Amateur investor seeks investment portfolio advice please

Alistair31

This is one thread where I hope the OP returns and shares his fund choices and total invested in each. 

badger09

Alistair31 said:

This is one thread where I hope the OP returns and shares his fund choices and total invested in each. 

Sadly, I'm not sure he will.

OP pops in one in a while, 2009, 2013, asking similar questions but doesn't come back with any meaningful update.

Depending on the size of his 'reasonable investment portfolio' currently spread over 50 funds, I think he would benefit from some advice from an IFA 

flopsy1973

I am in a similar position to you way too many funds and fallen for lot of hl hype in my earlier  days. I have seen 2 IFA but they did no fill me with confidence with what they could offer me so hence learning bit more and going to try diy. Please feedback with more about your portfolio it may be helpful to others 

Grandst2

You have turned yourself into a fund of funds manager, one or two multi asset funds with a few specialist funds will replicate what these 50 funds are doing without the headache and cost.

Woggy67

Hi,

Firstly, apologies for the late reply.  It has been a 'testing time' last week with Internet connection issues; a boss who has told me he is now under 'a lot of pressure' to furlough me; and a family member feeling ill with a dry cough.  Hence lots on my mind.

Secondly, many thanks to all who have taken time to reply.  The comments and insights really are appreciated.  I am particularly pleased to hear that there are others like me out there who have acquired funds and now hold what may be described as an 'unstructured or unfocused' portfolio. Hence my questions.

I am happy to return and post again in response to requests for clarification etc.  I will gather my thoughts and information together and then post again, hopefully later this week.

One final question, I note that the preferred format is to “quote” someone in your reply.  If anyone has any advice or a link to how to achieve this it would be appreciated and no doubt help me when replying to specific points/questions.

 
Once again, thanks.

eskbanker

Woggy67 said:

One final question, I note that the preferred format is to “quote” someone in your reply.  If anyone has any advice or a link to how to achieve this it would be appreciated and no doubt help me when replying to specific points/questions.

The exact way the forum displays is likely to vary across different browsers, operating systems, etc, but I believe that most include a clickable 'quote' option immediately below each post, which when clicked populates the 'edit post' window with the relevant text, which can then be edited if required (as above), and responded to....

[Deleted User]

Yes the quote function is a bit weird here, you press the button then scroll down to see the result and then start typing

MaxiRobriguez

There's only really two obvious answers to your post, OP:

1) 50 funds is too many. I agree with others that it's pretty much guaranteed to be unstructured and you'll suffer from reversion to the mean. Having 50 funds is probably also putting you off doing your own research, simply because 50 is too many to keep an eye over, whereas 10 might not be.
2) You say you have a sizable portfolio. Given your other points, and repeatedly reaching out for help on here, I would suggest at least meeting with an IFA a few times to sit down with someone face to face is going to help your understanding of what you want to achieve and how, even if you don't follow all their advice. 

Woggy67

Hi,

Firstly thanks to those who advised about how to quote people.  As I am still experiencing a few IT issues I am doing this the old fashioned way for ease and to save time, but it is useful to know for future reference.

 

Now onto the replies to my original post.  My thanks and comments are below:

Dunstonh – sensible questions (which in many ways sadly highlighted my ‘amateur’ stance) plus some sound advice for me to consider in moving forward.

George4064 – That is really generous of you to offer comment on my 50 funds.  If I decide to take the DIY route I may well come back to you.

Alexland – You hit the nail on the head in that I don’t really know how my 50 funds have performed collectively and having thought about it and seen the comments I really don’t need the complexity of 50 funds.

HarryGray – Really useful advice.  I wasn’t aware of the ‘MCSI weightings and global market cap’ so this was really intriguing and useful advice for an ‘amateur’ like me. 

Malthusian – Useful clarification of what an IFA would/would not do

OldMusicGuy – Great to hear that I am not alone.  Even more interested to hear that you used HL to review your investments and felt you got a ‘thorough review’.

Sailtheworld – It’s a sensible point, but upon reflection I feel that I don’t have ‘an investment edge’ in terms of actively selling underperforming and buying those likely to perform.

Kinger101 – A very well made point, which I hadn’t grasped.  Upon reflection I am watering down the performance by having too many funds.

Alistair31 – I have come to the conclusion that my ‘haphazard’ approach to building a portfolio is not where I want to be, so little point in sharing what will be a just a list of 'soon to be sold' funds.  Thanks for your interest though.

badger09 – You make a very valid point in that I do ‘dip in and out’, usually at times when I am looking to understand my next move.  I hope this isn't seen as negative because it certainly isn't meant to be.  I always thank those who take time to reply and I am genuinely grateful for having access to the forum and the wealth of views.  It helps provide a sounding board to aid in my decision making.   As far as updates go I have never thought to post an update as once the replies were in and the discussion over I have just moved on and eventually made some decisions as best I could.  I genuinely thought that people would have lost interest in my ramblings and be onto the next post.  I guess in many ways the information I've included here is my update, albeit some years later.  Based on your point I will certainly give some thought to posting an update if I get some useful advice following review by an IFA.

flopsy1973 – Again, great to hear that it isn’t just me.  Point noted about feedback.

Grandst2 – Succinctly summarised, once again hitting the nail right on the head.

Eskbanker and Deleted_User thank you for the advice on using the quotes. 

MaxiRobriguez – Points 1) and 2) duly noted.  I especially liked the point about getting advice to gain understanding of my goals and the fact that I ‘don’t necessarily need to follow all the advice’.  You will see below that what you have suggested is the way I plan to proceed, providing I can find the right IFA.   

 

So now for the conclusion.

 

Having now had time to read and properly digest the comments from those who kindly replied, I feel that I am in a better position to comment.  The replies have been very helpful in confirming my concerns:

A)   That I have too many funds which waters down any gains and makes it virtually impossible to ‘manage’ them

 

And

 

B )   That I don’t have the time, knowledge or the real inclination to actively ‘manage’ my funds.

So with the above points A) and B ) in mind my plan of action is as follows:

1)    Firstly consider my strategy for the next few years, so that I am clear about what I would like to achieve between now and retirement, then;

 

2)    Try and find an IFA with relevant qualifications/experience/recommendations and reasonable charges and request a financial review to cover my investments and future pension provision etc.

 

Or

 

3)    If I can’t find a suitable IFA then I revert back to DIY with a view to selling most of my funds, perhaps keeping up to 10 best performing funds and then reinvest all the proceeds into buying some trackers etc.

I have contacted HL and await a call back with regard to what they can offer.  In addition I have looked at the advice on MSE regarding finding a suitable IFA and I am presently looking through the IFAs on the recommended websites.

In the meantime if anyone would like to offer any further insight into choosing an IFA or choosing tracker funds your comments will be gratefully received.

 

Sebo027

@Woggy67
1. X-Ray - You should use the Hargreaves Lansdown X-ray tool. It will be able to tell you the allocation of all investments globally and a breakdown by industry, sector etc. I think that would a good start. You can see, for example, where you are over exposed / under exposed across all of your holdings. If you open a Morningstar account you can do something similar, although the feedback they provide is far superior. 
2. I think you should speak to an IFA. A key question is what you want them to do / input do you want from them? Key inputs will be retirement age, plans for retirement. That'll help understand your number and how hard you want your money to work between now and retirement and beyond retirement. 
3. 50 funds seems alot to keep track of..