Investment advice

NoobInvestor_2

I am very new to the forum and investing would appreciate your valued advice.

I am 34 and having savings of approximately 80k.
36k is left in S&s Isa and 10.5 k in a sipp with monthly contributions.

I would say i have a moderate high appetite for risk (5-6).

I am a believer in passive investing and have approx 50%of the capital in ETFs. 30% in managed funds (fundsmith and lindsell train).

Thus far the ETfs have treated me well as the market has been on a growth streak. Looking at history we are overdue a downturn.

Are there any balanced growth funds which could soften the volatility if I switch funds from ETfs?

lpgm

NoobInvestor wrote: »

I am a believer in passive investing

Then you believe in accepting long-term average returns. If you start to tinker now, you could be opening up a can of worms...

dunstonh

I would say i have a moderate high appetite for risk (5-6).

What context is that risk? 5-6 means nothing without knowing the size of the scale and how it is benchmarked at either end. i.e. is it 1-10 or 1-7 or 1-15. Is cash 1 or is it something different?

What would be easier would be to state your acceptable loss level. i.e. 20%, 30% or whatever you think you could accept before pulling out.

Looking at history we are overdue a downturn.

Not necessarily. When you look at bull markets, we are only around the middle. Some have lasted far longer. Some shorter.

You never know when there will be one.

economic

i am 34 and have a quarter of a mill in stocks including pension. i am thinking of buying more now whilst markets seem to be consolidating.

NoobInvestor_2

250k? That's awesome!
When did you start investing?
I only started last year.

elephantrosie

what 250k?

eskbanker

elephantrosie wrote: »

what 250k?

The quarter of a million mentioned in the previous post perhaps?

economic

NoobInvestor wrote: »

250k? That's awesome!
When did you start investing?
I only started last year.

i started in 2012 but really ramped up my investments over the last couple of years.

what im trying to say is that even with the markets high, i would not sell and i would drip feed. i feel the market can go even higher but you gotto be patience. plus you are only 34 so you have loads of time unless you need the money for whateve reason within next 10 years.

elephantrosie

economic wrote: »

i started in 2012 but really ramped up my investments over the last couple of years.

what im trying to say is that even with the markets high, i would not sell and i would drip feed. i feel the market can go even higher but you gotto be patience. plus you are only 34 so you have loads of time unless you need the money for whateve reason within next 10 years.

so you think the market will go higher, now that it is already in the high range?

economic

elephantrosie wrote: »

so you think the market will go higher, now that it is already in the high range?

yes. i said market is high because it is historically. (all time highs). im not saying its high because i think it will fall.

bowlhead99

If markets went up in a straight line then whenever you invested would always be an all time high, but despite that it would never be the wrong time to invest.

Of course, markets don't go up in a straight line because if everyone knew the market was always going to go up and never go down for the next ten years they would all invest today and the price would go through the roof and already instantly get to where they had thought it would be in ten years. And then if a couple of other people came along with a bit more money to invest, but the shares are already owned by everyone else, a bidding war would ensue for all the shares that were in existence at that time.

There would be a maximum that people would be willing to pay for a parcel of shares and a minimum that someone would accept to sell theirs. And those numbers would go up and down with supply and demand minute by minute, hour by hour, day by day, year by year. And then it would be a "proper" market; just like it is today

The fact that supply and demand exists is why the price doesn't always go up, but that doesn't mean that if it has recently gone up it will go down next. But you are rewarded for taking the risk. If there was no risk it would be unlikely that you could make money for just putting your money in and taking it out again. Companies make more and more profits over time as economies grow; over time people have more money to spend on goods and services from the companies which makes them more profitable, and people have more money to invest in the companies to help them grow more, and the demand to invest in the companies means they will be willing to pay more for an ownership share of the companies etc etc.

So over time you would expect share prices to grow and make money for you even if a lot of your money wasn't lucky enough to be first invested at the statistically very best possible time to have invested it. Invest broadly and within your means, and you'll probably be fine.