Where and how to invest £200k - platform and fund choice, given a certain risk appetite

Albermarle

I do have an idiots question in that  - would I not be better off say putting £70k in HSBC Global Strategy Balanced  £70k, in the Vanguard 60:40, £60k in Fidelity Multi Asset Allocator (although having taken a bath on the special situations funds, feel a bit nervous about them), 

Personally I think it is a good idea to have more than one multi asset fund, as they are not all the same so it is an extra level of diversification. Although it does not seem a very popular approach for some reason. Vanguard and Fidelity are fixed allocation . The former has a home bias and the latter does not. HSBC does not have a fixed allocation and is risk targeted. Of course if you compare the results of HSBC balanced with VLS 60 and Fidelity growth they are not that different but they are not the same . 

The fact that a Fidelity active fund did not do well is totally irrelevant  to its passive multi asset option 

apollo9

That's great to know. I like the idea of not having all my eggs in one basket.

I need to see if iweb does allow hsbc global funds or not, and then I can transfer the money out of Fidelity. I also need to figure out how to make sure I do an ISA transfer

ANGLICANPAT

i web does hold  the hsbc  funds , Im just about to  put OH's  isa money in for him  . However   the one we'd picked  the  global balance,C,  Id thought was  equal in risk , more to Vanguard  40  , but reading this thread its  apparently  closer to Vanguard 60 ?.  Somehow Ive got the idea that  anything with 'balanced' in the title would be  in the middle of   low to high risk ? 

Alexland

If you look at the underlying data for the HSBC GS Balanced you will see it is over 60% equities so more like VLS60 than VLS40. Don't go by the name dig much deeper.

eskbanker

ANGLICANPAT said:

i web does hold  the hsbc  funds , Im just about to  put OH's  isa money in for him  . However   the one we'd picked  the  global balance,C,  Id thought was  equal in risk , more to Vanguard  40  , but reading this thread its  apparently  closer to Vanguard 60 ?.  Somehow Ive got the idea that  anything with 'balanced' in the title would be  in the middle of   low to high risk ? 

That's the danger of just looking at headlines rather than details, although to be fair, Balanced is the middle of HSBC's Global Strategy range, but since they approximate to VLS 20/40/60/80/100 in terms of equity content, the middle isn't literally 50/50 equities/bonds if that's what you were expecting.  However, there are other ways of quantifying risk, and one frequently-used one, the FE risk score (of volatility relative to the FTSE100), has HSBC GS Balanced at 45 versus VLS40 at 37 and VLS60 at 51, so by that measure it would be roughly equivalent to a notional VLS50, although they're structured and managed differently....

https://www2.trustnet.com/learn/learnaboutinvesting/FE-Risk-Scores.html

ANGLICANPAT

Thank you eskbanker, I won't make that mistake again . My notebook of points to remember  with investing  ,from questions on here ,is getting pretty fat!   Good job we have MSE  forum, Id be scuppered otherwise.  . 

apollo9

Cheers all. I will take a better look at the risk profiles and see which to pick. Makes no sense to pick low cost trackers and stay on the Fidelity platform.