How much to hold in any one fund

Thrugelmir

BananaRepublic wrote: »

That's bunkum. Had you invested in tech funds before the tech crash, and sold before the tech crash, you'd have made a mint. Had you not sold, you'd have lost a mint.

I simply didn't invest. As couldn't rationalise a reason to invest. Instead just stagged new issues.

Thrugelmir

I would have no hesitation in buying a particular IT or investment fund. If I believed that it offered value at the current price. %'s don't come into my thinking.

coyrls

Audaxer wrote: »

Apart from a major fraud, I was wondering whether there is any risk to investments if for example, a fund house was subject of a major cyber attack?

The most likely consequence of a "cyber attack" would be that you wouldn't be able to access the fund house's Web Site for a couple of hours. You can let your imagination run riot but it has to be tempered by some notion of the likelihood of these events. There are many, many higher risks that you should be concentrating on first.

coyrls

Audaxer wrote: »

I appreciate the risk is minimal, but an IFA recently posted that he would split clients' multi asset funds between different fund houses to keep within the FSCS limit, the reasoning being why take the risk, albeit minimal, when no need to.

My recollection is that it was said that if a client was worried about the risk of fraud they would do this, not that it was their standard practice.

talexuser

I've been the victim of fraud. In the early days of Peps Morgan Grenfell Euro Growth was a star buy and I had large profits from its growth on a par with Jupiter Income when it was under Littlewood, and Perpetual High Income under Woodford in the glory days of profits. Overnight the fund lost 40% or so because the manager has been buying unquoted companies on the sly. Deutsch Bank paid hundreds of millions in compensation but I switched soon after. It was the only time I sold a fund at a largish paper loss I believe. The affair ended with the Morgan Grenfell name consigned to history (like Townsend Thoresen after the ferry disaster) and the fund manager turning up in court in women's clothing pleading mental instability and thus not fit to stand trial - even though some of his profits were used to buy his £350,000 house - at 1990s prices!!

Audaxer

coyrls wrote: »

The most likely consequence of a "cyber attack" would be that you wouldn't be able to access the fund house's Web Site for a couple of hours. You can let your imagination run riot but it has to be tempered by some notion of the likelihood of these events. There are many, many higher risks that you should be concentrating on first.

I wasn't letting my imagination to run riot - I had just wondered if there was to a risk to investments if there was a cyber attack, so I mentioned it to hopefully get people's views.

What are the higher risks? If its picking the right funds or right assets for a portfolio I am aware of that and do concentrate on that as well.