Relationship With Your IFA

Thrugelmir

GSP said:

dunstonh said:

Thanks again dunstonh. Trying to learn differences between IFA’s, it’s good and comforting to hear that you appear to follow a similar number of investments as my IFA. God knows however how you choose tha figure from the wealth on offer.

If you think about it for a second, it actually makes sense why you have that number.

UK Equity, US Equity, European Equity, Japan Equity and so on....  If you add up the major sectors and include bonds, gilts, index linked gilts, high yidle bonds, global bonds, property etc then you hit those numbers.   

No doubt you will get someone slagging off IFAs for doing that and tell you that you should use something like HSBC GS, or more likely VLS.  However, they seem to forget that these are fund of funds that also invest in a similar number of funds.  So, they preach that their beloved Vanguard is quite right doing it, whilst criticising IFAs for doing it.

  

If the same investments are being used in various bundles, shouldn’t the overall returns, or losses be quite similar?

If different indices are used then there'll be divergence.