HSBC global strategy balanced or HSBC adventurous

ruthshaw2206

Considering investing 1000 into one of these 2 but can’t decide which. Tempted to the adventurous but it’s so new and although past performance can never tell future I wonder is if worth a risk. Has anyone else (ad)ventured into it? 

Albermarle

Many posters on this site will be invested in these products but which one you choose is up to you .
In theory the adventurous one should  grow more , especially over a long time scale . However in the short term it will go up and down more . So not everyone likes that and prefers the balanced one which should be a little less volatile. 

eskbanker

Always worth assessing your attitude to risk first and then finding investments that comply with it, so you need to work out what your risk tolerance is, nobody else can do that for you.

dunstonh

Tempted to the adventurous but it’s so new and although past performance can never tell future I wonder is if worth a risk. 

It should be pretty easy to estimate past performance on it.  At least enough to understand the sort of volatility that will likely happen.

The first thing you need to do is ascertain your risk level.  Not look at solutions from different risk levels.   On funds like this, there will always be higher upside in growth periods but more downside in negative periods.   Can you afford the higher risk?  Do you have the behaviour of a higher risk investor?

ruthshaw2206

Happy to take a high risk as per another post of mine it’s money I had written off as lost. 

csgohan4

why limit yourself to HSBC funds? Have you considered other funds/IT's?

ruthshaw2206

csgohan4 said:

why limit yourself to HSBC funds? Have you considered other funds/IT's?

I have 1000 in VLS80 but was wanting to put the other 1000 in something still diversified but with less of a UK bias. 

cloud_dog

Albermarle said:

Many posters on this site will be invested in these products but which one you choose is up to you .
In theory the adventurous one should  grow more , especially over a long time scale . However in the short term it will go up and down more . So not everyone likes that and prefers the balanced one which should be a little less volatile. 

Hi.... Just a comment but, you have missed out the middle ground option between these two funds, the Dynamic fund.

Alexland

I don't see much point in the HSBC GS Adventurous fund as if you have risk appetite to go nearly 90% equities you might as well go with a 100% equities index tracker such as HSBC FTSE All World and have lower costs compounding over the years.

But for the value of the SIPP you talked about in your previous thread it's probably not worth paying the SIPP platform premium (eg HL at 0.45%, Fidelity at 0.35% or AJ Bell at 0.25% but with fund trade fees) to have access to the HSBC funds when you could go with Vanguard Investor at 0.15% and, if you don't want the VLS UK equities bias, build a simple multi-asset portfolio using a 2 fund solution of their Vanguard Global All Cap equities fund at 0.23% and their Vanguard Global Bond Index Hedged fund at 0.15% in the proportions to match your desired volatility profile then rebalance once a year at a total cost of around 0.35% pa.

grumiofoundation

ruthshaw2206 said:

csgohan4 said:

why limit yourself to HSBC funds? Have you considered other funds/IT's?

I have 1000 in VLS80 but was wanting to put the other 1000 in something still diversified but with less of a UK bias. 

As Alex says above if you don't want UK bias you could switch from VLS to all-cap equities and bond fund. https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-global-all-cap-index-fund-gbp-acc/overview 

If you really want the ~15% UK bias that your 1:1 mix of VLS80 and HSBC fund (assuming is ~5% UK) will give you will you be rebalancing to maintain this if UK and rest of world do not perform the same? 

ruthshaw2206

Thanks guys, really something to think about. I have the vanguard ftse all world global cap index in my watchlist but can’t remember why I didn’t consider it. 

Not quite there yet understanding it all. So many choices. 

I probably would be best to move it to vanguard wouldn’t I? Although in my head I’ll have more to play with sometime and will invest it in a more ethical way. I don’t like that even those ones I am in have a portion in non renewable energy. 

It does seem a lot more expensive to invest in ethic funds though.