HSBC Global Strategy Vs Vanguard LifeStrategy

[Deleted User]

waveydavey48 wrote: »

I'm trying to educate myself so please forgive me if I have this wrong.

My understanding was that if someone doesn't want to use an IFA they could DIY and that would require them to decide their objectives and appetite for risk then research what funds are suitable for their situation. They would then buy those funds (say about 6), wrapped in a SIPP, and they would have to review their portfolio, probably annually and make any changes.

Is it the case, as it seems from the posts above, that there is a simple "fire and forget" option ie just place the lot in VLS or HSBC global strategy?

I believe VLS (and presumably HSBC GS) is rebalanced automatically so there's actually no need to do anything if you don't want to?

I know lots of forum members are interested in investing and I'm full of admiration but is the above a reasonable option for those of us who have no interest in the subject but want reasonable returns but don't want to use an IFA?

Absolutely.

By the way, there is a school of thought, which believes that “buy and forget” is always the best approach for your returns, as long as you have a diversified portfolio. Rebalancing helps those who regularly look at portfolios to keep their sanity during downturns. That’s because rebalancing usually moves stocks (higher return, higher volatility into bonds) and hence reduces the maximum drawdown. Doesn’t actually help long term returns.

The main risk to long term returns is investor himself who does something stupid after a major bear. Many people who say they can withstand major drops during the good times, actually can’t. The other risk is an advisor; a bunch of them recommend unnecessarily complex portfolios or portfolios with too much cash and high fees.

Albermarle

A halfway house is to use a simple, low cost multi asset fund(s) as the backbone of your portfolio but also have some managed funds/Investment trusts
This could be because you have a particular interest/optimism about a certain sector ( ethical , health etc ) or you have faith that some managed funds can beat the market or act as a good defence in bad times .
Plus it is more interesting than 100% in Life strategy !

[Deleted User]

Albermarle wrote: »

Plus it is more interesting than 100% in Life strategy !

“Interesting” is not usually a good philosophy for buying an investment.

fronty

Albermarle wrote: »

Plus it is more interesting than 100% in Life strategy !

Love this idea! :rotfl:

BLB53

Personally, I prefer the HSBC funds. The VLS is overweight in oil due to its 25% allocation to the UK and with climate change and big pension funds divesting away from oil, I believe the VLS funds will underperform.

Until this year I had quite a large percentage of my portfolio in VLS but have now completely sold out.

OldMusicGuy

Albermarle wrote: »

A halfway house is to use a simple, low cost multi asset fund(s) as the backbone of your portfolio but also have some managed funds/Investment trusts

That's where I started out. Put 60% into multi asset funds and 40% into an actively managed income focused fund to generate income in retirement.

I soon realised that was not the approach for me, maybe because I used Woodford Income Focus as the active income fund :eek::rotfl:

Got out of that after 9 months and realised all low cost multi-asset was the way to go. Can't see any logic in riding the luck of some stock picker for a fee, but that's probably just me.....

FWIW I hold both VLS and HSBC, plus another low cost multi-asset fund.

green_man

I intend to used HSBC GS shortly, I prefer a higher percentage in my home uk market but I would prefer supplementing with a uk mid or small cap fund to bring the percentage up (and possibly a global smaller companies fund as well).

To the OP I’m sure if you poked around this site much you would have seen them mentioned, but you also need to consider similar Blackrock and L & G multi asset funds that do a similar thing. Research all options, all have their fans, none could be considered a bad choice ( assuming you understand this risk profile of each)

waveydavey48

Thanks for those informative replies folks - helpful as ever.

Can I just ask if there's any need to go with more than 1? We are building up S&S with VLS. Is having a SIPP also with Vanguard a case of "eggs in 1 basket"?

Apologies to OP if I've gatecrashed your thread!

[Deleted User]

waveydavey48 wrote: »

Thanks for those informative replies folks - helpful as ever.

Can I just ask if there's any need to go with more than 1? We are building up S&S with VLS. Is having a SIPP also with Vanguard a case of "eggs in 1 basket"?

Apologies to OP if I've gatecrashed your thread!

No need to go with more than 1. You already own the world; the fund is just a wrapper. The only reason to own more than one for me would be if you want more control and to invest in different factors (e.g small, value, momentum, quality, etc). Still, simplicity is a good thing.

As Vanguard is a wrapper, I don’t see an issue of using it in multiple accounts.

cfw1994

Deleted_User wrote: »

“Interesting” is not usually a good philosophy for buying an investment.

I think it is!!
Especially if you are able to accept that you may be backing a loser :rotfl: