investors regularly tell me that they struggle with choosing which sectors (types of funds) to invest in. This is called asset allocation.

We currently help solve this problem by identifying the best opportunities on a fund by fund basis. So for example you can look at my portfolio to see which funds (and therefore sectors) I am investing in. Or you can use the Best of the Best selection to see the current shortlist chosen by the 80-20 Investor algorithm. You can then see which sectors these funds belong to. However, just because one fund in a sector may have momentum it doesn't mean others in the same sector do.

But the 80-20 Investor Heatmap helps you quickly answer the 'which sector to buy?' question by looking at momentum at a sector level, rather than at a fund level.

The purpose of this heatmap is to complement the other resources mentioned above. The Heatmap shows variations in the short term momentum from month to month of a given sector.

How to use the Heatmap

The table is ranked from the most risky sectors at the top to the least risky at the bottom. This is based on the average level of risk taken by funds within each sector. This itself will prove useful in choosing sectors to look at within our Best funds by sector section.

Then for each sector we show the historic short-term momentum for each of the last 6 months. This gives you an idea of how the momentum has moved over time. So if for example you look at Japan you will see that it is near the top of the chart, which means that the average fund is medium to high risk.

If you now look across the low risk sectors you will see greens and yellows appearing on the right hand side which indicates that the short term momentum in recent months has been good (see the key below). It is no surprise then that these more defensive sectors have started to creep into the Best of the Best selection recently.

I have also included cash in the table which unsurprisingly is the lowest risk asset class, so sits at the bottom of the table. What is interesting is that in June, when the Greek debt crisis escalated, and in August, when concerns over China growth hit markets, it was the place to be (shown by the fact it was green).

Overall the heatmap suggests that now is a good time to be reducing the risk level of your portfolio.

MOMENTUM KEY:

key

 

CLICK THE TABLE TO ENLARGE

80-20 Investor heatmap

The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

 

 

 

The post 80-20 Investor Heatmap appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/80-20-heatmaps/80-20-investor-heatmap/feed 0
80-20 Investor Best of the Best Selection – September 2015 Updatehttp://moneytothemasses.com/8020-articles/80-20-investor-best-of-the-best-selection-september-2015-update http://moneytothemasses.com/8020-articles/80-20-investor-best-of-the-best-selection-september-2015-update#comments Thu, 03 Sep 2015 20:44:37 +0000 http://moneytothemasses.com/?p=20088 A total of 10 funds from August make it into September's selection, which is just less than half of them. Below I list this month's selection in full with the 13 funds that regained their place in black while the new additions are in green. Just as last time, I have included the full list sorted alphabetically by name and then by risk category....

The post 80-20 Investor Best of the Best Selection – September 2015 Update appeared first on Money To The Masses.

]]>
A total of 10 funds from August make it into September's selection, which is just less than half of them. Below I list this month's selection in full with the 13 funds that regained their place in black while the new additions are in green.

Just as last time, I have included the full list sorted alphabetically by name and then by risk category.

September's Best of the Best Selection - (A-Z by fund name)

(funds unchanged from last month are in black while new additions are in green)

Fund nameSectorISIN CodeRisk level
Aberdeen - European High Yield BondSterling High YieldGB00B5968F40Low risk
Argonaut - FP Argonaut European AlphaEurope Excluding UKGB00B4ZRCD05High risk
Artemis - Pan-European Absolute ReturnTargeted Absolute ReturnGB00BMMV4J16Medium risk
Aviva Inv - European EquityEurope Excluding UKGB0032494246High risk
AXA - Framlington UK Smaller CosUK Smaller CompaniesGB0030310857Medium risk
BlackRock - European Absolute AlphaTargeted Absolute ReturnGB00B4Y62T40Low risk
BlackRock - UK Absolute AlphaTargeted Absolute ReturnGB00B06L9G55Medium risk
CF - Miton UK Value OpportunitiesUK All CompaniesGB00B8KV0M06Medium risk
Fidelity - Japan Smaller CompaniesJapanGB0003860565High risk
FP - Miton Undervalued AssetsUK All CompaniesGB00B3BSKG91Medium risk
Invesco Perpetual - European OpportunitiesEurope Excluding UKGB00B28J0N53High risk
Kames - UK Smaller CompaniesUK Smaller CompaniesGB00B142FH03Medium risk
L&G - Dynamic BondSterling Strategic BondGB00B1TWMW95Low risk
Man GLG - Continental EuropeEurope Excluding UKGB00B0119370High risk
Marlborough - High Yield Fixed InterestSterling High YieldGB00B03TN153Low risk
Old Mutual - UK Mid CapUK All CompaniesGB00B1XG7999Medium risk
Premier - Global Alpha GrowthGlobalGB00B2QXTP49High risk
Schroder - Absolute UK DynamicTargeted Absolute ReturnGB00B3N74T57Medium risk
Schroder - Monthly High IncomeSterling High YieldGB0009505693Low risk
Schroder - Strategic CreditSterling Strategic BondGB00B11DNZ00Low risk
Schroder - UK Dynamic Smaller CompaniesUK Smaller CompaniesGB0031092942Medium risk
Schroder - UK Smaller CompaniesUK Smaller CompaniesGB0007649535Medium risk
Standard Life Investments - Ignis High Income BondSterling High YieldGB0009515957Low risk

September's Best of the Best Selection - (grouped by risk)

Here is September's shortlist grouped by their risk category (funds unchanged from last month are in black while new additions are in green):

Fund nameSectorISIN CodeRisk Level
Aberdeen - European High Yield BondSterling High YieldGB00B5968F40Low risk
BlackRock - European Absolute AlphaTargeted Absolute ReturnGB00B4Y62T40Low risk
L&G - Dynamic BondSterling Strategic BondGB00B1TWMW95Low risk
Marlborough - High Yield Fixed InterestSterling High YieldGB00B03TN153Low risk
Schroder - Monthly High IncomeSterling High YieldGB0009505693Low risk
Schroder - Strategic CreditSterling Strategic BondGB00B11DNZ00Low risk
Standard Life Investments - Ignis High Income BondSterling High YieldGB0009515957Low risk
Artemis - Pan-European Absolute ReturnTargeted Absolute ReturnGB00BMMV4J16Medium risk
AXA - Framlington UK Smaller CosUK Smaller CompaniesGB0030310857Medium risk
BlackRock - UK Absolute AlphaTargeted Absolute ReturnGB00B06L9G55Medium risk
CF - Miton UK Value OpportunitiesUK All CompaniesGB00B8KV0M06Medium risk
FP - Miton Undervalued AssetsUK All CompaniesGB00B3BSKG91Medium risk
Kames - UK Smaller CompaniesUK Smaller CompaniesGB00B142FH03Medium risk
Old Mutual - UK Mid CapUK All CompaniesGB00B1XG7999Medium risk
Schroder - Absolute UK DynamicTargeted Absolute ReturnGB00B3N74T57Medium risk
Schroder - UK Dynamic Smaller CompaniesUK Smaller CompaniesGB0031092942Medium risk
Schroder - UK Smaller CompaniesUK Smaller CompaniesGB0007649535Medium risk
Argonaut - FP Argonaut European AlphaEurope Excluding UKGB00B4ZRCD05High risk
Aviva Inv - European EquityEurope Excluding UKGB0032494246High risk
Fidelity - Japan Smaller CompaniesJapanGB0003860565High risk
Invesco Perpetual - European OpportunitiesEurope Excluding UKGB00B28J0N53High risk
Man GLG - Continental EuropeEurope Excluding UKGB00B0119370High risk
Premier - Global Alpha GrowthGlobalGB00B2QXTP49High risk

