Aviva Workplace Pension Fund Choice

josecc

Hello

I am quite a novice when it comes to pensions and was wondering if anyone could help me. My workplace pension is through Aviva and I have the choice of 8 different funds to choose from below:

Fund name	Unit prices
Av Diversified Growth (BIGPS) (0.37% Annual Management Charge)	168.100
Av Emerging Market Equity (BIGPS) (0.39% Annual Management Charge)	200.700
Av Global Equity (BIGPS) (0.23% Annual Management Charge)	224.400
Av HSBC Islamic Global Equity Index FP (0.21% Annual Management Charge)	714.700
Av Money Market (BIGPS) (0.21% Annual Management Charge)	102.900
Av Stewardship UK Equity (0.27% Annual Management Charge)	358.600
Av Target Increasing Annuity (BIGPS) (0.21% Annual Management Charge)	161.100
Av Target Level Annuity (BIGPS) (0.29% Annual Management Charge)	141.300

I am 34 years old and plan to to carry on working until I am at least 65. What would be the best ones or best way to invest and how should I split my pot up Any help would be appreciated and feel free to ask any questions if I haven't gave enough info.

Thank you

MX5huggy

I would go 100% Global equity (wish my choice of 7 had this option). You have a long time to invest (even if you realise that working till 65 is a rubbish plan!). Revisit selection when you have 10 years to retirement. Check it’s truly global, not ex UK (ie includes the UK) and includes Emerging Markets (EM)

Be prepared for a few downs along the way 30% plus but just consider these as buying opportunities. 

Your links don’t work (they are behind your login) so it’s a bit hard to check exactly what each is. 

Don’t go for EM fund it’ll be about 40% China.
I think the Islamic fund is 70% plus USA. UK fund is too UK! Not looked at the others.

You’ve listed the unit price, this does not matter (I mean comparing unit prices). You buy bits of units. 

josecc

Thanks for the reply. It's not letting me click into each individual fund on my phone to check where each one is invested. Will need to go onto my computer to check that.

Currently I'm invested 70% Islamic,  20% EM and 10% global equity.

Is it wise to invest 100% into the one fund? Also is it not good to invest in funds that are mainly overseas? 

MX5huggy

One fund is the optimum strategy if you believe in passive investing and that fund is a Global All Cap Index fund. Otherwise no you need to diversify, but the Global All Cap is the ultimate diversity. 

Malthusian

Nothing wrong with 70% Islamic but it seems a strange "default choice" unless your employer is faith-based. Was that your choice originally?

As MX5 said there is nothing wrong with having all your money in a single global fund holding hundreds / thousands of companies. What matters is whether your eggs are in different baskets, not how many farmhands you employ to watch over the same number of baskets.

It's a very simple fund selection so you effectively have five options:

- the high risk, high growth option (risk here means the risk that the next crash gives you sleepless nights, or worse, panic and cash in during a crash, not of losing all your money): Global Equity

- the balanced option (less likely to result in sleepless nights): Diversified Growth

- the as per Global Equity but slightly more pleasing in the sight of Allah option: HSBC Islamic Global

- the bury your money in a hole in the ground option: Money Market

- the more complicated options: everything else

josecc

Thank for the replies. No Islamic wasnt the default choice. I did a bit of messing about a year ago.
I will change to 100% global equity. Thank you for your help