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New to investing - Building a portfolio

I have recently opened a Vanguard Stocks and Shares ISA and invested in the FTSE Global All Cap Index Fund. After much research it seems to be a good place to start my investing journey which I plan on doing for the next 10 years+ until I retire (maybe beyond!) and one I am pleased to see a very modest return so far in the last few months I have been drip feeding into it.

My question is I am thinking of open up a Bond Fund as part of a diversified portfolio. I am currently considering the Vanguard Global Bond Index Fund and the Global Corporate Bond Index Fund. Do any of you seasoned investors have any helpful tips for a new investor as to which I should be looking at. If I should at all?

l look forward to your replies.

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Comments

  • dunstonh
    dunstonh Posts: 118,602 Forumite
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    edited 14 August 2020 pm31 12:57PM
     I am currently considering the Vanguard Global Bond Index Fund and the Global Corporate Bond Index Fund.

    Global bonds are currently out of favour as they do not offer much in the way of risk reduction.  And Global Corp bonds even more so.   So, what is it about them that appeals to you?


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • coachman12
    coachman12 Posts: 1,069 Forumite
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    Have you had a look at The Northern Global Sustainability Index Fund , soulbro ?  It may be a good idea to branch out from Vanguard as you are already a customer. And the Northern Global seems pretty solid----as much as anything can be. I have had no dealings with it but it gets pretty good reviews from what I see.
    Good luck in all your ventures, soulbro.
  • eskbanker
    eskbanker Posts: 35,339 Forumite
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    Have you had a look at The Northern Global Sustainability Index Fund , soulbro ?  It may be a good idea to branch out from Vanguard as you are already a customer. And the Northern Global seems pretty solid----as much as anything can be. I have had no dealings with it but it gets pretty good reviews from what I see.
    Good luck in all your ventures, soulbro.
    Having already paid into a Vanguard [Investor] S&S ISA this tax year, OP can't invest in anything not available on that platform until next April, unless he decides to do so outside the ISA shelter....
  • dunstonh said:
     I am currently considering the Vanguard Global Bond Index Fund and the Global Corporate Bond Index Fund.

    Global bonds are currently out of favour as they do not offer much in the way of risk reduction.  And Global Corp bonds even more so.   So, what is it about them that appeals to you?


    What is in favour for risk reduction?
  • Alexland
    Alexland Posts: 10,183 Forumite
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    My view is the reason you are putting something into bonds is for the historic Yin and Yang inverse relationship so for bonds I would want high quality accepting they are lower yield so not hold any more than necessary to achieve the desired balance of volatility control against likely return. Rather than going too heavy into bonds you might also want to consider holding some cash, gold, etc although probably not on the Vanguard platform. With only 10ish years until you start drawing the money you probably wouldn't want to be 100% equites and there might be more suitable tax wrappers such as a pension depending on your circumstances.

  • Albermarle
    Albermarle Posts: 25,993 Forumite
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    dunstonh said:
     I am currently considering the Vanguard Global Bond Index Fund and the Global Corporate Bond Index Fund.

    Global bonds are currently out of favour as they do not offer much in the way of risk reduction.  And Global Corp bonds even more so.   So, what is it about them that appeals to you?


    What is in favour for risk reduction?
    Cash , gilts , gold ( for some ) 
    You can include some corporate bonds in your portfolio , to keep some balance with the equities , but the current thinking is not to rely on them too much in case of a market downturn . In other words if equity markets go down , these bonds may follow to some extent. As always not everybody would have the same opinions on this topic. 
  • coachman12
    coachman12 Posts: 1,069 Forumite
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    edited 14 August 2020 pm31 1:39PM
    eskbanker said:
    Have you had a look at The Northern Global Sustainability Index Fund , soulbro ?  It may be a good idea to branch out from Vanguard as you are already a customer. And the Northern Global seems pretty solid----as much as anything can be. I have had no dealings with it but it gets pretty good reviews from what I see.
    Good luck in all your ventures, soulbro.
    Having already paid into a Vanguard [Investor] S&S ISA this tax year, OP can't invest in anything not available on that platform until next April, unless he decides to do so outside the ISA shelter....
    Quite correct, eskbanker----my apologies; I have hardly ever been in an ISA at all,and certainly not in the recent past or now, thus  I forget such important details. So not surprisingly, if I were the O/P, I would go outside the "ISA shelter" as you aptly put it and  play the market by myself, pick a couple of good FTSE 100 companies, currently priced on the low side, and see how it goes from there. But I don't know how much finance is involved and I don't know if O/P wishes to do the time-consuming research that "independent" trading requires. Thanks again for reminding me that ISAs are alien beings to me. TY.
  • dunstonh said:
     I am currently considering the Vanguard Global Bond Index Fund and the Global Corporate Bond Index Fund.

    Global bonds are currently out of favour as they do not offer much in the way of risk reduction.  And Global Corp bonds even more so.   So, what is it about them that appeals to you?


    dunstone thanks for your reply.
    As I said I am new to investing so still learning but from the information out there a good performing bond fund appears to be a recommended choice in conjunction with an equity fund for a diversified portfolio.
    Keeping them combined under the Vanguard ISA wrapper also helps me while I'm starting out with fees and convenience really.

  • eskbanker said:
    Have you had a look at The Northern Global Sustainability Index Fund , soulbro ?  It may be a good idea to branch out from Vanguard as you are already a customer. And the Northern Global seems pretty solid----as much as anything can be. I have had no dealings with it but it gets pretty good reviews from what I see.
    Good luck in all your ventures, soulbro.
    Having already paid into a Vanguard [Investor] S&S ISA this tax year, OP can't invest in anything not available on that platform until next April, unless he decides to do so outside the ISA shelter....
    That is correct eskbanker.
    Trying to start off simple with just the ISA for now and keep fees etc. To a minimum.
  • Alexland said:
    My view is the reason you are putting something into bonds is for the historic Yin and Yang inverse relationship so for bonds I would want high quality accepting they are lower yield so not hold any more than necessary to achieve the desired balance of volatility control against likely return. Rather than going too heavy into bonds you might also want to consider holding some cash, gold, etc although probably not on the Vanguard platform. With only 10ish years until you start drawing the money you probably wouldn't want to be 100% equites and there might be more suitable tax wrappers such as a pension depending on your circumstances.

    Alexland said:
    My view is the reason you are putting something into bonds is for the historic Yin and Yang inverse relationship so for bonds I would want high quality accepting they are lower yield so not hold any more than necessary to achieve the desired balance of volatility control against likely return. Rather than going too heavy into bonds you might also want to consider holding some cash, gold, etc although probably not on the Vanguard platform. With only 10ish years until you start drawing the money you probably wouldn't want to be 100% equites and there might be more suitable tax wrappers such as a pension depending on your circumstances.

    Alexand thank you.
    Yes the reason for bonds is the "Ying and Yang" effect that has been advised by many in building a portfolio. 
    Hopefully to offset the inevitable losses over the time my portfolio is invested.
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