HSBC Global & VLS60

Alexland

economic wrote: »

How old are you?

Late 30s as per post #5.

economic

Alexland wrote: »

Late 30s as per post #5.

im 34. at our ages we should not care so much of a market drop.

Audaxer

Alexland wrote: »

70% global equities, 20% bonds and 10% cash. The cash fund generates a small return but delivers most of it's benefits from the magic of rebalancing.

Interesting. Is that rebalancing within each separate ISA or SIPP you hold? Do you rebalance annually?

Alexland

economic wrote: »

im 34. at our ages we should not care so much of a market drop.

I am not overly concerned. I have already accumulated a couple of six figure pensions so don't want to risk the possibility of early retirement. Don't underestimate the power of rebalancing to bring in a similar return with a lot less volatility. I would reduce my cash allocation if the right opportunity occured otherwise I am pretty happy with my allocation.

Alexland

Audaxer wrote: »

Interesting. Is that rebalancing within each separate ISA or SIPP you hold? Do you rebalance annually?

We are probably going a bit off topic here delving into my circumstances but I try and rebalance quarterly but some of happens naturally as I go along with my regular contributions and lump sums. Most of my accounts hold a single risk profile fund so most of the rebalancing happens in my workplace pension where there are no trade costs or time out of the market.

It's basically under continual review but resisting the urge to tinker unless there are material changes.

bcfclee27

Some interesting opinions.

Yes I am a new investor and have been doing a lot of reading especially this forum in an attempt to educate myself. As per other threads I am currently using an IFA but have a burning desire to do some DIY and see how I get on.

Am definitely going to invest in the 2 funds as per the title, just need to choose the risk level I guess.
What I can say for absolute certainty is that I will not panic if / when the crashes occur, Inwould rather leave them 40 years for the recovery that cash in on a major loss.
Also my wife's portfolio is very cautious so feel if anything I can have a bit of a gamble on a higher risk fund like the VLS80 and the Dynamic.

It's great to read such varying opinions even if it makes me uncertain and confused - all part of the learning process I guess.
As long as my investments beat what I would have earns from savings account or mortgage overpayments in the long run then I'm happy and have made the right decision as was tempted to pay off the mortgage instead until reading about investments in here.

bcfclee27

Need to add I'm a lower rate tax payer and in the police so have a decent pension building up.

So S&S ISA seems the best way to go for my circumstances.

The money I'm investing came via inheritance from my dad.

Audaxer

bcfclee27 wrote: »

As long as my investments beat what I would have earns from savings account or mortgage overpayments in the long run then I'm happy and have made the right decision as was tempted to pay off the mortgage instead until reading about investments in here.

If you main aim is just to beat what you would earn in in cash savings accounts then you shouldn't really be thinking of 80% or more equities. A more balanced portfolio of 60% equities should beat savings rates in the long term quite easily.

bcfclee27

Audaxer wrote: »

If you main aim is just to beat what you would earn in in cash savings accounts then you shouldn't really be thinking of 80% or more equities. A more balanced portfolio of 60% equities should beat savings rates in the long term quite easily.

Sorry maybe didn't explain that correctly what I mean is I'd clearly like to make as much money as possible but looking back when I have retired I want my investments to have beaten these other things as a minimum.

bcfclee27

Was reading the below earlier and noticed this investor liked the HSBC balanced as a comparison to the VLS 60 however didn't like the nearing 30% allocation to corporate bonds.

I noticed that the dynamic funds have considerably less in corporate bonds than the balanced and just wondered people's opinions on this....

http://diyinvestoruk.blogspot.co.uk/2017/06/a-look-at-hsbc-global-strategy-fund.html