Everything in one global index tracker fund?

Joey2013

Hi forum members,
As the title of this thread intimates, I would like to get the forums collective wisdom on the idea of having all of my equity exposure in one global index tracker fund.
I have approx. £600k in the HSBC FTSE ALL WORLD 'C' with OCF of 0.13% on the Interactive Investor platform. Is having c600k in one fund ok, or should I split it between 2 or more global index tracker funds. 
Any and all comments welcome.
Thank you.

Thrugelmir

What's the rationale behind holding just one type of fund? What are you hoping to achieve by spreading your money across multiple global index tracker funds? 

Linton

Nothing in principle wrong with having all of your £600K in one global tracker fund.  Splitting it into 2 or 3 tracking the same index wont make any significant difference, but if it makes you happier it wont do any harm.

Rather than having separate funds there may be an argument for spreading the money over 2 separate platforms - for example if one platform has serious IT problems you would still have access to a substantial amount of money on the other platform.

Whether £600K in a global index tracker is appropriate for your circumstances may be another matter, perhaps not the topic for this thread.

Joey2013

The reason for the question was is it safe to have a large amount all in one fund or should I spread it across more than one global index fund.

Thrugelmir

HSBC are unlikely to go bust anytime soon. One of the more conservative global banking operations. With a strong balance sheet. Accessing your money shouldn't therefore be an issue. 

dunstonh

Joey2013 said:

The reason for the question was is it safe to have a large amount all in one fund or should I spread it across more than one global index fund.

Safe in terms of what?  100% equity is not considered safe.  You could lose up to 50% in a market fall.
Using multiple global trackers doesnt diversify you any further as the underlying assets will be the same with each.
If you mean FSCS protection then the platform doesnt own your investment and the fund house is not spending your money on other things (like a bank does with deposits).

Alexland

Without knowing what proportion of your overall wealth this £600k represents it's hard to comment but if this is a high proportion then yes I would be tempted to split it across a couple of unrelated platforms and fund managers even if the assets are invested in a similar way. The extra cost will be a very small percentage and it might help you sleep at night.

Joey2013

dunstonh said:

Joey2013 said:

The reason for the question was is it safe to have a large amount all in one fund or should I spread it across more than one global index fund.

Safe in terms of what?  100% equity is not considered safe.  You could lose up to 50% in a market fall.
Using multiple global trackers doesnt diversify you any further as the underlying assets will be the same with each.
If you mean FSCS protection then the platform doesnt own your investment and the fund house is not spending your money on other things (like a bank does with deposits).

I accept 100% equity has a high corresponding risk of a market fall. My concern was regarding HSBC and my funds disappearing into a puff of smoke.

Joey2013

Alexland said:

Without knowing what proportion of your overall wealth this £600k represents it's hard to comment but if this is a high proportion then yes I would be tempted to split it across a couple of unrelated platforms and fund managers even if the assets are invested in a similar way. The extra cost will be a very small percentage and it might help you sleep at night.

This 600k represents approx. 20% of my total assets, 100% of my equity assets.

Alexland

Joey2013 said:

Alexland said:

Without knowing what proportion of your overall wealth this £600k represents it's hard to comment but if this is a high proportion then yes I would be tempted to split it across a couple of unrelated platforms and fund managers even if the assets are invested in a similar way. The extra cost will be a very small percentage and it might help you sleep at night.

This 600k represents approx. 20% of my total assets, 100% of my equity assets.

In which case I wouldn't be too bothered about it but it's a matter for you to judge.

2021

Hi forum members,
As the title of this thread intimates, I would like to get the forums collective wisdom on the idea of having all of my equity exposure in one global index tracker fund.
I have approx. £600k in the HSBC FTSE ALL WORLD 'C' with OCF of 0.13% on the Interactive Investor platform. Is having c600k in one fund ok, or should I split it between 2 or more global index tracker funds. 
Any and all comments welcome.
Thank you.

Can I ask what your reasons for using a global index tracker fund are?
What are the benefits of investing in this way?
Thanks.