The funds that dropped out of the Best of the Best Selection

For reference the funds from last month that dropped out of the 80-20 Best of the Best list are listed below. Many of them remain in the Best funds by Sector selection:

Fund nameSectorISIN CodeRisk level
Aberdeen - High Yield BondSterling High YieldGB00B5968F40Low risk
Aberdeen - Property SharePropertyGB00B0XWNM59High risk
Argonaut - FP Argonaut European Enhanced IncomeEurope Excluding UKGB00B7M3XX95Medium risk
AXA - Framlington American GrowthNorth AmericaGB0003509212High risk
AXA - Framlington Global TechnologyTechnology & TelecomGB0006598998High risk
Cavendish - TechnologyTechnology & TelecomGB00B60SMN24High risk
FP - Apollo Multi Asset BalancedMixed Investment 20%-60% SharesGB00B3FPF276Low risk
GLG - Technology EquityTechnology & TelecomGB00B0119H13High risk
Henderson - Japan OpportunitiesJapanGB0007683203High risk
JPM - Cautious ManagedMixed Investment 0%-35% SharesGB00B09RGK38Low risk
Marlborough - Multi Cap IncomeUK Equity IncomeGB00B5L8VH15Medium risk
Natixis - Loomis Sayles U.S. Equity LeadersNorth AmericaGB00B8L3WZ29High risk
Old Mutual - Bond 1Sterling Strategic BondGB0033476184Low risk
PFS - Chelverton UK Equity IncomeUK Equity IncomeGB00B1FD6244Medium risk
PFS - TwentyFour Dynamic BondSterling Strategic BondGB00B566LX69Low risk
SF - Metropolis ValueFlexible InvestmentGB00B3LDLX86Medium risk
SJP - International Corporate BondGlobal BondsGB00B62VYF56Low risk
Unicorn - UK IncomeUK Equity IncomeGB00B00Z1S94Medium risk

Commentary

Well August was an incredible month in investing. Equity markets tumbled worldwide (due to concerns over China's economy) with most markets down around 10% or more before recovering slightly. Despite this the 80-20 Investor Best of the Best Selection managed to extend its outperformance over the market and fund managers. Part of the reason was that the selection had no exposure to emerging markets, Asia (excluding Japan) or China. In addition there was a move towards more defensive funds. That remains the case this month.

This month the portfolio has become more concentrated with 23 funds. The equity part of the portfolio now has a UK Smaller companies and European focus. Interestingly last month US equities and technology stocks entered the Best of the Best Selection but this month they narrowly missed out.

The noticeable feature is that a number of absolute return funds which use alternative strategies have entered the selection. It is the first time that so many absolute return funds have made the grade. There is certainly a reduction in risk when you look at the Best of the Best Selection this month, emphasised by the fact that there are only 6 high risk funds (usually there are up to 10).

Previously I've explained that our risk ratings take into account how funds are behaving in the current market conditions. With the market sell-off being sparked by concerns that Chinese economic growth is faltering european equities (particularly in Germany which exports to China) have been especially volatile. Therefore it comes as no surprise that the European equity funds are now classed as high risk plays.

The Asset mix

The current asset mix of the new Best of the Best Selection is shown below with last month's figures in brackets:

  • UK Equities 30% (22%)
  • Global Fixed Interest 13% (15%)
  • Alternative strategies 13% (0%)
  • European Equities 12% (11%)
  • UK Corporate Fixed Interest (i.e UK bonds) 11% (9%)
  • Japanese Equities 5% (3%)
  • North American Equities 3% (14%)

The remainder is made up of other international equities.

80-20 Investor Best of the Best fund performance – since inception August 2014

The 80-20 Investor Best of the Best fund selection is over a year old. As you know we've been tracking the Best of the Best Selection of funds, as picked by our unique algorithm, since August 2014. The chart below shows how someone who had bought the Best of the Best Selection each month would have fared (in green) versus the average managed fund (black) and the FTSE 100 (red). What is particularly pleasing is that the 80-20 Investor Best of the Best Selection outperformed even during the recent market sell-off.

 Screen Shot 2015-09-03 at 09.44.43
All performance figures are net of fund charges. The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

 

The post 80-20 Investor Best of the Best Selection – September 2015 Update appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/8020-articles/80-20-investor-best-of-the-best-selection-september-2015-update/feed 0
Chatterbox – September 2015http://moneytothemasses.com/chatterbox/chatterbox-september-2015 http://moneytothemasses.com/chatterbox/chatterbox-september-2015#comments Tue, 01 Sep 2015 08:00:01 +0000 http://moneytothemasses.com/?p=20117 The place to talk about investing, what’s in your portfolio or ask questions via the comments section below.  

The post Chatterbox – September 2015 appeared first on Money To The Masses.

]]>
The place to talk about investing, what’s in your portfolio or ask questions via the comments section below.

investment quote

 

The post Chatterbox – September 2015 appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/chatterbox/chatterbox-september-2015/feed 0
Best of the Sunday papers’ MONEY sectionshttp://moneytothemasses.com/news/best-sunday-papers-money-sections http://moneytothemasses.com/news/best-sunday-papers-money-sections#comments Sun, 30 Aug 2015 06:30:48 +0000 http://moneytothemasses.com/?p=16650 30th August 2015 The Independent Car finance options: Best way to buy a 65 plate Claims firms blamed as complaints soar over packaged bank accounts The best deals on personal loans: Peer-to-peer providers are more competitive for smaller sums The Telegraph Forget Black Monday: the real stock market crash of 2015 Savers on verge of...

The post Best of the Sunday papers’ MONEY sections appeared first on Money To The Masses.

]]>
30th August 2015

The Independent

Car finance options: Best way to buy a 65 plate

Claims firms blamed as complaints soar over packaged bank accounts

The best deals on personal loans: Peer-to-peer providers are more competitive for smaller sums

The Telegraph

Forget Black Monday: the real stock market crash of 2015

Savers on verge of compensation as regulator examines annuity mis-selling

'I cashed in final salary pension for £272,000. Can I turn it into £1m?'

