After reading through various threads on this forum I realise that my portfolio is a complete and utter mess!
Check it out on the 'my portfolio' page.
I Have around $1400 in 2funds that are currently at losses of around $50.
Should I sell up and invest this in bluechips or wait it out and just invest in bluechips from now on?
What are you comfortable with?
If your current allocations are going to gnaw at you moving forward, then sure, sell them + reallocate.
If I remember correctly you pay quite a bit of premium on transactions ... like $18 USD?
If you had 4K in 6 equities and you wanted to redistribute to 6 "better" equities you'd be losing more than 5% of your capital in the transition ( 6*2*18 / 4K ). That's quite a hit.
Since you've stated in other threads you're in it for the long haul, personally I would reallocate. I don't know how the taxes work for you being in the UK ( right? ) so maybe this isn't feasible.
I wouldn't buy 6 equities, I'd buy 3 ( and realistically probably only 2 ). Ideas for starting from scratch:
XOM: 3% yield on one of the largest companies in the universe. Oil selling off right now, enabling the high starter yield. Wait 7 years and you'll have a 6% YOC
PG: 3% yield on another core position. They're shedding 1/2 their brands that add little or nothing to their top + bottom lines. Should be leaner and more profitable moving forward.
MO: 4.4% yield on "the best dividend stock in history".
Yield isn't everything obviously, and of course there's a universe of stocks with higher yields, but I don't think many would put up too much argument if you started over with those 3 holdings.
I'm not licensed to give financial advice, these are just ideas.