Well a all share tracker doesn't really have a crack team of managers to pay to select shares and sell them as they see fit,it will physically track by holding the companies within the all share index.kellys_eye wrote:and that's the crux of the issue for me. Unless you have confidence in your portfolio managers removing the stocks/shares before any (the) collapse then you 'might' be ok.stevegrass777 wrote:.... as long as the charges are low and the investment is good.
History tends to show that such management is rare, particularly since they don't run any personal risk themselves, and you could end up with nothing.
Some would still insist in precious metals as the only real safe place to keep your wealth.
This is the top 600 companies listed on the LSE by market value,so automatically the bottom companies will fall off and new companies will enter,I think this happens twice yearly.
This is the long term chart.
http://stockmarketalmanac.co.uk/wp-cont ... 0-2013.png
With the all share rather than buying a player your buying the field,so it doesn't really matter if a company doesn't do well because eventually it will be replaced with a better one.So as a holder of the all share you would be a part owner of all these business and will receive income via dividends and reinvest these dividends to compound over the years so you have a ever increasing share.
Here are the constituents
I can see that precious metals can be a better holding than cash but it's hard to say they are better than income producing shares/companies there is a argument that precious metals can form part of your portfolio as a hedge against market falls and you can rebalance every year or use % triggers to rebalance and this can be a good way to invest.
But on its own Gold (I will take this as it's the most popular metal) costs money to store and gives no income,it is pretty but if you own a big gold bar in ten years you will still own a big gold bar,it won't grow at all it will stay the same,
It could probably be exchanged for more paper money than was paid originally,but will most likely not equal the amount that income producing assets like shares produce over the long term.
It's best use is a hedge and to rebalance shares,so to compliment rather than a replacement.