Safe investments!!!!!!!!!

dunstonh

Most portfolios I build have less than 1% with any one company. How you can say that is riskier than having all your money in upto 15 companies, I don't know.

It also depends a bit on your attitude to risk: I have 25 shares in mine, as I like all my risks to be calculated and it's quite a large amount of money. Some people will say I have compromised too much on the "high" but I prefer a slightly lower yield and more safety.You're making an extra 1.5% a year through not paying any charges anyway, so why not?

You have your portfolio spread across 25 companies based only in the UK. That is far riskier than a diverse portfolio investing in hundreds of companies around the world and includes some fixed interest funds and property with periodic rebalancing. Yes yours is 1.5% cheaper but over the long term, I doubt peformance would be more than 1.5% a year better than a diversified portfolio.

Charges are higher with fund based investing but it allows you to include areas that you cannot invest in with single shares and it reduces the overall risk that you take.

A HYP is a single sector investment. Single sector investments for you entire portfolio is a high risk approach and old fashioned investing. Now, if you were to use those single shares as part of an overall portfolio that included other sectors, then that is a different matter.

EdInvestor

dunstonh wrote:

Most portfolios I build have less than 1% with any one company. How you can say that is riskier than having all your money in upto 15 companies, I don't know.

As Chrismaths confirms. you don't get any risk reduction worth bothering about beyond 25 companies.

You have your portfolio spread across 25 companies based only in the UK. That is far riskier than a diverse portfolio investing in hundreds of companies around the world

It isn't, in fact.

..and includes some fixed interest funds and property with periodic rebalancing.

Where did I say that I ONLY invested in an HYP? I have quite a wide range of other investments in my portfolio.

The HYP was mentioned in this context:

Indeed an HYP would be very suitable for Pobby's medium risk equity component, now we've pinned him down a bit on his risk profile and asset allocation.

And that's the role it plays in my portfolio.

dunstonh

And that's the role it plays in my portfolio.

perhaps when you "promote" the HYP you should make that clearer as some could take it that you only have a HYP and nothing else.

As Chrismaths confirms. you don't get any risk reduction worth bothering about beyond 25 companies.

I believe Chrismaths was referring to one sector.