Whilst it is our intention to invest in a number of different investment types our preference is for Exchange Traded Funds (ETFs), because they offer a wide spread of shares and very low charges. This is the one asset class where we are unable to achieve more than a one year track record because most ETFs that invest in our preferred sectors only have a track record of one year. However, the vast majority of the underlying stocks will have at least a 3 year track record.
Our next preferred category is investment trusts because generally the charges are lower than for the average unit trust/OEIC but also because they offer something different to the latter investment type. Firstly a number of investment trusts use low cost gearing or borrowing which means that they have the potential to invest more money than a unit trust or OEIC. In addition to this, investment trusts can be bought at a discount to net assets which means that potentially they can be bought at a lower price than the equivalent unit trust or OEIC.
Next we will invest some of the fund into OEICs and unit trusts but only where there is no equivalent ETF or investment trust.
Our next preferred investment type is equities. We have a preference for global technology stocks which are market dominant and highly profitable. We have a preference for shares which are effectively a fund of funds such as Alphabet which not only owns Google but around 200 other subsidiary companies.
Last but not least we like pre-IPO private equity. We intend to access shares such as Uber and Airbnb which may involve investment via other structures.
The value of investments can fall as well as rise. You may not get back what you invest.