Fund Choice

j0nathon2

Hi,

I am 30 years and currently choosing funds for an L&G stakeholder pension with my new company as the final salary has ended, total contributions will be bout £400pm and I have no pension up to now. I am struggling to come up with a decent allocation. My initial thinking is along the line of:

UK Smaller Companies 20%
Far Eastern 10%
International 30%
UK Equity Index 30%
European Fund 10%

(All L&G's own funds)

That's quite UK heavy if you add up the smaller companies and tracker. What are people's thoughts, and what are people's thoughts on Europe and Japan?

The full list is available at the bottom (you have to uncollapse) http://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/pension-fund-choices/

By default, my company will just enrol into their 50% UK / 50 % Overseas fund for the full amount. I was also surprised how many of those funds are trackers considering the pretty high AMC!

Thanks
Jon

fizio

I would stick it in 1 or 2 funds as you are not talking about large sums here. Bulk in UK ftse (50-70%) and rest WW. When I was with L&G i mainly went with the 60/40 fund. Now I am in a single growth' fund which invests in all the major asset clasess in all the major geographies - i.e a 'safe' bet given i am less than 10 years to retirement

It also depends on how active you want to be and how much risk you want to take..

j0nathon2

I am prepared to risk because of the long time until I retire (at least 30 years). I am prepared to be active and change as required I guess.

bigfreddiel

j0nathon2 wrote: »

I am prepared to risk because of the long time until I retire (at least 30 years). I am prepared to be active and change as required I guess.

active isn't good especially if you're in it for the long term, which you are

warren buffett, the most succesful investor ever may only trade once a year - his moto is 'time in the market' and not 'timing the market' - make that your guideline

fj