The post Best of the Sunday papers’ MONEY sections appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/news/best-sunday-papers-money-sections/feed 0
Best of the Sunday papers’ PROPERTY sectionshttp://moneytothemasses.com/news/best-of-the-sunday-papers-property-sections http://moneytothemasses.com/news/best-of-the-sunday-papers-property-sections#comments Sun, 30 Aug 2015 06:15:36 +0000 http://moneytothemasses.com/?p=16656 30th August 2015 The Independent Bank Holiday DIY: 25 top tips London house prices: Hillingdon replaces Newham as the fastest-growing borough UK House Prices: the East of England overtakes London as the UK's fastest growing region The Telegraph Why being an accidental millionaire doesn't make you feel rich Paying a high price for the ultimate...

The post Best of the Sunday papers’ PROPERTY sections appeared first on Money To The Masses.

]]>
30th August 2015

The Independent

Bank Holiday DIY: 25 top tips

London house prices: Hillingdon replaces Newham as the fastest-growing borough

UK House Prices: the East of England overtakes London as the UK's fastest growing region

The Telegraph

Why being an accidental millionaire doesn't make you feel rich

Paying a high price for the ultimate city lifestyle

In pictures: Beautiful homes in the 10 happiest and most affordable commuter towns

The post Best of the Sunday papers’ PROPERTY sections appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/news/best-of-the-sunday-papers-property-sections/feed 0
The power of process in turbulent marketshttp://moneytothemasses.com/8020-articles/the-power-of-process-in-turbulent-markets http://moneytothemasses.com/8020-articles/the-power-of-process-in-turbulent-markets#comments Thu, 27 Aug 2015 10:33:05 +0000 http://moneytothemasses.com/?p=20067 What a fascinating/crazy week for equity markets. In my recent weekly 80-20 Investor newsletter I gave a sense of perspective to what had been happening. Since then investment markets have become even more volatile. By Monday stock markets globally were in full blown panic mode. The FTSE 100 for example lost 4.67% in a single day!...

The post The power of process in turbulent markets appeared first on Money To The Masses.

]]>
surfingWhat a fascinating/crazy week for equity markets. In my recent weekly 80-20 Investor newsletter I gave a sense of perspective to what had been happening. Since then investment markets have become even more volatile.

By Monday stock markets globally were in full blown panic mode. The FTSE 100 for example lost 4.67% in a single day! That was one of the worst days since the financial crisis. Forget stock market corrections (a fall of 10% from recent highs) investment commentators were talking potential bear markets occurring (falls of 20% or more).

The press and Bloomberg TV wheeled in loads of people to explain what was going on and where markets are headed next. These experts broadly fell into two camps:

  • those telling you that the world was ending
  • or the majority who were saying this was a great buying opportunity

Oddly, these same people had been wheeled out the week before when the markets were falling. Yet in light of the new down-leg in equity markets I didn't see any of the bullish commentators say, 'do you know what? I was wrong last week, it wasn't the time to buy but now is'.

Yet none of this 'press noise' is helpful especially for DIY investors as I explain below.

Don't shorten your investment time horizons

When markets are behaving like they are right now everyone is searching for answers of when the sell-off will stop. They start thinking about whether they should get out of the market or change their asset allocation.

In effect what people are doing is shortening their investment time horizon, when in fact they should be lengthening them if anything.

If you are investing money then you must have an investment timeframe of at least 5 years, preferably 10 years or more. Therefore what happens on a given day is irrelevant. As I mentioned in my newsletter last week, 10% stock market corrections happen around every 18 months while 20% falls happen every 9 years on average. We were overdue a 10% correction and a 20% fall will only be around the corner if the current market volatility doesn't end up that way.

That means if you are investing for 10 years at the very least you should expect to experience 6-7 corrections (10% falls) and probably 1-2 bear markets (20% falls). Of course your whole portfolio won't be exposed to equities but if you've found this week uncomfortable then you need to be honest with yourself as to whether investing is really for you.

The newspapers and the likes of Bloomberg TV sell news. Therefore they are not going to be sanguine about what's going on, if they were then no one would buy their news.

Here's a tip to realign your thinking and get a sense of perspective. Let's say your investment timeframe is 20 years. The next time markets sell-off ask yourself the question, will what happens today matter 20 years from now. Clearly it won't.

Don't give in to confirmation bias

This current market volatility provides another great DIY investing lesson. Most investors will have spent the week pouring over the news looking for someone to tell them that everything is going to be ok and that their losses will be erased. Let's be honest in a market like this gripped by panic no matter which equities you held you will have lost money, at least on paper anyway. The FTSE 100 is currently down over 12% and even the average balanced fund manager (who invests in bonds as well as equities) is down nearly 6% in the last week.

The TV is full of investment managers who run billions of pounds of investors' money saying why this time is different. Or maybe they are saying why the world is about to end. They will pull up charts that back up their view. Yet there are only two things that are certain from all of this:

  • they can't all be right
  • that their view will match what they are doing with their investors' money, even if they think personally that they've got it wrong. Professional pride is a powerful thing.

All of the above are perfect examples of confirmation bias in action. Confirmation bias is a human flaw. It's the tendency for us humans to put more faith in information that agrees with what we already believe and to ignore opinions and data that disagree with this belief. Confirmation bias even means that we tend to more easily recall things that reaffirm our belief over those things that don't. There is more on confirmation bias along with a great video in a previous newsletter of mine called - 'Can you solve this?' Do have a go at the challenge in the video as it shows how we all easily fall victim to confirmation bias.

So all the noise we hear from the press when markets wobble encourages confirmation bias when we invest. We will have all been guilty of it this week but that's what being human is all about. The trouble is that confirmation bias encourages you to make emotional investment decisions based on fear and greed. The successful investors keep confirmation bias and their emotions in check.

The great news is that by simply being aware that you are looking to reaffirm what you would like hear is enough to make you stop. Which in turn limits your capacity for making emotional investment decisions. So enjoy reading the press and watching the investment news by all means but try spotting the confirmation bias in their experts as a bit of fun.

Don't think the market only goes up

Hearing news anchormen ask their expert guests 'what is going?' always seems to have an undertone of 'because markets shouldn't go down'. Investment markets behave like the waves of the sea. Every wave has an upside and a downside and the tides ebb and flow. Investing is akin to surfing those waves and it requires a bit of skill, technique and luck. Bemoaning the very nature of investment markets is like standing in the sea and moaning when a big wave gets your hair wet. If you don't want to get wet then don't go swimming.

Why is there never as much news coverage when markets go up? The answer from TV producers would likely be 'markets tend to go up, that just isn't news'. Unfortunately this is what causes people to assume markets always go up. It encourages speculation and investment bubbles and inevitably market crashes. Ironically at that point the TV producers then become interested.

The power of process

This week has been a great opportunity to pull together a number of DIY investing lessons. You should have worked out by now that I am pretty sanguine about where the market is headed from here. That's not to say I'm complacent, of course I'd like the stock market to only go up but as I've pointed out that doesn't happen.

