Professional IFA HELP needed for £80,000

wongseefu

Hi fellow investors,


Heres my situation, l'll try to be as clear as l can. I have £50,000 to invest. Also there is a on going income of £500 monthly which will be used to invest as well.

Out of this £7,000 is going into a Maxi Isa due to the significant tax advantages. The rest £43,000 is going into OEIC's.

I've just turned 24 therefore l have a fairly high attitude to risk. I don't mind if my investments drop in price and actually want it to happen in the hope of a better return. I'm not looking to touch my investments for up to 5 or 6 yrs so l will be using acc funds. By diversifying my portfolio l hope to gain the most by investing into a broad range of funds

Here is how my investment is divided up into:

£50k into:

£7,000 ISA New Star Active Portfolio
£10,000 Jupiter WorldWide Portfolio
£10,000 Jupiter Income Portfolio
£3,833 Scottish Widows Property Trust
£3,833 Standard Life Select Property Trust
£7,666 Invesco Perpetual High Income
£7,666 M&G Global Basics


£500 monthly into:


£100 Jupiter China
£100 Schroder UK mid 250
£100 Jupiter Emerging European Opportunities
£100 JPM Natural Resources
£100 Standard Life Select Property Trust


Any advice or comments are welcomed!!! (especially from IFA)

In the meantime, l think my current and savings account are pretty decent with LIoyds TSB monthly saver @ 8% and my current account is used for transferring monies around. What does everyone think?


Best regards,

See Fu

wongseefu

Sorry, forgot to say l had £30,000 in a off-shore 128 day termed deposit account earning 3.2%.

Obviously that money is more of a emergency money fund and not for investing.

Again, any advice is appreciated.

Take care,

See Fu !!!

ds1980

seems fine but don't understand why you offshore £30k there must be better options at home especially at only 3.2%

EdInvestor

Since you've already decided what you want to invest in, seems it's not an IFA you need, but a discount broker which will rebate the initial charges and part of the annual fee.

Here are a few suggestions

https://www.h-l.co.uk
https://www.chelseafs.co.uk
https://www.cavendishonline.co.uk
https://www.bestinvest.co.uk
https://www.chartwell-investment.co.uk

Chrismaths

It seems clear that See Fu's not using an IFA, he just wants free advice from someone, so Ed's comments are again not relevant. I don't think she even reads most posts, she just cuts and pastes her usually trolling issue of the month.

Your lump sum investment is (on the whole) invested in moderate risk funds, whilst your regular investments are in high risk, sector specific funds. This reduces the overall risk of your portfolio, as you will benefit from "pound cost averaging" with the higher risk elements of your portfolio. In other words, when the price of the fund is low (having fallen) you will buy more units, and when the price is high (having risen), you will buy less. This means that the average price you pay for a unit will be less than the average price of units whilst you're buying them - which is a nice thing.

However, you mention diversification, but you 35% in UK Equity Income, 15% in property, and about 50% in global funds. However, these global funds have significant UK weightings (they average out around 20%), so you are actually looking at 45% UK, 40% Global Equity ex-UK, and 15% property. With £50k, you could get a much better spread.

HTH.

zag2me

Great stuff Chrismaths, thanks I found that post really usefull Just wish I had the money to invest

dunstonh

Discount brokers are usually IFAs offering better terms for execution only. So, it is an IFA he wants. Just one that will offer good terms.

It is worth noting that at least three on that list can be beaten on like for like terms by IFAs depending on the investment product used and assuming the IFA gets full enhancement on the commissions. The enhancement being rebated would give better terms.

As an explantion of that, charges are based with an assumed commission payment. However, the providers can enhance the commission without increasing the charges for IFAs that place a lot of business with them. This typically means that the largest IFA networks get the highest commission rate. If that rate is being rebated as its execution only, then the extra rebate makes them cheaper. A few of those listed do not get top commission rates.

