Investment management

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  • RobHT
    RobHT Posts: 348
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    There could be some sense in having VLS 60 and also a similar fund from a different provider , such as HSBC global strategy or Fidelity multi asset allocator or others . VLS has quite a significant home bias whilst the other two mentioned do not. Regardless of your views on home bias , it could be sensible to diversify in this way .
    So you mean that Vanguard has same funds for all VLS plans? And is it just about the level of difference in funds/bonds?

    Ok for the different company in the sense of that is a different company/platform, on this I give green flag, I'' evaluate similar platforms.
    So, what are the competitors in UK? Only HSBC? Anything like Allianz?
  • Alistair31
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  • barnstar2077
    barnstar2077 Posts: 1,318
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    I too thought he might be trolling, but now I think he is just young.
    Think first of your goal, then make it happen!
  • csgohan4
    csgohan4 Posts: 10,587
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    edited 2 August 2020 at 8:46PM
    OP as mentioned before you have much to learn. Having basically three VLS which overlap with each other is duplication and unnecessary, it's like having x3 separate Ftse All share funds by three different providers, which cover basically similar companies. Pointless. 

    You need to have a clear strategy, what you want and your outcome, if you truly planned on VLS x3, then stick with it, but ensure you can justify it and plan for the worse too

    I think it may be prudent to take a look at the Target retirement funds
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

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  • RobHT
    RobHT Posts: 348
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    OP, I find it hard not to believe you're a troll, has it not sunk in to you from all the comments you've had that having VLS 40/60/80 is the exact same as having 60 alone? 
    And that having FTSE100/250 is a terrible investment?
    And adding them alongside your VLS is increasing your mistake by putting even more concentration into oil and finance, two places you really dont  want to be?
    You say "I'm a newbie" as excuse and ask for advice, yet then you simply brush off and ignore everyone's comments about what a terrible strategy it is ????????

    And dont think folk here are being smug, many of us, including me, made these sort of mistakes at the start of our investing lifes, especially back before the internet made it so easy to gain and share information, so why not try to profit from the experience and mistakes others made rather than be so dumb as to plough on with your own "newbie" strategy.

    If what you've written is true, and this is a 20 or 30 year strategy, you could easily end down hundreds of £k down from were you woudl have been at the end of that. And say in ten years time you decide "oops that was a mistake" and move to a more sensible strategy, well the half sized investment you have then, say £50k instead of £100k,  when you multiply it up over the next 20, now your  (say) £500k you eventually end up with, thats would have been a million had you started properly. So, in that example, you didnt lose £50k you lost £500k.
    Its your financial funeral.

     


    I had a better "quick" look to FTSE, it seems you are right... That's one thing I need to correct asap, if it decrease too much, let's say below 20%, I retire these funds, just as last resort measure, and luckily it's the start of my investments :D .

    How did I make that mistake is not entirely clear, probably I've got even confused with other funds, reason why I need to stick with just few in order to be able to manage them, or follow them passively without fill my head with many informations.

    Different is with blue chips, I'm planning to have around 20-30 companies that I know well, but this will come with the time...

  • RobHT
    RobHT Posts: 348
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    csgohan4 said:
    OP as mentioned before you have much to learn. Having basically three VLS which overlap with each other is duplication and unnecessary, it's like having x3 separate Ftse All share funds by three different providers, which cover basically similar companies. Pointless. 

    You need to have a clear strategy, what you want and your outcome, if you truly planned on VLS x3, then stick with it, but ensure you can justify it and plan for the worse too

    I think it may be prudent to take a look at the Target retirement funds
    Thanks, other details about FTSE have been shared in the previous answer.

    I will search a better justification to have different VLS then, who knows if that reason exists in its worthiness :D 
  • bowlhead99
    bowlhead99 Posts: 12,295
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    edited 5 August 2020 at 6:49AM
    RobHT said:
    csgohan4 said:
    OP as mentioned before you have much to learn. Having basically three VLS which overlap with each other is duplication and unnecessary, it's like having x3 separate Ftse All share funds by three different providers, which cover basically similar companies. Pointless. 

    You need to have a clear strategy, what you want and your outcome, if you truly planned on VLS x3, then stick with it, but ensure you can justify it and plan for the worse too

    I think it may be prudent to take a look at the Target retirement funds
    Thanks, other details about FTSE have been shared in the previous answer.

    I will search a better justification to have different VLS then, who knows if that reason exists in its worthiness :D 
    Good luck, I expect it doesn't. Nor to have the different VLS funds and supplement them with arbitrary allocations of funds already held by the three different VLS funds that you own. 

    ...or follow them passively without fill my head with many informations.
    If the many informations aren't giving you a credible guide to why you should structure your portfolio in the way you suggest, you have probably misunderstood.

    Different is with blue chips, I'm planning to have around 20-30 companies that I know well, but this will come with the time...
    Simply come to terms with the fact that you don't know the financial condition of 20-30 companies better than the professional investors who recruit teams of full-time analysts to investigate them, and whose trillions of pounds of investments shape the stock markets. Then you won't need to waste your time or money considering which 20-30 of the tens of thousands of companies on the planet would make the best ones for you to acquire an equity interest.


  • darkidoe
    darkidoe Posts: 1,125
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    edited 4 August 2020 at 12:28AM
    RobHT said:
    The first thing that come up in my mind is why should I have only one VLS, the percentage I pay to Vanguard is almost always the same, and I wish to perform in all them + having the security that they are different level of risk due to the funds/bonds percentage, the very simple 1st reasoning on it.
    Concentrate all my funds to only one VLS doesn't make me feel safe (emoctions !!!-_-!!!), and in general, I consider it a good move anyway.

    Have you looked and compared the underlying component funds in the VLS 40, VLS 60 and VLS 80

    If not, please do and consider why there might be overlapping funds in the VLS.
    They are similarly structured funds of funds but have different allocations of bonds to alter portfolio volatility. The security of owning different 'risks' as a reasoning is such that your risk is averaged out in effect to the middle one which is VLS60.

    For example, if you order three cups of tea, tea with no sugar, tea with a little sugar and tea with a lot of sugar and mix them up in similar proportions, you will on average get tea with a little sugar. Hence its simpler to just order tea with a little sugar. 

    Again if you look into the component funds, you will see that because of the overlap in the funds, the reason you don't feel 'safe' in just one VLS fund hasn't been addressed by investing into other VLS funds which do invest in the same underlying funds because if one VLS runs into trouble, the other will likely have issues too.

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