£4k in HL SIPP - Where should I invest it?

MoneyBob

Writing on behalf of an early 30s married lady who has £4k waiting to be invested in a HL Vantage SIPP. She has other assets so this is initially only little more than a bit of fun, and for learning the ropes for managing what will hopefully in the future grow to something more substantial.

Medium to high risk preferred therefore.

Total in the SIPP will be added to monthly (perhaps £400 a month ish).

Suggestions?

Was wondering about some of it in some of these:

http://www.morningstar.co.uk/uk/news/104687/top-5-best-performing-investment-trusts-in-2012.aspx


NB. Not interested in "why H&L, should have gone elsewhere" at this point in time.

dunstonh

Medium to high risk preferred therefore.

What is that in context? i.e. how much loss is she willing to accept in a 12 month period. medium to high risk suggests around 30% or in monetary terms, her £4000 dropping to around £2800.

Was wondering about some of it in some of these:

http://www.morningstar.co.uk/uk/news...s-in-2012.aspx

That would just be bad investing. Picking a few ITs at random, and some pretty damned high risk ones at that, is no way to invest money. And being blunt, you shouldnt be telling her where to invest either if you dont understand that.

NB. Not interested in "why H&L, should have gone elsewhere" at this point in time.

With such a small amount, she almost certainly should have gone elsewhere. However, as long as she knows that, its her choice.

MoneyBob

Yeah let's say 30% in 12 months for the sake of discussion.

So those suggestions are too high risk - but she doesn't have to put it ALL in those.

Give me some other suggestions then, if you have any?

Understand you can't say "do this" but you could presumably say something like "have a look at this, it might suit you".

?

Chrishazle

HL themselves have a lot of research stuff on their website - from the "Wealth 150" funds to individual companies. Would be a good starting point!

MoneyBob

Come on chaps. Dare to posit an opinion!

nicknameless

One of the variants of the Vanguard Lifestrategy funds are very popular for those who prefer a passive BAH strategy. Massive thread on this board about these to read up on.

A single fund will attract a £2 per month holding charge with HL at the moment.

This is not a recommendation, but an observation.

kidmugsy

Stick it in the Physical Gold ETF. Or Physical Silver.

somethingcorporate

kidmugsy wrote: »

Stick it in the Physical Gold ETF. Or Physical Silver.

Or don't......!:D

grey_gym_sock

i suppose you'd get somewhere near the stated risk level, and a decently varied portfolio, by sticking the lot in Vanguard Lifestrategy 60% Equity.

that is a bit expensive on just £4k, though - it's 0.31% TER for the fund itself, plus £2 per month for HL, which is another 0.6%, so total cost 0.91%.

you could cut costs a bit by using funds with higher TERs but no extra £2 per month.

but this is more fiddy. e.g. you could use 6 different Blackrock trackers (for equities in different world regions), plus pick a bond fund. the blackrock trackers have TERs around 0.6%.

Any

Ok, I will post an opinion...
However I am no expert. I just pick them as I like them

I pick:

Invesco Perpetual High Income (I like Neil Woodford)

Investec UK Smaller companies (good track record, but high risk)

Blackrock UK Equity Tracker (no monthly fee, relatively new but low charges and I have good feeling about UK economy long term)

And then something from emerging markets...

First State Global Emerging Market Leaders

I also like the idea of investing currently in Europe and US if you go long term... I have Threadneedle American Extended Alpha and Legal and General European Legal Index (which is no monthly charge on H&L).

brasso

MoneyBob wrote: »

Come on chaps. Dare to posit an opinion!

Dare to do some proper research!

If you ask a question like this, you'll get only the odd arbitrary drive-past opinion.

HL are fine for your needs, but I would start your research there. They have a load of information.