My portfolio below, how would you adjust it so that it has the chance to grow to £400K in 5/6 years,

itwasntme001

£400k including the £40k you will add?  You seem to have a mix of random funds which show no real thought has gone into it and judging by your comments, you seem to want to invest further in the stuff that has done exceptionally well recently.  Furthermore you do not make it clear how much risk you are willing to take and how your ISA portfolio fits in with your wider overall portfolio which may include pensions.  So incredibly difficult to answer anything more than suggest speculative punts as the above post by AnotherJoe seems to point to (which by the way is incredibly dangerous if you expect continued performance).

I am not so sure at all with your current portfolio and especially after doing what AnotherJoe suggested that you will reach your goal in 5 years because the world can very well look quite different to today's world.  In my opinion, without looking at your overall portfolio, your best bet is to just sell the lot and stick to a global stock market index fund (such as LS or all cap).  Not only will you not have to think much about this any more and therefore reduce the risk of errors, but you will be investing in a fund that allocates capital much more efficiently then you ever will at a relatively low cost.

itwasntme001

I say the above as someone who owns the usual suspects that have done well - SMT, PCT, fundsmith, BG GD, hell I even own single name company stocks like Amazon and MS.  But I know that at some point these will probably start to under perform a tracker and even suffer significant 50% draw downs.  But these are risks I am willing to take and understand that they can happen.  With your £400k goal in 5 years I can not see how anyone can answer this question for you because its such a short time frame and there are no riskless ways to achieve this so probably the best risky way to do it is with a global tracker of some kind.

tafelmoneysaver

Pleae do check my maths, but an online savings caulator I found with a Google search, suggested that a monthly contribution of £600 over 6 years (£43,200) would take £315k up to £358,200 so only need a 2%APR growth to hit £400k.

You are not too far away from 2% with the top paying 5 year fixed rate cash saver. So why put the money into higher risk funds?

frugal90

Thrugelmir said:

What's JPGI? 

HFEL has a 7% yield and has been increasing every year.  Reinvestment of income is as important as pure capital growth. 

It is now nearer 8% ( from HL-Dividend yield: 7.67%) and something tells me that it might not be the time to sell, if I re-invest the dividends then they are buying more at a cheap price?

What I may do is what I usually do when I have any uncertainties and that is nothing.
What does everyone think the prospects of HFEL and CTY are over the next few years? 

Thrugelmir

frugal90 said:

Thrugelmir said:

What's JPGI? 

HFEL has a 7% yield and has been increasing every year.  Reinvestment of income is as important as pure capital growth. 

It is now nearer 8% ( from HL-Dividend yield: 7.67%) and something tells me that it might not be the time to sell, if I re-invest the dividends then they are buying more at a cheap price?

As with CTY, remember that you can use the income generated to diversify.  No need to reinvest back into existing holdings.  

Take the time to x-ray your portfolio. Rebalancing need not mean selling a holding entirely. 

Alz1986

To get from 300k+ to 400k+ is only less than 30%. In my opinion, a 30% return after 5 years is poor, so 5 years to return 30% is plenty of time, you could probably achieve more than 70%.

I would say cut down on the number of funds/Trusts you hold to about 5. Avoid UK and Europe (for now). Focus on China, Japan, USA and emerging markets. 

coachman12

Extend companies and sectors, diversify and get a nice balance between the different sectors you decide to focus on ( naturally avoiding the sectors which Covid have made into "please avoid" ).  Geography is not a main concern IMO, it is the research you put into the companies that catch your eye that really matters. It's a lottery. The biggest winner in the FTSE 100 this year has been a company I have held shares in for many years  : Ocado (currently at about 2600 GBX ) which I bought upon floatation some years back at 50p per share and bought another 4000 shares in mid-July this year at 1900 GBX ; similarly I have seen a rise of about 100% in my several thousand Paypal shares. But I have also seen falls in hospitality and travel and aero shares which I dumped as soon as the first lockdown started, so got off fairly lightly. I recommend research, balance and surveillance as the key factors ( or, if lazy, check forecasts for good old Blue Chips ). Best Wishes and Good Luck.

mark13

Agree with the above, more SMT and buy INRG. I would check the performance of each of the investments and move money from the less productive funds to the better performers. Assume you monitor the performance of each of the funds in a spread sheet to ensure there are no slackers. 

Prism

coachman12 said:

Extend companies and sectors, diversify and get a nice balance between the different sectors you decide to focus on ( naturally avoiding the sectors which Covid have made into "please avoid" ).  Geography is not a main concern IMO, it is the research you put into the companies that catch your eye that really matters. It's a lottery. The biggest winner in the FTSE 100 this year has been a company I have held shares in for many years  : Ocado (currently at about 2600 GBX ) which I bought upon floatation some years back at 50p per share and bought another 4000 shares in mid-July this year at 1900 GBX ; similarly I have seen a rise of about 100% in my several thousand Paypal shares. But I have also seen falls in hospitality and travel and aero shares which I dumped as soon as the first lockdown started, so got off fairly lightly. I recommend research, balance and surveillance as the key factors ( or, if lazy, check forecasts for good old Blue Chips ). Best Wishes and Good Luck.

Ouch, yesterday must have hurt a bit with gold, Paypal and Ocado all significantly down. You must have dropped £100k or so in a day.

coachman12

No probs. It would take a lot lot more than that to make a slight dent in my portfolio ; and I'll be holding the shares you mention. You fail to address the point that Ocado is still the most successful FTSE 100 company over previous 12 months, with astronomical growth around the 100% mark. No, I will sleep easy.
As for gold, the whole joy of it is that a minor blip matters not a jot. It is real wealth and joy--always.
I'm sorry that I sold my Rolls Royce shares as soon as the first lockdown , together with other related "covid-unfriendly" shares such as my Intercontinental Hotels holdings----but I'll buy again carefully as more news of the vaccine proceeds. Thanks and good luck with your own portfolio which I hope is prospering. We may both at this moment be thinking similarly of how to take advantage of the price falls due to the first wave of covid and now beginning to rise again from the ashes. Thx.