Why UK equities as core holding?

artha

Is there any fundamental reason why a growth portfolio that has no particular finish date target(within a 5-10 year loose timescale) should include UK equities?

Aegis

Because you're in the UK, mostly. Generally people tend to hold a fairly large proportion of the equity market in which they live because it's denominated in the same currency. There's no rule saying you have to do this, and in fact the UK is only about 25-30% of my own portfolio.

artha

Aegis wrote: »

Because you're in the UK, mostly. Generally people tend to hold a fairly large proportion of the equity market in which they live because it's denominated in the same currency. There's no rule saying you have to do this, and in fact the UK is only about 25-30% of my own portfolio.

In my own position, currency is the only reason I hold UK equities in my growth portfolio but I struggle to find funds with enough growth potential to justify their volatility. I tend to use uk funds to deposit profits from overseas funds, when as at the moment the pound is low.

barny_100

artha wrote: »

Is there any fundamental reason why a growth portfolio that has no particular finish date target(within a 5-10 year loose timescale) should include UK equities?

What are UK equities though?

The FTSE 100 for example is somewhat uncoupled from the UK economy as many companies balance sheets are overseas earnings dominated.