Quantcast
Menu Off Menu On

Should I sell my Fundsmith investment fund shares now or leave it & diversify into another fund?

Peter | Stockport| 18/03/2019 | 0

  • Funds

Peter's question in full

My Fundsmith accumulation Class 1 investment fund has done well over the last 5 years, and its share price today is 412, which is just about the highest it's ever been. Should I bank it now (£ 80,000.00) in case it goes down, or leave it and diversify by reinvesting my £800.00 per month elsewhere in another fund? Many thanks, Peter

Holly Mackay's Response

Hi Peter,

That’s a hard one.

You’re displaying a typical behavioural finance conundrum - we hate loss twice as much as we like gains!

I think the questions you need to ask yourself are:

Do I need the money or am I still investing for the long term (i.e. at least 5 years)?
Everything could go down - gawd knows what the UK or global economies will do over the short-term quite frankly!

But have you seen anything to make you think that Terry Smith has lost his mojo?

Every dog has its day and styles come and go. But have you seen anything in particular to make you think that Fundsmith is looking less appealing?
If not - why sell now?

You could look at the top 10 holdings in this fund and compare them to other funds you hold?

Are they all the same? Are you properly diversified? If you are doing regular top-ups is this going into a range of regions and styles?

If it’s all going to Fundsmith then you are very exposed to one group and set of individuals.

It’s not an all or nothing decision

Maybe split the top-ups amongst a handful of funds so you have a bit more diversification?

This will be easier to do on an investment platform and not trying to go direct to fund managers.


Sorry - I’ve replied with questions not a direct answer. But I can’t read the future. What I can do is help suggest that you minimise your risk, and that will come with a broader spread of funds and regions.

Hope that helps a bit,
Holly

Just be aware...

We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA. 

This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.

We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.

Our Expert

Holly - 066.JPG

Holly Mackay

Founder and MD of Boring Money, Holly Mackay has been working in the investments space since 1998. She read Modern Languages at Oxford, with a special focus on Mediaeval French which was deeply interesting and arguably utterly useless.

Related Questions

Got a Question?

  • We currently have a Scottish Mortgage fund with Baillie Gifford. But we’ve received a letter stating that they plan to transfer us to Hargreaves Lansdown. Is this a good idea or should we look elsewhere? - Charles Stanley Direct, for example?

    Matthew | London | 30/05/2019 | 4

    • Funds
    Holly Mackay's Response

  • I have minimal pensions and would like to start a new pension to save for the next 12 years. I've already set up a Stocks & Shares ISA with Nutmeg, so would like to start my pension with another provider. Which would you recommend?

    Sam | Norfolk | 30/05/2019 | 0

    • Private Pension
    • Funds
    Holly Mackay's Response

  • I’m thinking about investing £1000 in Sirius Minerals. I would like some advice on whether this is too small an amount to get any gains from. At the moment I would be leaving it in for the long term of 5-10 years. I do realise that no dividend is being paid.

    Adam | Cleveland | 30/05/2019 | 0

    • Shares
    • Funds
    Holly Mackay's Response

  • My parents (father since died) put money into Halifax 'Money Fund'. This then apparently changed to some form of 'investment'. I noted in January 2019, that a letter had been sent just under 3 years previously, advising that this was not the best place for their money. I made contact and complained. What can we do, as this money may as well have been under their mattress? It was originally mis-sold.

    Maureen | Gloucestershire | 04/04/2019 | 0

    • Funds
    Helena Wardle's Response

  • I've been reading recently about how investment trusts are much the same as funds, but are cheaper to own. A: Is this true? and B: Do you have an article on Investment trusts on your site?

    Nick | Surrey | 16/01/2019 | 2

    • Funds
    • Other
    Phoebe Smith's Response

  • Hello, I really enjoy your website and find it useful and concise. My question is, what is meant by long term savings? I am 54, so what should I consider to be an appropriate time frame for any investment I make, that could supply the best results?

    Jennifer | Essex | 16/01/2019 | 10

    • Online Investment Platforms
    • Funds
    • Pension
    Anna Sofat's Response

  • I’ve been investing in Nutmeg’s Risk 10 profile for three years which helped my deposit for my house. I am now wondering whether to use Nutmeg again, or should I use LifeStrategy for my £1000 per month? Is there a difference between Vanguard's LifeStrategy option and let’s say a well known robo adviser like Nutmeg? I am still a beginner and would like to keep things simple, but happy to take risk and prepared to leave my investments for a long time.

    Jordan | Surrey | 26/11/2018 | 9

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Phoebe Smith's Response

  • I was lucky enough to inherit a significant sum from my father... currently in Alliance trust platform in 10 investment trusts. They have delivered well in the last 20 years. But they are UK equity based. And highly risky. Do you offer a sanity check service for confused individuals like myself? I don’t know what to do...

    Paul | Berkshire | 12/11/2018 | 2

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I am 25 and starting to seriously financially plan out my future. I would really welcome a 'sense check' on my thinking as well as some help on which investment choices to make. My goals are: To invest for 15 years - my risk appetite is very high (i.e. I could afford to lose all my money). Goal 1 - More Important: To have an investment pot of £1,500,000. Goal 2 - Less Important: To be mortgage free. My plan is: 1) Open an annual Stocks and Shares ISA each of the next 15 years. 2) Open Share trading/dealing account. 3) Reduce my mortgage term to 6 years by 2025. I appreciate the above is a lot to go though, but I'd welcome any help and guidance.

    Mo | London | 15/10/2018 | 3

    • Stocks and Shares ISA
    • Shares
    • Online Investment Platforms
    • Funds
    • Other
    Holly Mackay's Response

  • Can you advise me on the best approach when looking to invest in a product that offers compound interest? I’m thinking about funds rather than bank accounts. I also have 4 different pensions on the go. Should I keep them separate to diversify the risk? Or consolidate them? How will these pensions be treated when I retire? Will they be considered in aggregate by the tax man?

    Craig | Clackmannanshire | 16/08/2018 | 1

    • Private Pension
    • Online Investment Platforms
    • Funds
    Helena Wardle's Response

  • I have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. I was planning to transfer the remaining one third to Charles Stanley Direct. However the recent platform price increases seem to put me in the worst position possible. After Charles Stanley Direct's fee increase, could I do better elsewhere?

    Gerry | Bedfordshire | 15/08/2018 | 6

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I invested my money in a St James's Place managed fund, split into ISAs and bonds, after advice from an adviser who was a St James's Place partner. My investments have done reasonably well, but I've read disturbing reports about St James's Place. Should I have concerns? Should I have found an independent financial adviser?

    Glyn | Essex | 09/08/2018 | 6

    • Funds
    Holly Mackay's Response

  • I wanted an investment trust with an income, so I put £10,000 into The Investment Company. It delivers a reliable quarterly dividend but the capital value has dropped by 10% since I invested 2 years ago. What are your favourite investment trusts?

    Fran | Greater London | 08/08/2018 | 4

    • Shares
    • Funds
    Mark Dampier's Response

  • Is there an average number of funds that one should ideally hold? I have in excess of 20. I am happy with my portfolio and coverage, but wonder if I have too many funds. The second part to the question is how long should you leave an underperforming fund?

    Richard | Hertfordshire | 06/08/2018 | 3

    • Funds
    Holly Mackay's Response

  • I am 73 and cautious. There are two areas that your advice would be helpful..what if you just spend thousands on buying the gold standard footsie companies like shell and the rest and keep them for five years and then cash them in ?

    DB | UK | 24/07/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    • Pension
    Holly's Response

  • I hope you can help. I recently consolidated two modest pensions into a SIPP in readiness to start UPFLS drawdown in May (2018). Whilst I was hoping for growth in my investments I wasn’t expecting it to rocket and now find I could well be looking at exceeding the lifetime allowance, possibly even before my first annual drawdown in May, and I’m unsure what, if anything, I should do.

    John | London | 03/07/2018 | 2

    • Private Pension
    • Funds
    Richard Allum's Response

  • What are the differences between income and accumulation income funds? How do you declare income reinvested in a fund on your tax return?

    C | 05/06/2018 | 0

    • Funds
    Helena Wardle's Response

  • Can you recommend some very basic books for a 69-year-old widow who is now having to manage her money?

