SAFE for mutual funds.
I am a retired, UK-based investor who is just starting to use AIM. I'm thinking of sticking to a FTSE All-Share Index tracking fund for the moment. It is relatively cheap, has no switching charges in the environment in which I'm buying and selling it, and is highly correlated with devloped world stockmarkets. I anticipate diversifying into, for example, an emerging markets index tracking fund if things seem to be going OK.
In a post to the Advanced users BB in August 2001, Tom Veale stated that he used a total SAFE (buy plus sell) of 10% for funds which follow the broad market.
I wonder if he would still recommend that. It had already occurred to me that relating the SAFE parameters to the volatilty of the security being traded seemed to make sense.
