Passive Investment Strategy Advice

Niksan123

Hello all,

First time poster so please go easy on me!

I've been reading a bit about passive investment and I'm looking to dip my toe into the water. I'm thinking of initially investing £2500 within a S+S ISA in HSBC index trackers in a rough ratio as follows:

UK Bonds (30%): UK FTSE (30%): US (20%): Japan (20%)

I will then look to put in £1000 per month to rebalance the ratios.

My main concern is that the FTSE is at such a high level. Am I better off waiting (in the hope that the FTSE drops) or jumping in now?

Thanks in advance

Nik

jabba42

IMO yes, wait but that is just me.

GeorgeCarranza

the best investment technique is to save it in bonds for higher yield

Jegersmart

GeorgeCarranza wrote: »

the best investment technique is to save it in bonds for higher yield

rubbish...

Jegersmart

Why 20% Japan?

ColdIron

GeorgeCarranza wrote: »

the best investment technique is to save it in bonds for higher yield

Building up a post count?

ColdIron

Niksan123 wrote: »

UK Bonds (30%): UK FTSE (30%): US (20%): Japan (20%)

My main concern is that the FTSE is at such a high level. Am I better off waiting (in the hope that the FTSE drops) or jumping in now?

It's not a completely mad strategy but quite UK/US centric and the only thing outside of it is just Japan. Why not go for a more broadly based asia pac one with or without Japan?

Are the UK bonds gilts? It's widely thought that these are at an unprecedented high now and have only one way to go

It's always a worry getting in on a high but how long do you wait? It could be even higher in 6 months or a year. Since you are continuing to add to the funds you should get a more 'average' price as time goes on and if you are in for the long term it matters even less. I'd jump in but that's just me

dunstonh

I've been reading a bit about passive investment and I'm looking to dip my toe into the water. I'm thinking of initially investing £2500 within a S+S ISA in HSBC index trackers in a rough ratio as follows:

UK Bonds (30%): UK FTSE (30%): US (20%): Japan (20%)

So, effectively, you are taking on the role of an investment manager by choosing your own investment allocations. So, not quite as passive as you may think. What data are you using to build your sector allocations? Why have you limited yourself in such a way?

innovate

Have you come across http://monevator.com/category/investing/passive-investing-investing/? Several passive portfolio suggestions in there

quotememiserable

I'd be inclined to go for a growth UK fund rather than a tracker, fidelity have some good ones (special situations, moneybuilder), and I'd go with an emerging markets general fund rather than japan only. But everyone will have their own idea, it really depends on what risk appetite you have and where you think value will come from.

dunstonh

Please ignore noah herman. This poster seems to post random bits of non-UK related text. Board sometimes removes the posts but more often than not doesnt. The product mentioned is not UK related and the closest equivalent would be classed as high risk or even toxic for most people.