Portfolio investment advice

rd07

Hi, I need to change my pension funds. Currently contributions are split 50/50 between a money fund (very low risk) and property (medium). Thinking of maybe keeping the property one as it has performed OK but maybe move/redirect future investments for the 50% currently going into the money fund as I'm mid thirties and I think this is too low risk. My thoughts were maybe to keep the 50% in the property fund and split the 50% currently going to the money fund between 2 new fund selections, 25% each.

This is a corporate pension through Friends Life. I've been looking at some of the options and I need to do more research but was looking at the FL Kames High Yield Bond as one of my new selections. Any advice would be greatly appreciated. Thanks.

Sobryma

Both approaches to me seem really high risk, undiversified, over exposed to single asset classes, country etc.

Depending value in pension I would personally go for multi asset fund suiting your risk comfort level or mix of different asset classes by using or cloning an asset allocation model (there are a few online).

dunstonh

Thinking of maybe keeping the property one as it has performed OK but maybe move/redirect future investments for the 50% currently going into the money fund as I'm mid thirties and I think this is too low risk.

Using the money market fund is crazy at age 30. Whilst it is low risk in terms of volatility, it is high risk in terms of inflation risk and shortfall risk.

Also, splitting your investments between just 2 asset classes is also poor quality investing and a recipe for lower returns. You are currently using funds that are designed to be held as a portfolio of funds (typically around 8-10 sectors - of which you currently have 2).

You should either use a multi-asset fund if you do not know what you are doing (and currently that appears to be the case) or start to read up on how to invest and make better investment decisions.