    Martha | 12/04/2018 | 0

    • Shares
    • Funds
    Helena Wardle's Response

  • Hi, I've got an old D.B. pension, approximate value £12k. I would like to invest & top up each month. Who would you recommend? Also I would like to make an investment, & don't know where to start? Thanks

    Eve | 04/04/2018 | 5

    • Funds
    • Pension
    Helena Wardle's Response

  • I am post-divorce with a good settlement which I have only partially invested. Are there any courses you can recommend? I have sat in a number of meetings with accountants and financial advisers feeling somewhat patronised! I am sure that there are plenty of women in a similar position to me (aged 55!).

    Eavan | Ireland | 14/03/2018 | 3

    • Shares
    • Funds
    • GIA
    Holly Mackay's Response

  • How can I find a good financial adviser?

    Byron | Greater London | 01/03/2018 | 0

    • Shares
    • Funds
    Holly Mackay's Response

  • We have four grandchildren (2 English living in UK, and 2 Irish living in Eire). We have decided to start savings plans for their futures. Their ages are 18yrs, 11yrs, 8yrs and 4yrs respectively. My age is 75yrs, and my wife is a little older. What should we do, please?

    John | Buckinghamshire | 01/01/2018 | 1

    • Junior ISA
    • Lifetime ISA
    • Shares
    • Funds
    • Inheritance
    Martin's Response

  • Given the recent poor performance in Woodford Equity Income, do you think I should sell it or wait for the fund to recover?

    Jenna | Cornwall | 17/12/2017 | 3

    • Funds
    Boring Money's Response

  • I am getting long in the tooth at 79, a little forgetful and I am going through a painful divorce. This has shattered my confidence and I need help.

    Richard | Kent | 05/11/2017 | 3

    • Private Pension
    • Funds
    Holly Mackay's Response

  • I have just sold my house and have a significant sum of money I want to invest. I may want to draw some income but also want to achieve capital growth. Are there funds that aim to achieve both or should I just invest for growth and draw money as I need to for income?

    Jon | Surrey | 13/09/2017 | 1

    • Funds
    Peter Matthew's Response

  • I am interested in the Fund piece that Holly refers to in today's Money Supplement in the ST’s with 'Lindsell Train Global Equity'. I am looking for a fund for myself (54 yrs old) but also my son (19 yrs old). Is this fund suitable for either of us with an investment strategy of 10 years +.

    Richard | 22/01/2017 | 0

    • Funds
    Holly Mackay's Response

  • I am confused about index funds, e.g. Vanguard Equity fund. Do they track an index or include the yield? In the case of Vanguard, their low cost is attractive but their portfolio is made up of other Vanguard funds. I assume these probably each carry a fee structure - is this correct?

    Robin | Gloucestershire | 03/09/2018 | 0

    • Online Investment Platforms
    • Funds
    Boring Money's Response

  • Is it worth using a financial adviser when it comes to switching pensions funds, or should I do the research and pick the funds myself? I am no expert in stocks and shares.

    Helen | Dorset | 10/08/2018 | 4

    • Private Pension
    • Shares
    • Funds
    Helena Wardle's Response

  • I am looking for a fund for myself (54 yrs old) but also my son (19 yrs old). Is this fund suitable for either of us with an investment strategy of 10 years +.

    | 29/05/2018 | 3

    • Robo Adviser
    • Funds
    Holly Mackay's Response

  • I use H&L and although they are a bit 'plumy' on the phone I quite like their website and the costs are OK. So I was thinking of H&L for [my son]. I would be telling him to open these two funds and regularly invest and forget about them for 10 years!

    R | Greater London | 29/05/2018 | 1

    • Lifetime ISA
    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • Given the recent poor performance in Woodford Equity Income, do you think I should sell it or wait for the fund to recover?

    Jenna | Cornwall | 29/05/2018 | 10

    • Funds
    Boring Money's Response

  • I have a bit of excess money to play around with and I have been looking at Investment funds. What is the typical % growth rate of an investment fund?

    David | Greater London | 07/09/2017 | 7

    • Online Investment Platforms
    • Funds
    Cherry Reynard's Response

  • What funds could my millennial children invest in?

    Anthony | Greater London | 06/09/2017 | 2

    • Funds
    Holly Mackay's Response

Got a question? Ask our experts

Ask Our Experts

Sign up for Holly's blog

Stay up to date

Our free weekly blog with Holly's
no-nonsense opinions, tips & food for thought.
If you change your mind, you can unsubscribe at any time.