The key thing to take away from the recent market rout is the importance of having an investment process. We have no control over what happens. So what do we do? Studies have shown that if you focus on process rather than outcomes it leads to better decisions. This is also true in investing.

Focusing on process frees us from worrying about the things we don't have control over such as the performance day-to-day (or whether China is growing or heading for recession). That's not to say you won't have periods of underperformance, every sound process will have. Yet focusing upon a process has been shown to maximise the potential to generate good returns over the long-term, as long as it is a sound process such as one based on momentum like the 80-20 Investor algorithm.

The chart below shows what would have happened if you'd applied the strategy at the heart of 80-20 Investor (the green line) since 1995 when investing in UK equity funds. You'd be up 1,089% versus 255% from the FTSE 100 (blue line) and 242% from the average UK equity fund manager (red line). Click image to enlarge.

Screen Shot 2015-08-27 at 10.30.49

This investment timeframe takes into account multiple equity market corrections and bear markets. What you notice is that the process doesn't make you immune form market falls. In fact the scale of the falls of the 80-20 Investor strategy is the same as those of the other strategies, the scale just exaggerates them.

What you will notice is that when markets turn that the green line rides the wave upwards. Sticking to a strategy through thick and thin is the key to its success. Sometimes it will be uncomfortable but ultimately profitable. So while the recent market falls are unwelcome you can see why I calmly accept the ride. It's because when markets rise different parts rise at different rates. The 80-20 Investor algorithm is designed to jump on to those parts that are likely to ride the best waves upwards.

To use my surfing analogy again, it's worth watching how a surfing competition is won. If you watch a surf competition it's difficult to see who is winning as the waves come crashing down and surfers bob around. Surfers spend their time riding lots of waves but not every wave counts. Essentially judges score each wave that the surfer rides and then ditches his best and worst ones before averaging the rest. Or in other words the key is to catch a few big waves and ride them well. Investing is the same and the 80-20 Investor algorithm is designed to boost your chances of riding those big waves.

More importantly the best surfers don't worry about choppy seas and neither should DIY investors. So when might the next big wave come along? Have a read of my article 'The best strategy in a stock market crash – Stick or Twist?'

 

(photos by phil1950 via freedigitalphotos.net)

 

The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

 

The post The power of process in turbulent markets appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/8020-articles/the-power-of-process-in-turbulent-markets/feed 0
Should we take out single or joint life insurance policies?http://moneytothemasses.com/quick-savings/insurance-2/life-insurance/should-we-take-out-single-or-joint-life-insurance-policies http://moneytothemasses.com/quick-savings/insurance-2/life-insurance/should-we-take-out-single-or-joint-life-insurance-policies#comments Mon, 24 Aug 2015 08:00:13 +0000 http://moneytothemasses.com/?p=17303 Should we take out single or joint life insurance policies? An important element of getting your finances in order is to make sure, if others are reliant on your income, that you are fully covered in the event of death. There is sometimes confusion with couples, or business partners, as to whether they should take...

The post Should we take out single or joint life insurance policies? appeared first on Money To The Masses.

]]>
Should we take out single or joint life insurance policies?

Should we take out single or joint life insurance policies?An important element of getting your finances in order is to make sure, if others are reliant on your income, that you are fully covered in the event of death. There is sometimes confusion with couples, or business partners, as to whether they should take out single or joint life insurance policies.

There are benefits and drawbacks with both types of policy and these are explained below.

Single life insurance

  • single life insurance policies will cover each partner in the event of death
  • if both partners die within the term of their policy then two amounts will be paid out
  • different terms and sums assured can be arranged on each policy
  • no need to insure both partners in a marriage or business
  • often more expensive than joint policies - BUT NOT ALWAYS!
  • in the event of the first death life cover will still exist on the partner
  • if partners no longer live together they can take ownership of their individual polices

Joint life insurance

  • only one sum assured will be paid out in the event of death
  • payment will normally be made in the event of the first death
  • if payment is made during the term the surviving partner will have no life insurance cover, replacing this cover could be more expensive due to age or health
  • generally cheaper than two single policies
  • if both partners die at the same time then only one amount is paid out, if there are dependent young children then two single polices would provide extra cover

How does the cost of single and joint life insurance compare?

The table below shows examples of monthly premiums for £100,000 of level term insurance over a 25 year term

MaleFemaleJoint Life
Age 35£6.64£6.34£11.12
Age 45£14.43£13.26£24.67
Age 55£37.52£35.78£69.27

Further reading:

Do I need mortgage life insurance?

How can I reduce my life insurance premiums?

The post Should we take out single or joint life insurance policies? appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/quick-savings/insurance-2/life-insurance/should-we-take-out-single-or-joint-life-insurance-policies/feed 0
80-20 Investor outperformance revealedhttp://moneytothemasses.com/saving-for-your-future/investing/80-20-investor-outperformance-revealed http://moneytothemasses.com/saving-for-your-future/investing/80-20-investor-outperformance-revealed#comments Thu, 20 Aug 2015 19:16:01 +0000 http://moneytothemasses.com/?p=20038 80-20 Investor officially launched to DIY investors in January 2015. Since then 80-20 Investor has gone from strength to strength in terms of members and also in performance and the value it adds. Yet you may be aware that, prior to its official launch in January the Best of the Best Selection had been running since...

The post 80-20 Investor outperformance revealed appeared first on Money To The Masses.

]]>
80-20 Investor officially launched to DIY investors in January 2015. Since then 80-20 Investor has gone from strength to strength in terms of members and also in performance and the value it adds.

Yet you may be aware that, prior to its official launch in January the Best of the Best Selection had been running since the 1st August 2014. That means that we have just passed the 1st anniversary of the Best of the Best Selection. With a year's worth of real live data it is now possible to see how the Best of the Best Selection has fared.

80-20 Investor's outperformance

We produce the Best of the Best Selection as a shortlist of the best funds highlighted by our 80-20 Investor algorithm split into high, medium and low risk categories.

The green line in the chart below shows how a portfolio would have performed over the last year if it had been split equally between the Best of the Best Selection funds and then switched each month when each new shortlist was published. I have also charted the performance against that of the FTSE 100 (the black line) and the average balanced managed fund (red line) and the average managed fund with up to 85% equity exposure (blue line). In reality the 80-20 Investor's asset allocation typically lies between these two as it usually has 60-85% exposure to equities at any one time. So they provide a good comparison of how fund managers with a similar remit have fared over the same period.

As you can see in just 1 year the 80-20 Investor portfolio outperformed the average UK fund manager by between 3.68% and 5.85%!

If you compare it to the wider market (the FTSE 100) the 80-20 Investor Selection outperformed the market by 7.28% in just one year!

