Panorama 21/10/19

Sailtheworld

newbinvestor wrote: »

I have sympathy for those who have lost money but it is a reminder why I personally, will not put more than 5% of my portfolio is any one fund.

You won't get caught out by a Woodford but it's quite difficult to pick a single fund that will outperform by more than the fees being charged. Picking 20 is an impossibility and under performance almost guaranteed.

Seems quite difficult to manage too. I bet you've got lots of overlapping holdings and therefore increased individual stock risk. Not an issue if that's intentional but if you think those individual stocks are set to outperform you may as well buy them directly.

Thrugelmir

Malthusian wrote: »

I shouldn't have elided the word "personalised" the second time. Apologies for being unclear.

Regulated advice is a personalised recommendation and a list of 50 funds is not a personalised recommendation.

23% of HL's customers hold some sort of investment in the Woodford stable. £1.5bn was invested by HL customers in the quarter ended 30th September 2019. This story hasn't run it's course yet.

MK62

Sailtheworld wrote: »

You won't get caught out by a Woodford but it's quite difficult to pick a single fund that will outperform by more than the fees being charged. Picking 20 is an impossibility and under performance almost guaranteed.

Why do you think underperformance is almost guaranteed?, and how do you define underperformance?
Such a portfolio might underperform relative to another portfolio with just one or two passive funds, but but it might also outperform - there is no way to know beforehand.

Sailtheworld wrote: »

Seems quite difficult to manage too. I bet you've got lots of overlapping holdings and therefore increased individual stock risk. Not an issue if that's intentional but if you think those individual stocks are set to outperform you may as well buy them directly.

There's no way to know that without knowing the funds in question.....and even then it might not be clear as it can often be hard to discover a fund's full content beyond it's top 10 holdings.
That said, you could probably come up with 20 funds with little overlap just by selecting from different IA sectors, and doing a bit of digging/research.
As to whether it's worth it, and whether you'd end up with a form of global multiasset tracker portfolio anyway......only time would tell on the first question, and on the second, at least you'd have more control over the weightings/allocations (though to be fair, that's not to say you'd be more likely to get it better)

Thrugelmir

bostonerimus wrote: »

roughly 50/25/25. International is here

https://investor.vanguard.com/mutual-funds/profile/portfolio/vtiax

Just over a 4% annualised return since the inception of the fund in 2010. You need the $ to weaken.

bostonerimus

Thrugelmir wrote: »

Just over a 4% annualised return since the inception of the fund in 2010. You need the $ to weaken.

Yeah international has been a drag for us in the US