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New to investing - making the final step!

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  • b80_2
    b80_2 Posts: 37 Forumite
    Ninth Anniversary Combo Breaker
    100% equities will be volatile, you might think about reducing that by including a bond index.

    Yes it certainly is from what I've read! However from reading various sources (including on here) and the fact that a 20k yearly investment is around 10% of our yearly household income, coupled with the fact we don't intend to touch the money we invest for 30 years, I feel this is the best option for us at present. A large percentage of our savings will still be in cash until we have found our family home.

    I did take a look at the blackrock funds last night and they appear to cost a fair percentage more than the vls100. I will take a closer look at the fund make up later on. Do any of you guys know from experience of any compelling reasons to use the LG or blackrock equivalents instead?
  • b80_2
    b80_2 Posts: 37 Forumite
    Ninth Anniversary Combo Breaker
    I should add that my work place pension is invested into this fund -Legal & General PMC Global Equity Market Weights 30:70 Index 3. appears to be US and UK heavy - 28 UK and 48 US. This means a decent size of my portfolio will be weighted towards the US and UK... should this be a concern?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    b80 wrote: »
    I should add that my work place pension is invested into this fund -Legal & General PMC Global Equity Market Weights 30:70 Index 3. appears to be US and UK heavy - 28 UK and 48 US. This means a decent size of my portfolio will be weighted towards the US and UK... should this be a concern?

    It would certainly encourage me not in invest in VLSxx as you'd be replicating that spread again and would arguably have too much in the UK eg in the region of 25-30%, I've cut back to perhaps 5% with much in global and some in specialist areas - healthcare, far east for example.

    Next time i rebalance i may go for smaller companies as well which tends to be lacking in global funds.
  • b80_2
    b80_2 Posts: 37 Forumite
    Ninth Anniversary Combo Breaker
    The hsbc dynamic fund has less than 5% in UK equity although 25% of it's make up is in bonds, most of which are corporate bonds, and a larger % of equities in emerging markets.

    https://forums.moneysavingexpert.com/discussion/5650117

    I've just purchased smarter investing. Hopefully this pull eveything ive read over the last couple of months together and give me more clarity and confidence on whether to use an all in one product or go down more of DIY portfolio!
  • justme111
    justme111 Posts: 3,531 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Smarter investing did not work for me. Some chapters I could not understand , some already knew , some seemed to take an awful lot of space to say something that could be conveyed effectively in a few lines . Just my opinion. I have read it 4 years ago , may be should try again. I been asking similar questions and HSBC dynamic seems to be the best to me as well. If all goes well and I am back to work that is where child's pension and half of my ISA will go.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • smej
    smej Posts: 51 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Firstly apologies for the thread hi-jack. I am very new to investing and not completely sure if I'm on the same lines as what you are discussing here but I hope so.


    I'm invested in Vanguard LS80 in my S&S ISA. You mention % allocation to various parts of the world and being home bias etc. I would like to include a global tracker small companies fund if there is such a thing and also an EM fund to my portfolio in order to reduce my exposure in the UK.


    How much of my portfolio should be allocated to these funds - 10%, 15%, 20%? Is there an ideal split?


    Thanks
  • justme111
    justme111 Posts: 3,531 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I believe you will be advised that with small companies and EM it is better to go for managed funds. I do not think anybody can tell you what "should" you do as it is you who want to add them so you decide. If people do not know much about the topic they settle with one multi asset global fund. If you want to do it your way then why would you ask what others think you should.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • Jeems
    Jeems Posts: 202 Forumite
    Ninth Anniversary 100 Posts

    Fidelity have a low cost emerging market index fund

    https://www.fidelity.co.uk/investor/tracker-funds/our-range.page

    I notice that on iweb anyway, you can no longer purchase this fund. Something about new FCA regulations and this is considered a "dirty" fund, i.e. one with hidden charges. Anyone shed light on this? I thought the charges were pretty up front, what hidden charges could they have?
  • IanManc
    IanManc Posts: 2,444 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Jeems wrote: »
    I notice that on iweb anyway, you can no longer purchase this fund. Something about new FCA regulations and this is considered a "dirty" fund, i.e. one with hidden charges. Anyone shed light on this? I thought the charges were pretty up front, what hidden charges could they have?

    Yes you can buy it on IWEB. Type the MEX code for it FIAAHI into the verification box and it comes up. It's also on the drop-down menu list for Fidelity funds.
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