Building investment portfolios

poli123

Hi there 
i am a newbie to investing and looking to invest 100k , 10 year plus horizon, Still 20 years off from retirement and have some cash kept aside for emergencies so want to fully invest this amount 
my questions are
1. how many funds should you hold within an investment portfolio based on the above amount ?

2. Looked at vanguard life strategy fund (60 eq, 40% bond) but what other additional  funds would you recommend holding?

Thanks 

Alexland

poli123 said:

1. how many funds should you hold within an investment portfolio based on the above amount ?

As few as possible to keep costs low and achieve your desired asset allocation. I would do one multi asset fund or maybe a 2 fund portfolio using a well diversified equities and bond fund.

poli123 said:

2. Looked at vanguard life strategy fund (60 eq, 40% bond) but what other additional  funds would you recommend holding?

Thanks 

60% equities might be good for 10 years but is a bit low for a 20 year timeline (which is it?) and might only just keep pace with inflation after fees. For real long term growth an 80% equities allocation may be more appropriate. As you get closer to retirement you might move to reduce to 60% to reduce return sequence risks while drawing income.
Also importantly are you being efficient in your use of tax wrappers - Pensions, S&S Lifetime ISAs, S&S ISAs, etc?

dunstonh

1. how many funds should you hold within an investment portfolio based on the above amount ?

It depends on your investment strategy.   There are multiple strategies.  So, no single answer can be given.  What I would do and what you would do would likely be different.   Mainly down to experience and knowledge.  I would hold around 10 single sector funds (sector as in country/region) with weightings to match my risk profile, timescale etc.

2. Looked at vanguard life strategy fund (60 eq, 40% bond) but what other additional  funds would you recommend holding?

If I was using that fund, which I wouldn't as it hasn't been the best option for some years now (although best is subjective and opinion), then I wouldn't use any other funds as the purpose of that fund is to be an all-in-one solution.

fred246

If I was using that fund, which I wouldn't as it hasn't been the best option for some years now (although best is subjective and opinion), then I wouldn't use any other funds as the purpose of that fund is to be an all-in-one solution.

So which fund would you suggest they use instead?

Gsaver1

fred246 said:

If I was using that fund, which I wouldn't as it hasn't been the best option for some years now (although best is subjective and opinion), then I wouldn't use any other funds as the purpose of that fund is to be an all-in-one solution.

So which fund would you suggest they use instead?

A fund I'm thinking about investing in for my European percentage is Blackrock Europe Dynamic. Hopefully a good choice.

masonic

Gsaver1 said:

fred246 said:

If I was using that fund, which I wouldn't as it hasn't been the best option for some years now (although best is subjective and opinion), then I wouldn't use any other funds as the purpose of that fund is to be an all-in-one solution.

So which fund would you suggest they use instead?

A fund I'm thinking about investing in for my European percentage is Blackrock Europe Dynamic. Hopefully a good choice.

I used to hold that fund. Wouldn't consider it a core holding - it's pretty concentrated.