These are huge amounts in just one year and the extra growth would also be compounded over time the longer you invest. Also don't forget that during the last year we've endured market sell-offs spurred by concerns over global growth, a Chinese bear market as well as the Greek debt crisis. A return of 11.16% for the 80-20 Investor selection is quite incredible.

80-20 Investor performance

80-20 Investor boosted performance in 2 ways

The chart below is the same as the one above but with the addition of an orange line which shows what would have happened if you'd simply followed the 80-20 Investor Best of the Best Selection's asset allocation and ignored the actual funds it invested in. Or in other words simply picked random funds in the sectors that the 80-20 Investor Selection liked each month.

As you can see you would have once again beaten the average fund manager by just under 1% a year. That might not sound much but an extra 1% a year on a typical equity fund portfolio would mean that your portfolio would be worth 10% more in just 10 years.

So 80-20 Investor boosted performance in 2 ways 1) via asset allocation (the orange line) and then 2) by highlighting the best funds in those asset classes to be in (the green line).

asset allocation

What if you never reviewed your portfolio?

I am often asked how regularly you should review and change your funds. 80-20 Investor is designed so that members can use it how regularly they want. Some people review funds every month while others do so less frequently. So I decided to analyse what would have happened if you had bought the funds suggested in August 2014 and simply stuck with them for a whole year (the purple line) vs changing them each month (the green line once again).

1 year portfolio no change

The difference is 2.68% over the whole year. But there are a number of interesting observations to point out:

  • Regularly reviewing your portfolio boosted your performance
  • Yet even if you never reviewed your funds 80-20 Investor would still have boosted your returns so that you outperformed the market and the average fund manager!
  • In the early months the portfolio which was regularly reviewed actually underperformed in parts but the regular review eventually pulled you out of the bad investments and boosted your returns. This pattern will accentuate even more over time.

So this is proof that 80-20 Investor works for you however you choose to use it!

What would have happened if you had acted upon every stop loss alert?

80-20 Investor sends email alerts to members if a fund within the current month's shortlist falls by 5%. The purpose is to help avoid severe market corrections. The chart below shows the difference in performance between following every stop loss alert and completely ignoring them. Once again you would have outperformed the market and the average fund manager. So the stop loss meant that you secured the upside while limiting the potential loss from a significant correction. In reality in the last year we have not had a significant correction but if we had then the stop loss portfolio would likely have been the top performer.

You can think of the difference in performance between the two lines as the insurance premium for the downside protection.

stop loss

Why 80-20 Investor also works for small investors

Another question I am often asked is what is the minimum portfolio size to make an 80-20 Investor membership worthwhile. Well based on the last year's performance, if the above figures were reflective of the average membership then an additional outperformance of 5% over the market suggests that a portfolio size of just £5,000 would have been sufficient to benefit from an annual membership.

Claim your free trial of 80-20 Investor now

You can claim your FREE 30 Day FREE trail of 80-20 Investor here

How 80-20 Investor will help make you a better investor:

  • It's designed to help you make investment decisions in minutes (when you want) - letting you enjoy life
  • It will quickly tell you exactly what funds to buy and when with clearly displayed data, based on our unique algorithm.
  • 80-20 Investor will help protect your money from a market crash by telling you when to sell via email - NO ONE ELSE DOES THIS!
  • It does not matter where your existing investments are held (be it through the likes of Hargreaves Lansdown or otherwise). Anyone can use 80-20 Investor
  • You will also receive weekly & monthly newsletters
  • 80-20 Investor is independent & we analyse 1,000's of investment funds every week including unit trusts, investment trusts & ETFs
  • Regular exclusive research & market commentary which is regularly sought by the national press including The Times & The Telegraph
  • Access to regular DIY investment lessons. Lessons learned from a career in investment research & talking to fund managers, which are built into 80-20 Investor
  • 80-20 Investor members can even submit research requests to a leading investment expert. Think of it as having an investment expert in your pocket (the service is optimised for smartphones, tablets as well as laptops)
  • Access to see the holdings within our £50,000 portfolio which is run live on the site so you can see how we successfully run our own money

 

The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.
All performance figures are net of fund charges. The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy

The post 80-20 Investor outperformance revealed appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/saving-for-your-future/investing/80-20-investor-outperformance-revealed/feed 0
Diversification dilemma: How many funds should you buy per sector?http://moneytothemasses.com/8020-articles/diversification-dilemma-how-many-funds-should-you-buy-per-sector http://moneytothemasses.com/8020-articles/diversification-dilemma-how-many-funds-should-you-buy-per-sector#comments Thu, 20 Aug 2015 15:25:16 +0000 http://moneytothemasses.com/?p=20018 "Diversification is protection against ignorance. It makes little sense if you know what you are doing" - Warren Buffett How many funds should you have in a portfolio? Furthermore how many should you have within the same sector? These are two questions which most investment commentators shy away from. But in this article I will answer the...

The post Diversification dilemma: How many funds should you buy per sector? appeared first on Money To The Masses.

]]>

ID-10092879"Diversification is protection against ignorance. It makes little sense if you know what you are doing" - Warren Buffett

How many funds should you have in a portfolio? Furthermore how many should you have within the same sector? These are two questions which most investment commentators shy away from. But in this article I will answer the latter question and shed some light on the former. In doing so I will also expose some uncomfortable truths about the fund management industry.

It's war!

DIY investors need to accept that, despite the millions spent on marketing material trying to convince you otherwise, fund managers and the companies they work for don't care about their investors. The thing fund managers care about most is keeping their well paid jobs and their big houses. The fund management companies in turn care about how popular their funds are because the more money they have under management the more they earn from their percentage annual management charge.

Fund managers are benchmarked against their peers. In the world of fund management it doesn't matter how right or wrong you are but how you compare against your peers. If the fund managers lose their investors a lot of money from a bad judgement call then it doesn't matter too much (and they'll keep their jobs) as long as plenty of other fund managers have done as badly.

It's like being in a battle. Stick your head above the trenches (i.e doing something different) you risk getting shot. Your odds of survival are much better if you go 'over the top' as part of an army. Of course there are brave souls who have gone 'over the top' on their own and survived to tell the tale. Trailblazers who've entered folklore and become heroes. Fund management has them (Neil Woodford is one example) but just like legendary battle heroes sometimes their deeds become exaggerated and the true facts are lost or buried. For every manager that goes 'over the top' and returns a hero there are countless more who disappear to be never heard of again.

What this means is that fund managers tend to follow each other when constructing their portfolios. It's true that there are a finite number of companies out there in which to buy shares but there are almost an infinite number of ways to construct a portfolio from them. If you ever sit with a fund manager and discuss their portfolio you will hear them say things like "'I'm underweight financial stocks but overweight utilities."

This is in reference to their benchmark (i.e. the market). But while being aware of a benchmark is not necessarily a bad thing it does mean that decisions become based around it.

