Thursday, 29 September 2016

Performance Of UK Income Fund Managers

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When you are investing, it is quite difficult to know how well your particular approach is working out. This is why, in the past, as a DIY Income Investor I have looked at various benchmarks related specifically to income investing, as opposed to the other investment strategies.

So, imagine my interest in a comparison of the performance (over five years) of the 'best' professional income fund managers...

Tuesday, 6 September 2016

So, You Think You Know What You're Doing?

“ Auguste Rodin (French, 1840-1917), The Thinker
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It is quite amazing how faulty our human thinking processes can be.

If you are interested in the distortions - or biases - that we regularly come up with, take a look at this article. See how confident you feel after you have read it!


Friday, 19 August 2016

London's High Yield Dividend ETFs

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Investors Chronicle recently (June 2016) published an interesting review of high yield dividend ETFs (Exchange Traded Funds) offered on the London Stock Exchange (there are now, apparently over 30!). I say 'interesting' because there were a few I hadn't heard of.

One of the problems for DIY Income Investors interested in income-producing ETFs is that there is no easy source for the ranking of yield of different ETFs - you have to just hunt around.

Thursday, 11 August 2016

I'm an Investor - Get Me Out Of Here!

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Choosing the right investment is hard work. You need to read up on the company, look at the accounts and set the activity against what you know (or think you know) about the wider market. However, I find that selling is even harder than buying.

Share prices go down as well as up. What should you do when this happens? Should you sell? If so when? Here's what I do - but be aware that it doesn't work all the time!

Wednesday, 10 August 2016

Try, Something New (Portfolio Buy)

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The DIY Income Investor portfolio continues to storm ahead in (Sterling) value at the moment. It feels somehow strange - but reassuring.

Having become a bit bored by just topping up existing holdings, I decided to try something new...

Wednesday, 3 August 2016

Tax Strategy (UK)

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Paying tax is your legal duty, as your civic contribution to paying for the goods and services the local and national governments provide. The range of taxes we pay is quite wide - almost anything we do incurs some kind of taxation.

However, a large number of tax allowances are available for savers and investors. One way of looking at these allowances is that they are intended as 'incentives' to encourage certain types of financial behaviour. It seems to me that, as good citizens, we should respond to these incentives where they are offered. In other words, tax avoidance is (almost) virtuous - helping the government achieve its objectives.

Wednesday, 27 July 2016

Splashing the Cash (Portfolio Buys)

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Cash sitting idle is no part of an investment strategy - it should be producing capital gain or income, one way or another.

A key feature of the DIY Income Investor approach is that it throws off a lot of cash. Add to this any additional ISA or SIPP contributions and there is enough to gradually re-shape and re-direct the portfolio.

Monday, 4 July 2016

More of the Same (Portfolio Buy)

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A lovely summer and the DIY Income Investor portfolio is up 19% (total return, including income and capital gain) so far in 2016. What's not to like?

I'm getting lazier than ever and with two ISA contributions to invest (in different family accounts, of course), I'm going to keep it as simple as possible.

The Benefit of Diversification

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Forewarned is forearmed. Investment in the stock market IS risky (compared to holding cash...) - and the risks are not always obvious. The DIY Income Investor portfolio is a case in point: it 'gambles' (not too strong a word) on the possibility that the market is over-pessimistic about certain securities (i.e. those with high yields).

But - as recent political and market events have shown - that is only the start of the process of dealing with risk. So how has the 'risky' DIY Income Investor portfolio weathered the storm?

Sunday, 29 May 2016

Danger, Danger! (Portfolio Buy) - Updated

https://www.youtube.com/watch?v=OWwOJlOI1nU
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The basic idea behind the DIY Income Investor is to take advantage of Mr Market's manic-depressive reaction to bad news - whilst collecting a nice income for your trouble. In other words, I buy high-yield securities that the market has marked down because there is a potential problem that may, or may not materialise.

The difficulty, of course, is judging whether the risk is worth it...