The only fund you will ever need?

2021

Just watched a utube video where someone working in money/finance says you only need one fund for investing.
Once you’ve worked out which fund is right for you: ‘That’s it. you don’t need to invest in anything else’.

What do others think?

eskbanker

I haven't watched it but it's undoubtedly true that there's a substantial market of global multi-asset funds that each deliver diversification in a box, tailored to the investor's risk tolerance, and these are low-cost low-maintenance products intended for 'fire and forget' use by those without the time, ability or inclination to create their own portfolios.  That doesn't mean they're right for everyone, but for the many they do suit, the claim made above has some justification....

george4064

Sounds perfectly reasonable, as long as the one fund you choose is suitable to your risk tolerance, investment horizon, financial goals and circumstances.

DrSyn

A Global Multi Asset Fund with a share/bond split you are comfortable with seem a reasonable suggestion.
Another option might be a Target Retirement Fund.
Out of interest which you tube video did you watch?

Linton

A click bait gross oversimplification with some truth.  For many people in the accumulation phase with limited investment experience makiing steady contributions into a relatively small pot for the long term one multi-asset find is a good solution.  At the other extreme, for people with a good knowledge iof investing dependent on a large amount of invested wealth to maintain their desired lifestyle, no,  one fund is not sufficient.

dunstonh

Just watched a utube video where someone working in money/finance says you only need one fund for investing.

That is the case if you intend to use a multi-asset fund.  It is not the case if you use single sector funds.

What do others think?

Click bait that drew you in but appears to have completely failed in its job of explaining what type of fund that "one" should be.

2021

dunstonh said:

Just watched a utube video where someone working in money/finance says you only need one fund for investing.

That is the case if you intend to use a multi-asset fund.  It is not the case if you use single sector funds.

What do others think?

Click bait that drew you in but appears to have completely failed in its job of explaining what type of fund that "one" should be.

dunstonh said:

Just watched a utube video where someone working in money/finance says you only need one fund for investing.

That is the case if you intend to use a multi-asset fund.  It is not the case if you use single sector funds.

What do others think?

Click bait that drew you in but appears to have completely failed in its job of explaining what type of fund that "one" should be.

Sorry. The utube video is by James Shack and is called  'Vanguard Lifestrategy Funds Explained | The only fund you will ever need (Investing for beginners)'.
I did, originally, put a direct link to it but it went to my PC screen (which didn't seem safe, so deleted it).

2021

DrSyn said:

A Global Multi Asset Fund with a share/bond split you are comfortable with seem a reasonable suggestion.
Another option might be a Target Retirement Fund.
Out of interest which you tube video did you watch?

 'Vanguard Lifestrategy Funds Explained | The only fund you will ever need (Investing for beginners)' by James Shack.

dunstonh

Sorry. The utube video is by James Shack and is called  'Vanguard Lifestrategy Funds Explained | The only fund you will ever need (Investing for beginners)'.

Vanguard lifestrategy funds are multi-asset funds.  Multi-asset funds have been around for generations.   The youtube video seems to be explaining on fund house's version.    Multi-asset funds are all-in-one fund.

We tend to use multi-asset funds with smaller investors and transactional clients.   We use single sector funds for larger investors (track record on those is better but its more work and requires more knowledge and understanding).

The Vanguard LS funds are actually fettered fund of funds.   It is effectively a portfolio of around a dozen own-brand single sector funds.  

DrSyn

The James Shack videos I have seen are not "click bait". Vanguard are the large well known company that started "index funds". The VLS fund mentioned is a ready made portfolio, suitable for those that want to keep investing simple or are starting out investing. Other companies sell Global Multi Asset Funds. For example there are the HSBC "Global Strategy Funds".

You may find the following of interest,   https://www.kroijer.com/

Alexland

We have a various investment objectives, prefer to spread our money across a few unrelated fund managers and want to keep our average fund manager costs below the 0.22% that VLS charge. Still for someone who has a single or complimentary objectives and is happy to pay then maybe they could just stick it all in a multi asset fund. Particularly for a small valuation where there is less benefit in doing anything else.