So does that mean that fund managers tend to copy each other to keep their jobs, so much so that their fund's holdings just end up mirroring each other? Or in other words do they charge a lot of money to 'actively' run it yet constantly seek to be average? The evidence shows that the answer to both these questions is 'yes'!

Fund managers only care about avoiding the sack and the best way to do this is to follow the herd.

Copycats and correlation

To see whether there is any evidence of this 'herding' going on I analysed the biggest fund sector (in terms of number of funds), to see how managers run their money. In the UK All Companies sector, which contains funds investing in UK companies, there are 248 funds.

It takes some doing but it is possible to track the average performance of all these fund managers over time. This average acts as a benchmark of what the herd is doing. Now if a fund manager is simply following the herd and simply concerned with keeping hold of his/her job then their performance will move up and down in line with the herd (the sector average).

If on the other hand a manager is trying to follow his/her own convictions, rather than the herd, then the movement in their performance will not occur in lock-step with the herd (sector average).

There is a statistical measure that exists to show whether two things follow each other or not and it is known as correlation.

You can work out whether two things are correlated by working out what is known as the correlation coefficient. It is complicated to work out but it is very easy to use. The correlation figure can range between -1 and 1. A figure of 1 would suggest that the two objects follow each other while a score of -1 suggests that as one rises the other falls and vice versa. A score of 0 means that the two assets are not correlated.

So I tested to see how correlated every fund manager's performance was with the sector average over the last 12 months. Or to put it another way I tested how much each fund manager simply followed the herd and copied what everyone else was doing.

The first table below (Table 1) shows how correlated each fund was to the herd. To make it easier to read I've concentrated on the larger funds which are those over £100m in size which reduces the number of funds to 163. In addition I've highlighted those funds that are simply herding in red, those that are making an attempt to be a bit different in orange while those following their convictions are in green.

What you will see is how much these managers simply follow the crowd. Of course there are a number of equity trackers in there (those run by computers to just match the FTSE 100) and these mostly appear in red. What it does highlight is that there are a lot of managers not doing much more than what equity trackers do. So why would you pay more to have a fund manager run a fund when he's not actively doing anything to add value?

The boundaries I've chose for each colour code are probably on the generous side to the fund managers. In truth many of the orange funds could have also been coloured red.

The point is that out of 163 funds only 33 (the green ones) could lay any kind of claim to be doing anything different from the herd

So most fund managers just follow the herd. To truly diversify a portfolio you need to pick fund managers that are doing different things and following their own convictions.

Is being different a good thing?

A fund manager being different is one thing, but does it make investors more money? If you scroll all the way down to Table 2 I have repeated the analysis in Table 1 but this time ranked the fund manager by their investment performance over the last 12 months.

The top performers are at the top and the worst performers are at the bottom. The sector average is in black. Immediately you will be struck by how the top performers tend to be those funds breaking away from the heard (i.e. in green). Around the sector average and below is a flood of red and orange.

The evidence shows that to increase your chances of outperforming the market then you need to invest in a manager that successfully backs his convictions otherwise you may as well just buy a tracker fund and settle for the market average.

Interestingly there are a few managers who have backed their convictions but their convictions have been wrong. An example is M&G Recovery which lost 4.39% over the last year when the average UK equity fund manager made 6.82%! That's a huge amount to be behind. Does that mean it is a terrible fund or that the manager is useless? Well no, it means his convictions were wrong or they don't suit the current market. The manager of that fund is a chap called Tom Dobell whom I've personally listened to talk about his strategy and holdings. He tends to pick undervalued companies and holds for the long term. He is also a former darling of the industry, previously topping the performance tables. However right now his strategy is not working. Industry commentators would argue that you should buy for the long term and stick with him. But why? Already in just 12 months you could have been 10% wealthier if you'd backed a manager who's strategy was working.

Do not feel obliged to reward a fund manager with your loyalty when he's already charged you for the privilege of losing you money. That's reward enough.

The optimum number of funds per sector

The evidence suggests that holding lots of funds within a sector means that you increase your chances of paying over the odds for average performance rather than outperforming the market.

By holding fewer funds you increase the chances of outperforming as your winners have a greater influence on your returns. Clearly that means that your losers also have a greater impact on your profits. The key is to diversify between managers who are not just following the heard. That increases your chances of picking a fund manager who will outperform and reduces the impact of any poor choices.

How many funds is the right amount. Well when I created the 80-20 algorithm I analysed the impact of holding any number of funds. The sweet spot between consistency of returns (i.e. a greater chance of outperforming at any time) and the size of the outperformance was between 3-5 funds a sector.

How do you pick the trail blazing fund managers to follow?

One way would be to do a similar correlation analysis as I've just done and then wittle down the funds to a potential shortlist before looking at how each manager is trying to invest their money. That would take days to do.

But there is an easy way. Take a look at those funds sitting at the top of the performance table (table 2) and coloured green. You will notice that they are the very funds that have regularly been highlighted by the 80-20 Investor algorithm in recent months for the UK All Companies sector. In fact a number of them appear in the current Best of the Best Selection.

In short the 80-20 Investor algorithm highlights funds that are working in the current environment and have a good chance of maintaining that momentum. That is those fund managers that have not only backed their convictions but whose convictions are correct.

Similarly if Tom Dobell's fortunes do turn around and his investment style starts to be rewarded our algorithm will highlight his fund long before everyone else starts backing him. You can then enjoy the ride upwards as remember every dog (and fund manager) has its day.

Table 1 - Following the herd

Funds coloured red are those following the heard. Orange funds are still heavily influenced by the herd while the funds in green are attempting to break rank.

