My potential Portfolio. Bonkers or thumbs up?

aroominyork

mears1 said:

Thank you @aroomin york
 Can you suggest a good low cost high performance Asia Pacific fund with low China exposure please.

No, not a low cost one. And as others have said, you need to understated more and do your own research or otherwise stick to simple index funds. In fact, the result of understanding more and doing your own research might well lead you to the conclusion that you should stick to simple index funds.

Audaxer

mears1 said:

Audaxer said:

mears1 said:

dunstonh said:

Thrugelmir said:

Don’t construct a portfolio on past performance. Nor dismiss the Uk out of hand. That’s a sure way of ending up with a riskier unbalanced portfolio.

And the forum is seeing plenty of posts from people who have done just that and now worrying about their losses.

Then how does one choose? There are 1000s of products out there. The technical information is beyond my appreciation. And if the experts can't always get it right, how do you guys choose?

You are less likely to pick the wrong funds if you stick with index funds, or low cost multi asset funds that can be a well diversified one fund portfolio. It looks like the the funds you have chosen are all 100% equity - are you happy with such a high risk level?

May I ask what fund you use that is not 100% equity? Is it something like VG lifestyle 80:20? That is the only one I know.

There are hundreds of funds that are not 100% equity, some containing just bonds, some multi asset funds containing equity and bonds in different percentages, and some funds containing property.

mears1

Audaxer said:

mears1 said:

dunstonh said:

Thrugelmir said:

Don’t construct a portfolio on past performance. Nor dismiss the Uk out of hand. That’s a sure way of ending up with a riskier unbalanced portfolio.

And the forum is seeing plenty of posts from people who have done just that and now worrying about their losses.

Then how does one choose? There are 1000s of products out there. The technical information is beyond my appreciation. And if the experts can't always get it right, how do you guys choose?

You are less likely to pick the wrong funds if you stick with index funds, or low cost multi asset funds that can be a well diversified one fund portfolio. It looks like the the funds you have chosen are all 100% equity - are you happy with such a high risk level?

Thank you for drawing my attention to this. Reason I haven't given much attention as I got the impression it drags down performance as in the VG's Lifestyle combination. Otherwise, the VG's lifestyle combination would be an easy choice for whole portfolio. Job done!

bostonerimus

mears1 said:

Audaxer said:

mears1 said:

dunstonh said:

Thrugelmir said:

Don’t construct a portfolio on past performance. Nor dismiss the Uk out of hand. That’s a sure way of ending up with a riskier unbalanced portfolio.

And the forum is seeing plenty of posts from people who have done just that and now worrying about their losses.

Then how does one choose? There are 1000s of products out there. The technical information is beyond my appreciation. And if the experts can't always get it right, how do you guys choose?

You are less likely to pick the wrong funds if you stick with index funds, or low cost multi asset funds that can be a well diversified one fund portfolio. It looks like the the funds you have chosen are all 100% equity - are you happy with such a high risk level?

Thank you for drawing my attention to this. Reason I haven't given much attention as I got the impression it drags down performance as in the VG's Lifestyle combination. Otherwise, the VG's lifestyle combination would be an easy choice for whole portfolio. Job done!

K.I.S.S. Potential gain is not the only factor, you must also include volatility and risk. I would stop worrying about finding the "right" Small Cap fund and think about what you will do when you portfolio increases or decreases in value ie a rebalancing and crash strategy so you don't panic. One approach would be something like VS80 and doing nothing other than keep buying through all market cycles because you'd have a diverse portfolio that would rebalance automatically.

k6chris

Choose a portfolio that allows you to sleep at night.  VLS80 or similar and you know it will be there or therabouts for the majority of people.  The Ford Focus of investments.  IMHO Investing is more about knowing your own personal risk tolerance than it is about picking funds and maximising returns.