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Is there any disadvantage/risk with investing all personal saving via one single platform?
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Roselondon_2
Posts: 126 Forumite


I mean...in principle, personal investment is protected by FSCS for up to £50,000. On the other hand, I understand diversification is important and one shall not put all eggs in one single basket. So does this mean I shouldn't entrust the entire household's saving with one single platform, even though this platform offers different products which have different risk factors and managing style? What's the risk/disadvantage in reality if I just keep it simple by putting all into a reputable platform like Vanguard, as long as I keep the investment under £50k per person?
Thanks.
Thanks.
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Comments
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It depends on the platform. If we are talking about major UK regulated platforms like H&L, Vanguard etc then the answer is no.“So we beat on, boats against the current, borne back ceaselessly into the past.”3
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Roselondon_2 said:I mean...in principle, personal investment is protected by FSCS for up to £50,000.
[...]
as long as I keep the investment under £50k per person?
https://www.fscs.org.uk/what-we-cover/investments/
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eskbanker said:Roselondon_2 said:I mean...in principle, personal investment is protected by FSCS for up to £50,000.
[...]
as long as I keep the investment under £50k per person?
https://www.fscs.org.uk/what-we-cover/investments/0 -
The risk would be that the platform goes belly up and you can't access your investments for months. See the thread on SVS securities where this happened. The larger the platform, the less risk, in general.1
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HansOndabush said:The risk would be that the platform goes belly up and you can't access your investments for months. See the thread on SVS securities where this happened. The larger the platform, the less risk, in general.
And not a single investor with them has lost any money. Even those with 7 digits as the £85k FSCS limit is being used per person to pay the administrators.
As usual with these things, it is not the platform itself where your risk of delay is. It is the assets used in your investments that cause problems. If the assets had been mainstream regulated funds from other fund houses then the administrator could have just offloaded the platform to another platform with the assets in situ or allowed the funds to be re-registered to another platform.
The SVS issue is probably closer to Woodford than it is to a platform failure.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2 -
Roselondon_2 said:I mean...in principle, personal investment is protected by FSCS for up to £50,000. On the other hand, I understand diversification is important and one shall not put all eggs in one single basket. So does this mean I shouldn't entrust the entire household's saving with one single platform, even though this platform offers different products which have different risk factors and managing style? What's the risk/disadvantage in reality if I just keep it simple by putting all into a reputable platform like Vanguard, as long as I keep the investment under £50k per person?
Thanks.3
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