CM has covered the other points on diversification (or lack of).

wongseefu

Hi there,


First of all thanx for all your replies, keep them coming, the above selection of funds was selected by a IFA. I think the platform we are using is called Co Funds.

Personally, l thought there are better performing funds out there even in the same sectors. But l was assured that l had a pretty good spread of investments (what you think?). Everything has gone through and the platform will be set up by next week. The IFA also said that if l wanted l could discuss with him if l wanted to add a few more funds (which seems like a good choice).

Something commented on earlier, it doesn't seem like my portfolio is that diversified really. I totally agree, alot of my funds is connected to the uk sector and property in general. Once my everything is setup and kicking, l'm planning to add another fund or two with any excess money l can save up. Something like either

Skandia Global Best Ideas (Acc)
Marlborough Far East Growth A

or maybe even Jupiter Japan Income or JO Hambro Japan Income

Any advice would be welcomed.

THe reason why l have £30,000 in a offshore account is because it's in Hong Kong and the exchange rate just now on it is pretty low and the 3.2% termed deposit for 128 days seem decent with no tax on it. Don't forget if l was to bring it over here, the tax on it is 22% straightaway l think if l'm not wrong.

REgards,

See Fu

wongseefu

Chrismaths wrote:

It seems clear that See Fu's not using an IFA, he just wants free advice from someone, so Ed's comments are again not relevant. I don't think she even reads most posts, she just cuts and pastes her usually trolling issue of the month.

Your lump sum investment is (on the whole) invested in moderate risk funds, whilst your regular investments are in high risk, sector specific funds. This reduces the overall risk of your portfolio, as you will benefit from "pound cost averaging" with the higher risk elements of your portfolio. In other words, when the price of the fund is low (having fallen) you will buy more units, and when the price is high (having risen), you will buy less. This means that the average price you pay for a unit will be less than the average price of units whilst you're buying them - which is a nice thing.

However, you mention diversification, but you 35% in UK Equity Income, 15% in property, and about 50% in global funds. However, these global funds have significant UK weightings (they average out around 20%), so you are actually looking at 45% UK, 40% Global Equity ex-UK, and 15% property. With £50k, you could get a much better spread.

HTH.

What type of spread would you recommend?

At the moment l'm trying to educate myself as much as l can regarding funds etc. for example the skandia global best ideas (acc) or Marlborough far east Growth A seem a good fund which l can discuss with my IFA in our next meeting. In essence that'll balance my exposure to far east. What you think?


Regards,

See Fu

wongseefu

Chrismaths wrote:

It seems clear that See Fu's not using an IFA, he just wants free advice from someone, so Ed's comments are again not relevant. I don't think she even reads most posts, she just cuts and pastes her usually trolling issue of the month.

Your lump sum investment is (on the whole) invested in moderate risk funds, whilst your regular investments are in high risk, sector specific funds. This reduces the overall risk of your portfolio, as you will benefit from "pound cost averaging" with the higher risk elements of your portfolio. In other words, when the price of the fund is low (having fallen) you will buy more units, and when the price is high (having risen), you will buy less. This means that the average price you pay for a unit will be less than the average price of units whilst you're buying them - which is a nice thing.

However, you mention diversification, but you 35% in UK Equity Income, 15% in property, and about 50% in global funds. However, these global funds have significant UK weightings (they average out around 20%), so you are actually looking at 45% UK, 40% Global Equity ex-UK, and 15% property. With £50k, you could get a much better spread.

HTH.

What type of spread would you recommend?

At the moment l'm trying to educate myself as much as l can regarding funds etc. for example the skandia global best ideas (acc) or Marlborough far east Growth A seem a good fund which l can discuss with my IFA in our next meeting. In essence that'll balance my exposure to far east. What you think?


Regards,

See Fu

Chrismaths

Sorry mate a) specific financial advice is against board rules
b) I can't recommend a portfolio without finding out more about you
c) The FSA ban advice without the above (in other words I would have a liability without a full fact find
d) I charge a fee for that sort of stuff. Sorry, I have to eat.