Nutmeg fully managed portfolio for pension

Alexland · 9 February 2018 at 12:12AM

Yanling wrote: »

Cheers!
So I do not need to rebalance by myself. the manager who runs the fund in a portfolio will rebalance it , it is right?

Yup you just need to pick the mixed asset fund that matches your investment outlook and risk appetite and buy units with your contributions. The fund manager will automatically rebalance the assets within the fund.

If you pick an accumulation fund the dividends are also automatically reinvested by the fund manager.

Then you just need to make sure you are paying your ongoing platform fees. The fund fees are automatically deducted from within the fund.

Alex

Yanling · 9 February 2018 at 12:20AM

I can not believe it. it is so easy?
I will definitely look into Cavendish tomorrow.
Thanks so much folks!
Good night

Joey_Soap · 9 February 2018 at 5:30AM

Yanling wrote: »

I can not believe it. it is so easy?
I will definitely look into Cavendish tomorrow.
Thanks so much folks!
Good night

You may also choose to look at Close Bros who offer a low cost SIPP for the same 0.25% annual fee as Cavendish. At Cavendish you will use the Fidelity fund shop and I know a lot of people complain about Fidelity for poor admin and poor customer service. At Close Bros, you use their own platform and my own experience with them (3 SIPPs in the family) has been very positive.

Yanling · 9 February 2018 at 9:49AM

Joey_Soap wrote: »

You may also choose to look at Close Bros who offer a low cost SIPP for the same 0.25% annual fee as Cavendish. At Cavendish you will use the Fidelity fund shop and I know a lot of people complain about Fidelity for poor admin and poor customer service. At Close Bros, you use their own platform and my own experience with them (3 SIPPs in the family) has been very positive.

Hi, thanks for the help. At Cavendish, does HSBC Global Strategy include Fidelity fund shop? A I able to avoid Fidelity fund?

MallyGirl · 9 February 2018 at 10:39AM

Yanling - I would just ignore Joey's suggestion as he has confused you again when you had reached a level of comfort. For someone who is just going to hand over your money, rather than actively trading, I am sure that using the Cavendish platform to hold a mixed asset fund such as HSBC will be fine.

Yanling · 9 February 2018 at 11:19AM

MallyGirl wrote: »

Yanling - I would just ignore Joey's suggestion as he has confused you again when you had reached a level of comfort. For someone who is just going to hand over your money, rather than actively trading, I am sure that using the Cavendish platform to hold a mixed asset fund such as HSBC will be fine.

Thanks MallyGirl x
I am going to invest for pension for 12 years when I am 67. Do I need to do something by myself for the investment needs such as changing the proportion of the equality, fund, bond ect over the years?

MallyGirl · 9 February 2018 at 12:07PM

I would do a bit more research to work out what you attitude to risk is. If you are thinking HSBC Global Strategy this will guide you to whether you are a 'Balanced' type of person or a 'Dynamic' (higher risk might lead to higher returns but it also might not).
You then open your new SIPP on Cavendish (for example) and deposit some money. You buy your chosen fund for that money and sit back and wait till you retire. You can put more money in use that to buy the same fund. Within the fund they adjust the ratio of equity to bonds/property/cash/whatever else is in there all for you. You do not need to do anything.

If you started out as a higher risk tolerant person with the Dynamic fund you might choose to move to a lower risk level as you near retirement. You could swap everything to the new fund or you could gradually transfer over time or you could just choose to put new money in the lower risk selection. That is something to think about in the future.

Yanling · 9 February 2018 at 8:17PM

Good evening all, Thank Alex and MayllyGirl in particular.
I am looking into the Cavendish website, seeing HSBC global strategy funds, they have
HSBC global strategy balanced portfolio C Acc
HSBC global strategy balanced portfolio C Inc,
HSBC global strategy dynamic portfolio Acc,
HSBC global strategy dynamic portfolio Inc.
For balanced portfolio which one should I take?
For dynamic portfolio which one should I take?
https://www.cavendishonline.co.uk/investments/fund-research/

ValiantSon · 9 February 2018 at 9:41PM

Yanling wrote: »

Good evening all, Thank Alex and MayllyGirl in particular.
I am looking into the Cavendish website, seeing HSBC global strategy funds, they have
HSBC global strategy balanced portfolio C Acc
HSBC global strategy balanced portfolio C Inc,
HSBC global strategy dynamic portfolio Acc,
HSBC global strategy dynamic portfolio Inc.
For balanced portfolio which one should I take?
For dynamic portfolio which one should I take?
https://www.cavendishonline.co.uk/investments/fund-research/

As your current aim is to increase your wealth, you would want the accumulation version of the funds, so that would be either:

HSBC global strategy balanced portfolio C Acc

or;

HSBC global strategy dynamic portfolio Acc

Acc stands for accumulation and Inc stands for income. With accumulation your dividends are reinvested, which is what you want at the moment.

MallyGirl · 9 February 2018 at 9:49PM

I don!!!8217;t know Cavendish- it is not a platform I use - so you would need to look at the fees they charge.
I can explain the Inc and Acc bit though.
If you buy an Acc fund then any dividends that are generated get automatically invested back in the fund. You do not need to worry about it.
If you buy the same fund, but the Inc version, then the dividends get paid out as cash into your SIPP account. You then need to reinvest them which will incur a transaction fee.
Acc is easier for now.
You might choose Inc (at retirement) if you need to withdraw an income from the SIPP as you can withdraw the cash dividend without having to pay transaction fees for selling some funds.
This is a simplified explanation but I hope it helps.

Nutmeg fully managed portfolio for pension

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