Everything in one global index tracker fund?

Thrugelmir

dunstonh said:

Ibrahim5 said:

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).

My SIPP is 100% equity. Of course I know it's a rollercoaster. I am happy with that. An IFA can't 'risk it' because he might lose a customer. The ultimate IFA disaster.

The FCA, just in the last week, has expressed concerns that too many, in particular younger people, who DIY are investing above their risk profile due to lack of knowledge.

Does appear that day trading is back in vogue in the UK. No doubt fueled by the fee free trading apps. 

Joey2013

MaxiRobriguez said:

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.

If you have £3m in assets you should be discussing allocations with an IFA, not an internet forum.

The rest of my assets are in BTL property so I don't know how an IFA would add anything. I am happy with my asset allocation, adding any left over income from BTL to equities to diversify away from btl. 

Alexland

Joey2013 said:
The rest of my assets are in BTL property so I don't know how an IFA would add anything. I am happy with my asset allocation, adding any left over income from BTL to equities to diversify away from btl. 

In which case if these are your only liquid assets you might want to split for accessibility as it takes time to regain access to assets when a provider fails
When we get to £3m of assets I will still be chatting here not paying an IFA.

jim8888

I have a similar amount in a Vanguard 80/20 and often wonder the same. Yes, you could lose 50% of the value in a crash, but are you likely to desperately need that whole sum in the day/week/month/year that it happens? I "lost" a lot on paper this time last year, as did many others, but it's recovered. I tend to think that if it didn't, then we'd have a lot more problems to preoccupy us than just money. 

Thrugelmir

jim8888 said:

I have a similar amount in a Vanguard 80/20 and often wonder the same. Yes, you could lose 50% of the value in a crash, but are you likely to desperately need that whole sum in the day/week/month/year that it happens? I "lost" a lot on paper this time last year, as did many others, but it's recovered. I tend to think that if it didn't, then we'd have a lot more problems to preoccupy us than just money. 

You are unlikely to see a 50% reduction in holding such a fund. That's what you paying Vanguard to do. Tweak the underlying fund allocations as they think fit. You haven't the concentration risk that those with a single global index tracker fund are exposed too. 

Eco_Miser

jim8888 said:

I have a similar amount in a Vanguard 80/20 and often wonder the same. Yes, you could lose 50% of the value in a crash, but are you likely to desperately need that whole sum in the day/week/month/year that it happens? I "lost" a lot on paper this time last year, as did many others, but it's recovered. I tend to think that if it didn't, then we'd have a lot more problems to preoccupy us than just money. 

Yes, we could have a lot more problems, like high unemployment (which is why you would be wanting to access that reduced investment), and minor civil unrest; without a complete breakdown of society, so banks would still work, and you could buy stuff from shops (if they had any stock left), but no-one buying 'luxuries', so manufacturers and retailers of 'luxuries' go out of business, increasing unemployment and halving your investments again.  Think US after October 1929. Or Germany at the same time.

There's actually a lot of intermediate steps between 'market crash' and 'Armageddon'.

Joey2013

Thank you all for your contributions. I have come to the decision to leave 100% of my equity exposure in the HSBC global index tracking fund. I have started looking at IWEB share dealing account, and plan to move my interactive investor trading account into it which currently has about 55k. I can add to this if I have any surplus funds and this will be helpful if one platform has any problems.