Fund of Funds

jamesd

For a fairly conservative base, it's worth starting out with UK Equity Income. For more caution add in some corporate bonds. More risk but more long-term prospects, add in a global growth fund.

Then maybe add in a European large cap. Next stop, emerging markets general fund, amount adjusted to a proportion of the whole that looks reasonable, more volatility but better long-term prospects. Something of lower risk, say US next. Or Japan or both.

Lots of other ways to start to approach it, depending on the desired number of funds and risk and return level desired.

I started out with 4000 in a single global growth fund but I wouldn't do that today - I'd use at least four different funds, most likely UK Equity Income, European Large Cap, Emerging Markets, Global Growth. But that's me with a high risk target. And in fact I wouldn't use just four funds today. I'd look at the sector split to achieve my target risk level and use whatever quantities those percentages led to.

The_Fiddler_2

So for talkings sake how would you split up £4000 today?

ukdutypaid

Not sure you're going to get that answer... .You mean which ones should you put your money in.....
There's a massively useful thread called
Go on then how do I start a S&S ISA..... I've found that invaluable...
It does involves a bit of groundwork though, I'll be honest.....

Boy if I had the easy answers....

The_Fiddler_2

ukdutypaid wrote: »

Not sure you're going to get that answer... .You mean which ones should you put your money in.....
There's a massively useful thread called
Go on then how do I start a S&S ISA..... I've found that invaluable...
It does involves a bit of groundwork though, I'll be honest.....

Boy if I had the easy answers....

Not what particular funds, jus the type of funds you would spread the money over.

jamesd

You're correct, The Fiddler isn't going to a more detailed answer than I already gave because how I do it and which funds I pick isn't how someone else should do it because it depends on personal risk tolerance and preferences. I also comment enough here that I'm wary that people might inappropriately just copy what I do if I get too specific - and my risk tolerance, including which funds I'll select in any given sector, are at the high end of the fund risk scale.
OK then - How do I choose a S&S ISA is a useful discussion to read.

The_Fiddler_2

Thanks for the response, there is no danger of me just copying you however - with something as important as this I would do my own research anyway. i'm just looking for general pointers

The_Fiddler_2

jamesd wrote: »

OK then - How do I choose a S&S ISA is a useful discussion to read.

Thanks for the link :beer: