Sunday 23 Jul 2023
Ready-made Investment Fund Returns
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I came across the website Boring Money (https://www.boringmoney.co.uk/) and was intrigued read their articles on the market returns for the last 2 years between high-, medium- and low-risk ready-made investment funds. Essentially, this website looks into the top multi-asset funds across the UK to determine which preformed the best within its compatible category.
The most shocking to me, but not surprisingly, was the returns of the medium- and low-risk funds. When an investor thinks low risk, they assume no loss of capital in favour of lower returns. But, in the last two year, these funds have lost capital. This is due to central banks raising interest rates resulting in existing bonds reducing in value. As these funds are heavy in bonds, this resulted in the losing value.
My investments are high risk containing 100% global stocks. However, I do not consider my investment “high risk”; I consider it to be high volatility, that is great swings to the positive and negative.
In the high risk category, over 2 years, the Vanguard LifeStrategy 100% fund returned 6.86%; medium-risk funds (LifeStrategy 40%) -8.65%; the low-risk fund (LifeStrategy 20%) in the same period returned -12.90%.
Explore the articles in detail as the have a beautiful chart and table explaining all.
Backlinks:
Journal:Index
Journal:2023:07