Building a portfolio opinion, thanks

MallyGirl

Yanling wrote: »

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

No idea - I don't use HL. You may well be right on that.

You are still making life more difficult than it needs to be

Yanling

AnotherJoe wrote: »

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.

Thanks you all for the help! I am going to invest £50 pm to Lindsell train global equity income to cover my platform fee, Baillie Gifford managed £200 pm, HSBC £200, Blackrock consensus £150.
L & G international £50 as it has more investment on healthcare and biote, other 6 index funds £25 pm.
How is that?
the reason that I choose more funds is to diversify to different fund companies, sectors, coutries and holdings, and reduce the risk.
Many thanks again

AnotherJoe

I am going to invest £50 pm to Lindsell train global equity income to cover my platform fee,

I personally dont like income funds since i think they are constrained to the investments they buy by the need to pay income. Just keep a little bit of cash in the account for payments rather than buying an investment you dont really want. Just add a little extra cash you dont invest. After all, as an example, if you put in £8 that will be bumped up to £10 so its quite tax efficient.

greatkingrat

If you want some income to cover the fees, you can just buy the Inc class rather than the Acc class of one of your holdings, it doesn't need to be a fund specifically aimed at producing income.

cloud_dog

Audaxer wrote: »

As a matter of interest, which fund?

My AVCs are via Prudential and I am fairly limited in fund scope. For these contributions I have deliberately chosen to ignore bonds and I'm utilising Prudential International Equity S3 for the time being.

Off topic - I have enquired if I can periodically (possibly biennially) transfer the AVC to a SIPP (for more flexibility / investment range) and then continue with my AVC contributions. The jury is still out on that one; 3 months so far I think)

Yanling

AnotherJoe wrote: »

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.

Hi All, I do think I have some similar funds, so should I invest a bit on something different? such as precious metals? any recommendation? Cheers!

Alexland

Sue58 wrote: »

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?

The HSBC GS funds tend to have slightly higher equity proportions and higher risk bonds so my risk assessment of the HSBC GS Balanced is that it sits between VLS60 and VLS80. Since switching down to HSBC GS Balanced in January it hasn't really made much difference but I am considering the advantages of going back to VLS80 are (i) UK listed companies are looking better value (ii) the partial currency hedging on the bonds and (iii) equities tend to compound better after negative or negligible years.

Yanling wrote: »

the reason that I choose more funds is to diversify to different fund companies, sectors, coutries and holdings, and reduce the risk.

You don't need lots of funds to diversify as it's perfectly possible to buy one fund where the fund manager has constructed the portfolio to ensure there is a diverse range of underlying holdings.

greatkingrat wrote: »

If you want some income to cover the fees, you can just buy the Inc class rather than the Acc class of one of your holdings, it doesn't need to be a fund specifically aimed at producing income.

On HL the discounted LTGE Class D is only available as an Income fund. I held it for a while in my LISA but have switched to the discounted Blackrock Consensus as I suspect LTGE might eventually run out of steam.

cloud_dog wrote: »

Off topic - I have enquired if I can periodically (possibly biennially) transfer the AVC to a SIPP (for more flexibility / investment range) and then continue with my AVC contributions.

Great if they let you - my SIPP is the result of a partial transfer out of my current workplace scheme.

Alex

Yanling

Hi, Thanks for the help. I have an Isa with Vangard, so I do not need it in my sipp. because this market is huge and global, most countries have thousands funds and shares. it may be better putting eggs in a few baskets , is it?

Audaxer

Alexland wrote: »

The HSBC GS funds tend to have slightly higher equity proportions and higher risk bonds so my risk assessment of the HSBC GS Balanced is that it sits between VLS60 and VLS80. Since switching down to HSBC GS Balanced in January it hasn't really made much difference but I am considering the advantages of going back to VLS80 are (i) UK listed companies are looking better value (ii) the partial currency hedging on the bonds and (iii) equities tend to compound better after negative or negligible years.

Hi Alex, another option which may be worth you considering could be Baillie Gifford Managed B fund. It is an active multi asset fund with about 73% equities but has a similar performance over the past 5 years to the VLS80. Although it is an active fund it has an OCF of only 0.43% and has a very good record of returns over 30 years.

Yanling

Hi Audaxer, Could I ask if you buy a Gold or/and precious metals fund? Thanks !