L&G Pension, Which Investment Fund?

Tomaradona

Hi I am 27 and my job has offered me a pension plan with Legal & General. I put in 2% salary contribution they put in 4%.

The options for the choice of Investment Fund are many divided into cautious, moderate and high risk. I am young & I want a relatively risky fund but have lost my confidence in the market and don't know how risky these things are relatively ? Please could you advise what would be a sensible choice?

There are about 30 to choose from by Aberdeen, Investec, Global Equities, JPM, Schroder, Allianz, SG l&G etc. I have included 2 below that I like the look of because they spread risk but are mainly UK. I would really appreciate your comments...

1.High Risk:

SG UK 350 Equity Fund
(see note 3)
EFAMC 0.15%
The SG UK 350 Equity Fund aims to achieve capital
growth through investment in the quoted securities of
companies operating in any of the economic sectors
of the UK. The fund invests mainly in securities of
companies listed on the London Stock Exchange
and which are part of the fund’s benchmark, the

FTSE 350 Index.

2.

Global Equity 70:30 Index Fund
(see note 1)
The Global Equity 70:30 Index Fund benefits from the
returns of the UK and overseas equity markets by
investing 70% in our UK Equity Index Fund and 30% in
our overseas equity index funds. The overseas equities
assets held within the fund are based on the average
investment mix of a large number of major pension
funds using the three-monthly Combined Actuarial

Performance survey (excluding property).

dunstonh

I want a relatively risky fund but have lost my confidence in the market

Which suggests you are not high risk. Stockmarkets in general are considered medium/high risk. Emerging Economies or areas of higher currency risk move up the risk scale as do areas of speciality.

Tomaradona

dunstonh wrote: »

Which suggests you are not high risk. Stockmarkets in general are considered medium/high risk. Emerging Economies or areas of higher currency risk move up the risk scale as do areas of speciality.

In which case is it safer to go for the 70-30 split UK to global equities? This would seem the safer option? Thanks a lot for your help.

Global Equity 70:30 Index Fund

(see note 1)
The Global Equity 70:30 Index Fund benefits from the
returns of the UK and overseas equity markets by
investing 70% in our UK Equity Index Fund and 30% in
our overseas equity index funds. The overseas equities
assets held within the fund are based on the average
investment mix of a large number of major pension
funds using the three-monthly Combined Actuarial

Performance survey (excluding property).
Tom

bendix

To be candid, does it really matter? You're only 27 and have 35-40 years to retirement - plenty of time to mitigate any risk and smooth out returns.

And given you're only putting 2% of your own money at risk, you are talking about -worst case - losing a fraction of a fraction.

Put more than 2% in. It's not enough.

yelf

if unsure split the investment 50/50. At your age you have plenty of time to take some risks. Looking back over 40years any drop is very small compared to the growth. Im 27 and have my pension in emerging markets and am looking at a commodities fund as I know that over 40yrs any falls should be little concern for the greater potential growth

(thgis is very rough talking and in no way specific, but feel anyone with over 20yrs off retirement should be looking at more adventurous funds).

any advisory firm worth its salt would ask a mini questionnaire based around returns, inflation, volatility etc and help decide the exact degree in terms of beating inflation in whcih you sit. And then be able to recommend a managed portfolio that does this.

cyclonebri1

bendix wrote: »

To be candid, does it really matter? You're only 27 and have 35-40 years to retirement - plenty of time to mitigate any risk and smooth out returns.

And given you're only putting 2% of your own money at risk, you are talking about -worst case - losing a fraction of a fraction.

Put more than 2% in. It's not enough.

I'm sure there will be the option of putting more than the 2% in, even though the company won't match it you'd be well advised to double your contribution as Bendix suggests. With tax relief it will cost very little:rolleyes:

bendix

cyclonebri1 wrote: »

I'm sure there will be the option of putting more than the 2% in, even though the company won't match it you'd be well advised to double your contribution as Bendix suggests. With tax relief it will cost very little:rolleyes:

double it my a**e. :rotfl:

Quintuple it as a minimum, and go on as if you're serious about having a happy retirement.

cyclonebri1

bendix wrote: »

double it my a**e. :rotfl:

Quintuple it as a minimum, and go on as if you're serious about having a happy retirement.

Up yours bd, tw*t:o