Hargreaves & Lansdown SIPP for newbie

MonroeM

dunstonh wrote: »

What volatility rating are you aiming for with that?
The global property tracker increases the risk (as its property share and not physical property).

Why strategic bonds? Things appear to be moving away from strategic bonds at this point in the cycle. So, what is attracting you to them and not other bonds?

I'm fine with a 7/8 risk strategy something like a VLS80?

The global property tracker fund is Blackrock but what is the difference between a property share and physical property?

I thought strategic bonds have a strategy but I would also consider International Corporate Bonds?

Linton

MonroeM wrote: »

I'm fine with a 7/8 risk strategy something like a VLS80?

The global property tracker fund is Blackrock but what is the difference between a property share and physical property?

I thought strategic bonds have a strategy but I would also consider International Corporate Bonds?

Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.

[Deleted User]

Remember also that stock markets are at record highs.
If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.
There are some interesting political times ahead,notably Trump and Brexit,which have the potential to cause havoc in the markets.

Linton

Deleted_User wrote: »

Remember also that stock markets are at record highs.
If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.
There are some interesting political times ahead,notably Trump and Brexit,which have the potential to cause havoc in the markets.

How do you do that?

dunstonh

Remember also that stock markets are at record highs.

Not all stockmarkets are. And if you factor inflation into it, then most are not at record highs in real terms.

If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.

Doesnt matter when you invest. A crash could happen the week after you invest. You either accept that or if you cant then it means you dont have the risk profile with the investments you are looking at.

MonroeM

Linton wrote: »

Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.[/QUOTE

Thank you That is helpful I will look at some property funds on Trustnet as you suggested.

Any points of reference for bond funds either passive or active?

MonroeM

MonroeM wrote: »

Linton wrote: »

Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.[/QUOTE

Thank you That is helpful I will look at some property funds on Trustnet as you suggested.

Any points of reference for bond funds either passive or active?

I have just been advised that maybe bonds are not a good idea at all at the moment so if your risk status is OK then maybe you are better off with Equities?

aj9648

OP - one potential HL product you may want to look at is the ready made SIPP portfolio - newbie myself and started considering those as well

dunstonh

aj9648 wrote: »

OP - one potential HL product you may want to look at is the ready made SIPP portfolio - newbie myself and started considering those as well

If you are going to end up with one of those, you may as well get an IFA to do it for you. No point paying that sort of money for a non-advised solution.

aj9648

dunstonh wrote: »

If you are going to end up with one of those, you may as well get an IFA to do it for you. No point paying that sort of money for a non-advised solution.

How much does a typical IFA charge?