Property/cautious funds

MOUNTY

Am i being over cautious by having a Property and Cautious fund in my SIPP. Will they remain a low level investment or increase in time for retirement in 2028. Taken a higher level of risk with a High Income fund and secure on a Corporate Bond fund. Should i take more risk or remain balanced?

yelf

its up to you. you say a property: what sort. What "cautious" fund. No on can tell you how much risk to take.

MOUNTY

yelf wrote: »

its up to you. you say a property: what sort. What "cautious" fund. No on can tell you how much risk to take.

Friends Provident Property fund and Perpeptual Cautious fund. Both not doing anything but staying level month after month.

Chris_P_2

Well property will take a long time recover. You have 18 years left to retirement so if anything increase your holding to emerging markets.

bendix

MOUNTY wrote: »

Am i being over cautious by having a Property and Cautious fund in my SIPP. Will they remain a low level investment or increase in time for retirement in 2028. Taken a higher level of risk with a High Income fund and secure on a Corporate Bond fund. Should i take more risk or remain balanced?

Let me ask you this question? Should I put more sugar in my morning tea to make it sweeter, or not?

You can't answer because you don't have a clear sense of tolerance to sugar. We can't answer because we have no idea of your attitude to risk.

dunstonh

Remember that this is not residential property but commercial property.

Should i take more risk or remain balanced?

What do you call balanced as the funds you have said you have do not suggest balanced?

MOUNTY

dunstonh wrote: »

Remember that this is not residential property but commercial property.



What do you call balanced as the funds you have said you have do not suggest balanced?

Taken Property and Bond fund as a form of security over the High income fund which goes up then down. Don't want to risk all my monthly premiums to be lower on retirement. Maybe i should transfer to a Balanced managed or do i gamble or stay as i am. We all want our funds to do better correct!!!!
Friends Provident (any good)?

dunstonh

Friends Provident (any good)?

Their current personal pension is very good. Their older personal pensions can be a bit weak although a few come up well on charges every now and then.

Maybe i should transfer to a Balanced managed

FP do two very good manged funds. The Balanced index fund of funds and the cautious index fund of funds. These are not recommendations as of course that isnt possible here. However, you should include them in your own research and see if they are available on your FP plan. They may not be depending on the type of FP pension you have.

lvader

MOUNTY wrote: »

Taken Property and Bond fund as a form of security over the High income fund which goes up then down.

Property funds are pretty high risk these days, I've seen them drop as much as 10% in a day and during the credit crisis dropped more than equity funds.

MOUNTY

dunstonh wrote: »

Their current personal pension is very good. Their older personal pensions can be a bit weak although a few come up well on charges every now and then.



FP do two very good manged funds. The Balanced index fund of funds and the cautious index fund of funds. These are not recommendations as of course that isnt possible here. However, you should include them in your own research and see if they are available on your FP plan. They may not be depending on the type of FP pension you have.

Have extenal fund JPM cautious total return. charges 1.65%.
Cautious index fund of funds charges only 1% as internal, long term maybe better!!!!

Aegis

MOUNTY wrote: »

Have extenal fund JPM cautious total return. charges 1.65%.
Cautious index fund of funds charges only 1% as internal, long term maybe better!!!!

For what it's worth, you'd better check the TERs (Total Expenses Ratio) of those funds. A fund of funds typically has significantly higher internal charges than a simple managed equity/bond fund. The TER will be a more accurate representation of the true annual charge.

That said, at the end of the day, it's after-charges results that matter, not how much you get charged to get those results.