How many funds do you hold?

itm2

Another consideration (although extremely hard to get right) is to choose a spread of funds with low correlation in terms of factors driving performance (investment type/sector/geography/etc). So the portfolio doesn't all lurch in the same direction in reaction to market events and hence offers some stability.
My own spread was put together with the help of someone who knows much more than me about these things, but has 20 funds spread across the following categories:
Multi-Asset 30%
Equities 15%
Hedge Funds 15%
Absolute Return 12%
Bond Funds 12%
Index-Linked Gilts 12%
Gold 4%

bigfreddiel

Jegersmart wrote: »

As already stated, this is !!!!!!!!.

J

too true - complete BULL in this thread

four etfs or one fund - simple as that

anything else just lines the pockets of the financial people, fas, ifas, fund managers and so on

this is will as well as anyone

vanguard lifestrategy 60% acc

or

four ETFs

world index
corp bonds
gov bonds
index linked bonds

both very low cost and will return 10% plus

fj

bowlhead99

bigfreddiel wrote: »

too true - complete BULL in this thread

bigfreddiel wrote: »

this is will as well as anyone

vanguard lifestrategy 60% acc

or

four ETFs

world index
corp bonds
gov bonds
index linked bonds

both very low cost and will return 10% plus

Well if we're calling people out on complete bull...

- Corp bonds and gov bonds and index linked bonds are not going to return 10%+. The yield on a 10 year UK gov bond is a couple of percent. The only way for the yield to rise is for the capital value to fall. This is not going to get your 10% compound growth into the future from current prices

- The long term market return for a balanced portfolio of developed largecap stocks (i.e. world index) does not really exceed 10%. Sure it does in certain years and western markets have rallied significantly from the lows of recent memory to current highs. But looking forwards from here at current high prices and weak UK exchange rates, over the next 10-20 years say: is a balanced portfolio containing 60% of such stocks, which individually have a long-term average of returning 10% or less, going to now sufficiently outpace your 10% target to account for the drag from having 40% of the portfolio in low yield corporate, govt and indexed bonds which are already at highs and yielding very little and potentially needing to fall 5-25% to get back to a long term norm? History suggests not.

What do you know differently that tells you that you'll easily get compound 10% growth from current market levels with only 60% largecap global stocks and 40% gilts and investment grade corporate bonds? For such returns I would argue you need riskier higher growth types of equities and a lower 'safe and steady' fixed interest component.

Of course a portfolio fund (if broad enough) can do the job of multiple funds if it is set up right, though I'd argue that Lifestrategy, while a great concept for general cheap exposure, is not broad enough and the lack of any strategic review of the holdings by reference to the world economy is a recipe to underperform, rather than outperfom, your ambitious 10% goal.