Ok then - How do I choose a S&S ISA!

pamaris, here are a couple of sector allocations, both for ISA/Pension.

First Watson Wyatt for risk level 9:

sector/amount		%	4000	7000	11000	14000	18000
UK Fixed Interest	6	240	420	660	840	1080 
UK Equity		42	1680	2940	4620	5880	7560 
North American		13	520	910	1430	1820	2340 
European		13	520	910	1430	1820	2340 
Japanese		8	320	560	880	1120	1440 
Far East Ex Japan	5	200	350	550	700	900  
Emerging Market	Equity	5	200	350	550	700	900  
Global Specialist	8	320	560	880	1120	1440 

For risk level 6:

sector/amount		%	4000	7000	11000	14000	18000
UK Fixed Interest	19	760	1330	2090	2660	3420 
UK Property		22	880	1540	2420	3080	3960 
UK Equity		25	1000	1750	2750	3500	4500 
North American		9	360	630	990	1260	1620 
European		9	360	630	990	1260	1620 
Japanese		5	200	350	550	700	900  
Far East Ex Japan	3	120	210	330	420	540  
Emerging Market	Equity	3	120	210	330	420	540  
Global Specialist	5	200	350	550	700	900  

Personally, I have never understood the value of these sector allocations based on a person's age, lifestyle, attitude to risk etc. etc.

If you try half a dozen different ones you will be presented with half a dozen different allocations.

After all, they are just the opinion of the individual who made them up.

Might be of some (questionable) value to a novice investor, but after you've been investing for a while your research leads you to your own views and you form a pretty good idea of where you should be placing your money. It may not always work out but at least you know that it is based on your own research ie is the best information you have available.

For example, atm I am almost exclusively invested in Metals, Energy, Water and German Property (residential and commercial) as my research has led me to believe these currently offer the best prospects.

dunstonh wrote: »

So you have no downside protection?

I am invested 50/50 equity funds and cash (including ns&i tax free index linked savings certs). I will switch to bonds when I think interest rates are about to turn, I will also increase the equity proportion to around 65% if/when we get a correction.
Dunstonh I have taken on board your views on equity spread and have utilised around 25 different funds covering UK Income, UK aggressive, UK smaller companies, European, Global, Emerging markets, Asia, Japan and USA. I still have some UK ISA trackers that I am moving over to managed funds ( again thanks for your views on this).

I have based my fund choices on the fund managers and their historical performances although I have taken a chance on some of the younger ones, Jamie Allsop and Guy de Blonay (thanks Carnet in your earlier post) also that new Fidelity special sits guy.

Hello there, I have been managing my own investments for over 20 years, it is constant learning process. I have a bit of a gamblers mentality so sometimes get caught 'catching a falling knife' or buying high and selling low, which always get's you.

I recommend that you either do your own research (DYOR) by reading books and websites OR find a recommend IFA and go through the full process with them, after all,5% commision is money well spent if it beats cash on deposit and saves you learning the hard way on S&S.

I starting buying and selling company shares which if you think about it is the ultimate diy process. Then I read a book on fund investment that goes into the whole tracker vs active discussion, it is called 'Fundology' by John Chatfield-Roberts of Jupiter, I also recommend the book - 'Investing with Anthony Bolton'.

Here is a current snapshot of my fund portfolio;

Allianz RCM BRIC Stars A - Holding
AXA Talents R - Holding
First State Global Resources - Holding
Investec Managed Growth A Acc - Holding
Artemis New Enterprises - Holding
Invesco Perp Income Acc - Holding
JPM Global Equity Income A Acc - Holding
JPM Japan A - Holding
Jupiter China Acc - Sold will buy back when it crashes
Jupiter Ecology - Holding
Jupiter High Income - Sold
Jupiter Merlin Growth Portfolio Acc - Holding
Jupiter Merlin Worldwide Pfolio Acc- Sold - moving to more European fund
Merrill Lynch Gold & General Acc - Holding
Neptune Global Alpha A Acc - Holding
Neptune Russia & Gtr Russia A Acc - Holding
New Star Global Financials R - Holding
ResolutionAsset Argnt Eurpn Alpha A - Holding
ResolutionAsset Cartesian UK Opps A - Holding
Schroder European Alpha Plus Acc - Holding
Schroder Medical Discovery Acc - Holding
Stan Life Inv UK Eq High Inc R Acc - Sold and bought more Unconstrained
Stan Life Inv UK Eq Unconstrained R - Holding

Sector Analysis
Specialist - 20%
Active Managed - 20%
Global Growth - 20%
All UK - 15%
Europe ex UK - 5%
UK Eq inc - 5%
Global emerging - 5%
Tech And Telecomm - 5%
Japan - 5%

A high risk portfolio and therefore not cash that I hope to need in the next 10 to 20 years.

PS - you can't beat pound cost averaging, monthly purchases, that way when things go south you get even more.
Be prepared to hold on at the very bottom, as markets don't turn until they've shaken out the last holder.
Conversely they turn at the top when they've converted the last sceptic, i.e. no more buyers.