Fund NameUK All Companies
AXA     Framlington UK Growth R0.99
F&C     Responsible UK Equity Growth 10.99
L&G     Ethical I0.99
Royal London   UK Equity A0.99
Schroder     MM UK Growth A0.99
Schroder     UK Alpha Plus A0.99
Scot Mut     UK Equity0.99
Scottish Widows   Multi-Manager UK Equity Focus A0.99
Scottish Widows   Multi-Manager UK Equity Growth A0.99
Threadneedle   UK Institutional 0.99
Threadneedle   UK   Inc 0.99
Aberdeen     Foundation Growth A0.98
Aviva Inv   UK Equity A0.98
BlackRock   350 UK Equity Tracker A0.98
BlackRock   UK Equity Tracker A0.98
BlackRock Invest Mgrs UK Ltd   Charishare Common Invest Gr0.98
CAF     UK Equitrack0.98
F&C     FTSE All Share Tracker 10.98
Fidelity     Index UK P0.98
Halifax     UK FTSE All Share Index Tracker C0.98
Henderson   UK Index A0.98
HSBC     FTSE All Share Index C0.98
Investec     UK Alpha A 0.98
JPM     UK Strategic Equity Income A0.98
L&G     (A&L) Capital Growth0.98
L&G     (N) Tracker Trust A0.98
L&G     UK Index R0.98
L&G     UK Select Equity A0.98
Old Mutual   UK Alpha A0.98
Old Mutual   UK Equity A0.98
Old Mutual   UK Index A0.98
Royal Bank of Scot   Growth0.98
Royal London   UK FTSE4Good Tracker Trust0.98
Santander   Premium UK Equity A0.98
Schroder     UK Equity A0.98
Threadneedle   UK Overseas Earnings Z Inc 0.98
Aberdeen     UK Enhanced Equity A0.97
Aviva Inv   UK Growth A0.97
Aviva Inv   UK Opportunities 10.97
AXA     General Trust R0.97
BlackRock   100 UK Equity Tracker A0.97
BlackRock   UK Special Situations A0.97
Fidelity     UK Select0.97
Halifax     Special Situations C0.97
Halifax     UK Growth C0.97
Henderson   UK Alpha A0.97
HSBC     FTSE 100 Index C0.97
L&G     UK 100 Index R0.97
Liontrust   Special Situations R0.97
Royal London   UK Growth Trust0.97
Santander   Stockmarket 100 Tracker Growth RA0.97
Schroder     The Growth Trust For Charities0.97
Scottish Widows HIFML   Special Situations 10.97
Scottish Widows HIFML   UK Growth 10.97
SJP     UK Growth0.97
Aberdeen     UK Equity A0.96
Barclays     UK Core A0.96
Halifax     UK FTSE 100 Index Tracking C0.96
HSBC     UK Focus A Inst0.96
HSBC     UK Growth & Income B 0.96
JOHCM     UK Dynamic B0.96
Jupiter     Growth & Income0.96
Kames     UK Equity A 0.96
Liontrust   UK Growth R0.96
Majedie     UK Equity A0.96
NFU Mutual   UK Growth A0.96
Royal London   UK Opportunities A0.96
Schroder     Core UK Equity A0.96
Schroder     UK Opportunities A0.96
SJP     UK & General Progressive0.96
SVM     UK Growth A0.96
Threadneedle   UK Growth & Income 0.96
Aviva Inv   UK Index Tracking 10.95
CF Canlife   UK Equity B0.95
EdenTree     UK Equity Growth A0.95
FP     Russell UK Growth Assets C0.95
Franklin     UK Managers' Focus A0.95
Henderson   UK Equity Income & Growth A0.95
Investec     UK Special Situations A 0.95
JPM     UK Dynamic A0.95
JPM     UK Managed Equity A0.95
Kames     Ethical Equity A0.95
M&G     Index Tracker A 0.95
Old Mutual   Equity 2 A0.95
Premier     Ethical A0.95
Royal London   UK Growth A0.95
Santander   UK Growth RA0.95
SSgA     UK Equity Tracker0.95
Threadneedle   UK Select   0.95
Vanguard     FTSE U.K. All Share Index A 0.95
AXA     Framlington UK Select Opportunities R0.94
BlackRock   UK A0.94
EdenTree     Amity UK A0.94
Family     Charities Ethical0.94
FP     CAF UK Equity A0.94
Henderson   Global Care UK Income A0.94
JOHCM     UK Opportunities B0.94
Jupiter     UK Special Situations0.94
Premier     UK Growth A0.94
R&M     UK Equity High Alpha A0.94
Scottish Widows   UK Growth A0.94
Standard Life Investments   UK Equity Growth 0.94
Virgin     UK Index Tracking0.94
Artemis     Capital R0.93
Artemis     UK Growth R0.93
Invesco Perpetual   UK Strategic Income 0.93
JPM     UK Strategic Growth A0.93
L&G     Growth E0.93
Marks & Spencer   UK Select Portfolio0.93
Schroder     Charity Equity A0.93
Schroder     Income A0.93
Scottish Widows   UK Tracker G0.93
SJP     UK High Income0.93
Standard Life Investments   Ignis Balanced Growth A0.93
Barclays     UK Alpha A0.92
BlackRock   Mid Cap UK Equity Tracker A0.92
Fidelity     UK Growth0.92
HSBC     FTSE 250 Index C0.92
Invesco Perpetual   Childrens0.92
Invesco Perpetual   Income & Growth0.92
Invesco Perpetual   UK Growth0.92
Majedie     UK Focus A0.92
Marks & Spencer   UK 100 Companies0.92
Alliance Trust   Sustainable Future UK Growth 10.91
Fidelity     Moneybuilder Growth0.91
Invesco Perpetual   High Income0.91
Invesco Perpetual   Income0.91
Man GLG     Undervalued Assets Professional C0.91
R&M     UK Equity Long Term Recovery A0.91
Alliance Trust   UK Ethical A0.9
BlackRock   UK Focus FF0.9
M&G     UK Growth A 0.9
Old Mutual   UK Mid Cap A0.9
Royal London   UK Mid-Cap Growth A0.9
SVM     UK Opportunities A0.9
Architas MM   UK Equity A0.89
Old Mutual   Equity 1 A0.89
Standard Life Investments   UK Ethical 0.89
AXA     Framlington UK Mid Cap R0.88
Baillie Gifford   UK Equity Alpha A0.88
Fidelity     Special Situations A0.88
GAM     UK Diversified 0.88
Invesco Perpetual   UK Aggressive0.88
Newton     UK Equity 0.88
Artemis     UK Special Situations R0.87
L&G     UK Special Situations I0.87
Newton     UK Opportunities0.87
Standard Life Investments   UK Equity Unconstrained 0.86
Standard Life Investments   UK Opportunities 0.86
M&G     Recovery A 0.85
Jupiter     UK Growth0.84
Franklin     UK Mid Cap W 0.83
Man GLG     UK Select A ail0.82
Schroder     Recovery A0.82
SJP     Equity Income0.81
Threadneedle   UK Mid 250 0.8
Royal London   Sustainable Leaders Trust C 0.79
MFM     Slater Growth0.75
Cavendish   Opportunities A0.73
Neptune     UK Mid Cap A0.7
CF     Miton UK Value Opportunities A 0.69
L&G     UK Alpha I0.69
Schroder     UK Mid 250 A0.68

 

