Global technology found.Am I too late?

donmaico

BananaRepublic wrote: »

Combining VLS20/40 with a high risk active fund does indeed seem a bit odd. That said, someone might wish to partition a fund into short and long term pots, with the latter intended for use in ten+ years time and hence it can be more adventurous. Whether there are good arguments against this, I know not.

that is pretty much what I had in mind myself but it doesn't seem to tie in with conventional thinking

Fatbritabroad

firestone wrote: »

some do the same with cash and put say 5-10% in P2P

BananaRepublic wrote: »

Well obviously when you rephrase it in such terms, it is not a good idea. I was commenting on the idea of having more risky active funds alongside a core VLS100 fund. Those funds could be chosen 'wisely' for want of a better word. I can't say I am aware of any media hype over tech funds, but then again maybe I don't use the same media as yourself.

dunstonh wrote: »

VLS is aimed at people at that believe in the passive philosophy. If you start making management decisions to involve more expensive and niche funds that bust the asset allocation then how does that fit with the passive philosophy?

I understand the core and satellite approach. However, that would typically involve multiple satellite funds to get you to the asset allocation you are after. I don't see VLS100 plus a tech fund as being similar to a typical core and satellite investor.

Just checking my own knowledge as a passive investor who wants to educate himself in how people construct their own portfolios from an interest pov. Would the other argument to this be that Vls is overweight in the s and p500 which is dominated by the major tech businesses anyway?

A_T

If anything VLS is underweight the S&P500 which occupies a larger proportion of the global market than Vanguard allocate.

donmaico

When one uses this comparator https://www.fidelity.co.uk/clients/chart-and-compare it is very tempting to think that replacing what is generally considered a cautious fund with one which is much more exciting, can only be to an investor's benefit.The two funds I compared were Liontrust UK smaller companies which over the last year has grown by 25%, and Blackrock Consensus 35 Acc which has grown by a measly 2%.
Then when one uses Calculator soup's investment calculator covering a period of five years and then 10, it just seems a no-brainer. A £5000 lump sum deposit followed by monthly instalments of £100 assuming an annual growth of 25% which is based on past performance
a)£29000
b)£111500 approx

Having said that, wiser people than myself will advise me to stay well clear because of the risk factor whilst patience is required with regards to the Blackrock fund