Help deciding which multi-asset fund to invest in

AnotherJoe

Filo25 wrote: »

As a noob who leans active more than average on here on a personal level I don't mind being overweight in UK equity, but not large cap.

I'm with what A_T posted, LS overinvests in the UK which means first that it overinvests in just one economy, and secondly that overinvestment is not only focussed on just a handful of industry sectors but a major one of those sectors is oil that you would not expect to do well in the long term and another is tobacco, same comment.

Filo25 wrote: »

My only concern with tracking global markets in line with market cap is how heavily it would leave me exposed to the US market.

Thats a reasonable position but in that case picking one global fund isnt appropriate.

Filo25 wrote: »

With regards to the original poster though I would say as someone starting out your main decision will be deciding what level of risk you can live with and go ahead with investing at that level, and given that you don't want to spend much time researching, monitoring and rebalancing I would personally say a low cost diversified global passive fund is the way to go.

Agree and in that case i think the HSBC fund is a better choice for the long term for the reasons of not overinvesting in the UK / handful of large caps, even if short term the US market seems high - then again people said that one and two years ago as well and its gone higher since.

greenglide

A pension also (currently) gives a 25% tax free lump sum as well which often gets overlooked here.

Rich99

OK, thanks all for the (as always) helpful advice.

TheLastMongoose

Linton wrote: »

If you pay basic rate tax or higher rate tax both whilst working and in retirement SIPP wins by 20% X 25% =5%

If you pay basic rate tax whilst working but higher rate in retirement ISA wins by 10%.

If either of these situations are likely, particularly the second one you should consider a Lifetime ISA. You get a 25% uplift when contributing and don't pay any tax when withdrawing. The catch is money is locked up until 60 and you can only deposit £4k per tax year (which gets topped up to £5000). That doesn't stop you putting the remaining £16k in a normal S&S ISA though. You also have to be under 40 to open one.