I continue to love the simplicity of this ISA – fire and forget, no worries about individual shares, it just does what the market does! This really is the ultimate in easy investing for me – virtually no fees (Ok, £1.50 for the trade), no ongoing charges. Bliss!
For the full details over all of the portfolios as a summary please refer to the full month end report – this is specifically looking at what has happened on the Go T’ Pub portfolio only.
So, what activity did we have this month?
- New Funds added. As always, the regular contribution of £1,100 has gone in however I added an additional £140 to this, taking it up to £1,240 as I wanted to put as much as possible into the tax shelter – further reducing my cash reserves
- No dividends were paid out sadly, so no income generated
- No withdrawal was made
- Left over cash from the previous purchases was left in
So once again a very quiet month just ticking along and the number of units keep ticking up.
Overall performance: The starting value was £16,451.84, with £1,240 in new funds added, and £0 withdrawals, meaning total starting value was £17,691.84. We finished the month on £17,206.75 so the total performance across the whole portfolio was -2.74%.
Ok so it went down – that just means more chance of more VWRL 🙂
So, lets get into the detail…..
So the standard units were purchased – however with the extra cash meant that I could purchase a further 20 units at £60.09 per unit, making the average cost per unit of £61.50. So it just keeps ticking along and increasing the number of units which all helps!
I did do a spreadsheet showing how many VWRL I would have on the assumption of 18 each month, so an extra 2 will give me about an extra 50p each quarter. Not to be sniffed at!
So – how does this now look as the graph data slowly builds up?
So after all the great hope and showing value going above contributions it is wiped out in one month and drops below my contributions. Oh well, it is early days and why you so often read literature saying you should be invested for at least 5 years!
It has finally ticked over the 200 units now so I am hoping that the dividend will kick in next month and hopefully be close to £50 but I will wait and see. I will resist using it as beer tokens and aim to reinvest it!
Cash vs. Investment Trust
So for me this was the more interesting part of the overall approach – I transferred 50% of my last remaining cash ISA over to an IT and will be tracking the two together to see how things perform. Remember – you really, REALLY shouldn’t do this. Keep cash on hand, be able to sleep knowing your bills would be covered etc.
So, how is it looking?
|Cash||Now stands at £5,128.44|
|S&S ISA IT||Now stands at £5,106.00|
It looks like my Cash ISA rate has been increased as there was a huge payment again this month – so much so that the graph line even seems to have moved a bit! The CTY seems to be suffering, even with an additional 12 units from the last dividend. Not ideal by any stretch, and further evidence that you should NOT do this approach.
Whilst I view this as disappointing, things have been on a tear, and as I continue to reinvest the dividends it won’t take long to go back above. Of course, this is reliant on me not needing the cash – if you had to sell out this would hurt.
How does the rollercoaster look now? Well, very much like this:
Slowly pulling back up to break even point despite the recent drop, but hopefully another couple more dividend payments and reinvest and it will start pulling away.
The simplicity of this is still superb for me and highly recommended from my view for anyone just starting out. Fire and forget and come back in a year or two. I can see the appeal of funds here over ETFs, as you don’t need to keep logging in to change the purchase, as you buy partial units.