Building a portfolio opinion, thanks

Yanling

Hi there, I am going to invest £800 a month sipp for 10 to 12 years, I have an iSA with vanguard. My sipp portfolio is going to be :
Lindsell Train global equity,
Baillie Gifford managed,
Schroder managed balanced,
HSBC global strategy balanced,
Blackrock consensus 85,
With the passive funds below investing £25 a month for each fund, and the remaining money will go for the 5 funds above.
Blackrock: iShares emerging markets, iShares pacific ex japan, iShares corporate bond;
L&G : all stocks gilt index trust,, eu index, international index trust, uk index.

What would you think of it? any better fund? maybe adding infrastructure fund? precious metals fund?
Many thanks!

System

Why not one multi-index/multi-asset fund until you have at least £50K?

AnotherJoe

I think you've just constructed your own multi asset fund. The allocation seems somewhat arbitrary, to a certain extent many are but it seems unlikely that investing the exact same amount in multiple very different funds is the best allocation.
Also and I certainly haven't looked into the details of your funds but I'd bet a pound to a penny that there's a huge overlap between many of the constituents of the first list you have such that it could be covered in one or two funds.
If you did pick one or two main funds, perhaps one index and one managed, them for additional funds, I'd suggest you consider biotech or healthcare for one of them. Healthcare spending is going to rise.

Audaxer

Economic wrote: »

Why not one multi-index/multi-asset fund until you have at least £50K?

I agree that it does seem overly complicated for investing £800 per month. Most seem to be similar balanced multi asset funds with Lindsell Train 100% equity thrown in. I also don't see the point in only £25 per month into all these other funds. What benefit do you think you'll get rather than investing £800 per month in the one multi asset fund?

Alexland

Economic wrote: »

Why not one multi-index/multi-asset fund until you have at least £50K?

Even above £50k my SIPP only contains one fund and I see no reason why the above would deliver a better risk adjusted return. Although I am considering switching back from HSBC GS Balanced to VLS80.

Alex

cloud_dog

Yanling wrote: »

Hi there, I am going to invest £800 a month sipp for 10 to 12 years

Funnily enough I am investing £800pm in to my AVC for a similar (possibly slightly less time scale), and at the moment it is all going in to one fund.

Audaxer

cloud_dog wrote: »

Funnily enough I am investing £800pm in to my AVC for a similar (possibly slightly less time scale), and at the moment it is all going in to one fund.

As a matter of interest, which fund?

MallyGirl

you are going to be paying transaction fees on each of these purchases every month - with this many elements and relatively small amounts the fees are going to seriously impact any growth

I would simplify your plan for now

Yanling

MallyGirl wrote: »

you are going to be paying transaction fees on each of these purchases every month - with this many elements and relatively small amounts the fees are going to seriously impact any growth

I would simplify your plan for now

If I invest with HL provider, they do not charge dealing fees for investing funds, is it ?

Sue58

Alexland wrote: »

Even above £50k my SIPP only contains one fund and I see no reason why the above would deliver a better risk adjusted return. Although I am considering switching back from HSBC GS Balanced to VLS80.

Alex

Alex, would you mind me asking why you are thinking of switching. Also, is the HSBC Global Strategy Dynamic fund more in line/comparable in equity holdings to VLS80?

AnotherJoe

Yanling wrote: »

If I invest with HL provider, they do not charge dealing fees for investing funds, is it ?

Correct. I think many providers do not charge for fund investments and HL certainly dont though they do have a high charge for holding which is why i am mostly shares/ETFs with them.



Am I right in thinking that most of that list is there since you cant decide and dont want to make the wrong choice? In which case be guided by fees for choice where they really are very similar. There's actually not much harm having overlaps just dont be fooled you are diversifying.


If you want to go a little off the mainstream i again dont see much harm in one or two extra but unless its a decent proportion of the original investment it wont make much difference in reality. £25 a month is only 3.5% of the £800 you are putting in elsewhere . So instead of your 8 investments at £25, I'd pick 2 at £100 so they can make a difference.


I suspect much of your reason for having them all is analysis paralysis, eg you just cant choose down to one so you pick 5 instead.