New to investing advice required

patch9495

Morning All,


I am new to investing and have setup a S&S ISA through Cavendish online. Not having a great deal of knowledge in the industry I have invested a small amount (1K) and decided to opt for managed funds opposed to individual stocks.
I am willing to take a little risk however don't wish for this to be a great deal.


My current portfolio includes 40% cyclical 28% Sensitive and 30% defensive stocks whilst being 50% active dividend focused stocks and 50% passively managed tracker stocks. I will be increasing the passively managed funds in due course.


Can anyone offer any further advice to each sector type allocation ratio I should go for along with active/passively managed fund split ratio

dunstonh

Can anyone offer any further advice to each sector type allocation ratio I should go for along with active/passively managed fund split ratio

My advice would be not to waste your time building a bespoke portfolio with a £1k investment.

Stick to a low cost multi-asset fund until you get closer to £100k.

patch9495

Hello and thank you for the response,


The managed funds I have invested in are multi asset funds consisting of stocks bonds cash and property.


The bespoke portfolio that you mention has been created through a combination of low cost multi asset funds recommended to me and I am seeking advice as to what balance ratio to try and strike with these

DrSyn

1. As you are new to investing I suggest you look at the following before you proceed any further:-

http://www.kroijer.com/

https://www.ifa.com/indexfundsthemovie/


2. I agree with dunstonh (post 2).

Multi-Asset Funds

Vantage Life Strategy
HSBC Global Strategy
L&G Multi Index Funds
Blackrock Consensus
Architas Passive

These have wide diversification while minimising risk, at low cost.

There is also Fidelity Multi Asset Allocator

Baillie Gifford Managed. Holds individual shares, rather than index funds.


3. This website might be of interest to you:-

https://monevator.com/category/investing/



Q. As a point of interest who recommend your bespoke portfolio to you. Why can you not have them give you advice on what balance ratio to strike with these?

eskbanker

patch9495 wrote: »

The managed funds I have invested in are multi asset funds consisting of stocks bonds cash and property.


The bespoke portfolio that you mention has been created through a combination of low cost multi asset funds recommended to me and I am seeking advice as to what balance ratio to try and strike with these

As above, the overwhelming recommendation on here for novice low-value investors will be to stick to one global multi-asset fund, but if you've gone down a different route based on recommendations from elsewhere then perhaps you should ask them for their thoughts about balance and allocation?

You could always post more detail about exactly what you've actually invested in, but prepare to be shot down in flames!

AnotherJoe

OP, Just to clarify have you bought with your £1k half a dozen different funds themselves consisting of underlying shares and bonds?

patch9495

I have purchased 4 multi asset funds 2 passively managed dividend and capital growth balanced funds and 2 actively managed dividend focussed funds consisting of shares bonds cash and property.


Within my stocks portfolio this has lead to a split on the shares of 40% cyclical 28% Sensitive and 30% defensive stocks.


I will be investing regularly monthly going forward prodmintantly into passively managed passive funds to try and bring my portfolio balance closer to 70:30 passive:active and wanted to see peoples opinions on where I should go from here

AnotherJoe

patch9495 wrote: »

I have purchased 4 multi asset funds 2 passively managed dividend and capital growth balanced funds and 2 actively managed dividend focussed funds consisting of shares bonds cash and property.

Within my stocks portfolio this has lead to a split on the shares of 40% cyclical 28% Sensitive and 30% defensive stocks.

I will be investing regularly monthly going forward predominantly into passively managed passive funds to try and bring my portfolio balance closer to 70:30 passive:active and wanted to see peoples opinions on where I should go from here

I am sure that most would concur with me that there's no point in micromanaging with (no offence meant ) such small amounts.


If you want 70:30 either find a fund that has that, or buy equal quantities of the same fund variant with 60:40 and 80:20. Or for now start with just one of those two,and later on switch to the other. I'd also get trackers to keep costs down.

eskbanker

AnotherJoe wrote: »

If you want 70:30 either find a fund that has that, or buy equal quantities of the same fund variant with 60:40 and 80:20.

As I read it, OP isn't looking for a 70/30 equities/bonds split like many would, but an active/passive split in those proportions.

I don't really understand the strategy or objectives, it reads to me like "I'm going to the supermarket and 30% of what I buy needs to be in yellow packaging and 28% of it needs to have the letter R in the name, so what size of trolley do I need and what should I cook for dinner?"....

patch9495

Being new to investing you could say that I am unsure myself of my strategy/objectives other than trying to beat the rates offered by savings accounts


I have opened up the S&S ISA to try and offer a gain on the poor rates currently given by savings whilst saving for the long term. This is why I have opened with a small amount.


Although I could live if worse case scenario all of the money were to be lost I would place myself between low and medium on the risk scale

ColdIron

patch9495 wrote: »

I have purchased 4 multi asset funds 2 passively managed dividend and capital growth balanced funds and 2 actively managed dividend focussed funds consisting of shares bonds cash and property.

There is really no point at all in mixing funds at this level of investment. I would just use one of the professionally managed ones listed in post #4, any of those will stand you in good stead until £30K and beyond. Why are you focussing on dividends? I am guessing you don't need the income now so you should be looking at growth or total return