Table 2 - It pays to be different

Fund Name1 year return %
Old Mutual   Equity 1 A31.77
Old Mutual   UK Mid Cap A30.19
CF     Miton UK Value Opportunities A 24.49
Threadneedle   UK Mid 250 22.62
Neptune     UK Mid Cap A22.03
Franklin     UK Mid Cap W 21.72
Standard Life Investments   UK Opportunities 19.74
AXA     Framlington UK Mid Cap R19.4
Franklin     UK Managers' Focus A19.18
Royal London   UK Mid-Cap Growth A18.97
Standard Life Investments   UK Ethical 18.58
MFM     Slater Growth18.32
SVM     UK Growth A17.98
Alliance Trust   UK Ethical A17.19
Jupiter     UK Growth16.54
Alliance Trust   Sustainable Future UK Growth 116.53
EdenTree     UK Equity Growth A16.21
Newton     UK Equity 16.09
Premier     Ethical A16.06
Newton     UK Opportunities15.96
Henderson   Global Care UK Income A15.69
Fidelity     UK Select15.55
Kames     Ethical Equity A15.36
Royal London   Sustainable Leaders Trust C 15.18
HSBC     FTSE 250 Index C14.44
Standard Life Investments   UK Equity Unconstrained 14.36
Fidelity     Moneybuilder Growth14.23
BlackRock   Mid Cap UK Equity Tracker A14.21
L&G     UK Special Situations I14.04
L&G     Ethical I13.91
JPM     UK Dynamic A13.9
Invesco Perpetual   UK Strategic Income 13.61
Invesco Perpetual   High Income13.49
EdenTree     Amity UK A13.24
Artemis     UK Growth R13.2
Invesco Perpetual   Income12.98
Fidelity     Special Situations A12.95
Henderson   UK Alpha A12.79
Majedie     UK Focus A12.75
Threadneedle   UK Select   12.04
SVM     UK Opportunities A11.86
Schroder     UK Mid 250 A11.57
BlackRock   UK Focus FF11.52
JPM     UK Strategic Growth A11.03
Standard Life Investments   Ignis Balanced Growth A11.01
Premier     UK Growth A10.8
Kames     UK Equity A 10.76
Man GLG     Undervalued Assets Professional C10.48
Cavendish   Opportunities A10.46
SJP     UK High Income10.1
CF Canlife   UK Equity B10
F&C     Responsible UK Equity Growth 19.93
Royal Bank of Scot   Growth9.63
Artemis     Capital R9.22
BlackRock   UK A9.21
L&G     Growth E9.13
Threadneedle   UK Growth & Income 9.09
Aviva Inv   UK Equity A9.05
Invesco Perpetual   Income & Growth8.96
Fidelity     UK Growth8.76
Aviva Inv   UK Opportunities 18.63
Investec     UK Alpha A 8.44
Threadneedle   UK   Inc 8.11
HSBC     UK Growth & Income B 8.05
Royal London   UK Growth Trust7.96
Threadneedle   UK Overseas Earnings Z Inc 7.88
FP     CAF UK Equity A7.78
BlackRock Invest Mgrs UK Ltd   Charishare Common Invest Gr7.74
Liontrust   Special Situations R7.61
BlackRock   UK Special Situations A7.54
HSBC     UK Focus A Inst7.41
JOHCM     UK Opportunities B7.23
Royal London   UK Opportunities A7.08
Man GLG     UK Select A ail7.01
SJP     UK & General Progressive6.86
Liontrust   UK Growth R6.82
UK All Companies ail6.82
Scottish Widows   Multi-Manager UK Equity Focus A6.68
JPM     UK Strategic Equity Income A6.61
Scot Mut     UK Equity6.61
Schroder     UK Equity A6.59
Architas MM   UK Equity A6.55
Barclays     UK Alpha A6.5
Aviva Inv   UK Growth A6.47
Majedie     UK Equity A6.45
AXA     Framlington UK Select Opportunities R6.18
Baillie Gifford   UK Equity Alpha A6.15
Standard Life Investments   UK Equity Growth 6.13
Invesco Perpetual   Childrens6.12
Jupiter     Growth & Income5.96
AXA     Framlington UK Growth R5.8
Schroder     Income A5.69
Invesco Perpetual   UK Growth5.65
JOHCM     UK Dynamic B5.59
Threadneedle   UK Institutional 5.58
AXA     General Trust R5.51
FP     Russell UK Growth Assets C5.39
Santander   Premium UK Equity A5.38
Schroder     Charity Equity A5.38
M&G     UK Growth A 5.35
SJP     UK Growth5.35
Scottish Widows   Multi-Manager UK Equity Growth A4.82
Henderson   UK Equity Income & Growth A4.78
Jupiter     UK Special Situations4.63
R&M     UK Equity High Alpha A4.54
GAM     UK Diversified 4.52
Old Mutual   UK Equity A4.22
Royal London   UK Equity A4.21
L&G     UK Select Equity A4.15
Marks & Spencer   UK Select Portfolio4.14
Artemis     UK Special Situations R4
SJP     Equity Income3.94
Schroder     UK Alpha Plus A3.65
Old Mutual   Equity 2 A3.62
Schroder     MM UK Growth A3.4
Santander   UK Growth RA3.19
Old Mutual   UK Index A3.14
BlackRock   350 UK Equity Tracker A3.06
SSgA     UK Equity Tracker3.02
HSBC     FTSE All Share Index C2.96
Investec     UK Special Situations A 2.81
Vanguard     FTSE U.K. All Share Index A 2.79
Fidelity     Index UK P2.78
JPM     UK Managed Equity A2.77
Royal London   UK FTSE4Good Tracker Trust2.77
CAF     UK Equitrack2.68
M&G     Index Tracker A 2.65
L&G     UK Index R2.63
F&C     FTSE All Share Tracker 12.6
BlackRock   UK Equity Tracker A2.59
Old Mutual   UK Alpha A2.53
Scottish Widows HIFML   UK Growth 12.36
Barclays     UK Core A2.31
Henderson   UK Index A2.31
Scottish Widows   UK Growth A2.29
Royal London   UK Growth A2.2
Invesco Perpetual   UK Aggressive2.04
Halifax     UK FTSE All Share Index Tracker C2.02
Aviva Inv   UK Index Tracking 11.95
Halifax     UK Growth C1.91
L&G     (N) Tracker Trust A1.91
Aberdeen     Foundation Growth A1.85
L&G     (A&L) Capital Growth1.5
Schroder     Recovery A1.11
Virgin     UK Index Tracking1.11
Marks & Spencer   UK 100 Companies1.02
Schroder     UK Opportunities A0.86
NFU Mutual   UK Growth A0.85
Scottish Widows   UK Tracker G0.66
R&M     UK Equity Long Term Recovery A0.57
L&G     UK 100 Index R0.53
HSBC     FTSE 100 Index C0.44
Aberdeen     UK Enhanced Equity A0.43
Santander   Stockmarket 100 Tracker Growth RA0.29
BlackRock   100 UK Equity Tracker A0.16
Family     Charities Ethical-0.11
Halifax     UK FTSE 100 Index Tracking C-0.31
Aberdeen     UK Equity A-0.73
L&G     UK Alpha I-1.08
Schroder     The Growth Trust For Charities-2.24
Scottish Widows HIFML   Special Situations 1-2.57
Halifax     Special Situations C-2.58
M&G     Recovery A -4.39
Schroder     Core UK Equity A-4.98

 

 

(image by dan via freedigitalphotos.net)

The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

 

The post Diversification dilemma: How many funds should you buy per sector? appeared first on Money To The Masses.

]]>
http://moneytothemasses.com/8020-articles/diversification-dilemma-how-many-funds-should-you-buy-per-sector/feed 0