Question
I have a Scottish Widows uk growth ISA which has never realy done anything I am thinking of changing it to Invesco Perpetual Income or the new launch Marlborough multi cap income fund. What do you thinkAnswer
I think changing to another fund is a good idea, as the Scottish Widows UK Growth fund performance has consistently been below average. Although Scottish Widows has changed managers on the fund several times over the years, this doesn't seem to have improved matters.
If you're fairly pessimistic about the economic outlook then Invesco Perpetual Income fund (or its sister High Income fund) looks a sensible choice. Manager Neil Woodford is fairly defensive with large holding in pharmaceutical, tobacco and telecoms companies - all of which should weather a downturn better than most (because consumer spending on healthcare, cigarettes and telephone calls tends to be unaffected by recession). These types of company also pay decent dividends, which can help boost returns (or reduce losses).
The Marlborough Multi Cap Income fund is arguably higher risk, as it'll have a higher exposure to smaller companies. Manager Giles Hargreave has an excellent track record over his long career and I don't doubt his ability, but his investment style is more aggressive than Neil Woodford's - while I think Hargreave might make you more money over 10+ years, there's probably greater scope to lose money shorter term.
Whatever you decide I'd suggest making the transfer via a discount broker that rebates trail commission, as this could save you a significant sum over time. Take a look at Guide to ISA Discount Brokers for more info.
I have a Scottish Widows uk growth ISA which has never realy done anything I am thinking of changing it to Invesco Perpetual Income or the new launch Marlborough multi cap income fund. What do you thinkAnswer
I think changing to another fund is a good idea, as the Scottish Widows UK Growth fund performance has consistently been below average. Although Scottish Widows has changed managers on the fund several times over the years, this doesn't seem to have improved matters.
If you're fairly pessimistic about the economic outlook then Invesco Perpetual Income fund (or its sister High Income fund) looks a sensible choice. Manager Neil Woodford is fairly defensive with large holding in pharmaceutical, tobacco and telecoms companies - all of which should weather a downturn better than most (because consumer spending on healthcare, cigarettes and telephone calls tends to be unaffected by recession). These types of company also pay decent dividends, which can help boost returns (or reduce losses).
The Marlborough Multi Cap Income fund is arguably higher risk, as it'll have a higher exposure to smaller companies. Manager Giles Hargreave has an excellent track record over his long career and I don't doubt his ability, but his investment style is more aggressive than Neil Woodford's - while I think Hargreave might make you more money over 10+ years, there's probably greater scope to lose money shorter term.
Whatever you decide I'd suggest making the transfer via a discount broker that rebates trail commission, as this could save you a significant sum over time. Take a look at Guide to ISA Discount Brokers for more info.
Read this Q and A at http://www.candidmoney.com/questions/question505.aspx
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