2 Sipp Funds Unsure about

Neversurrender

Hello everyone.

In January this year I created a Sipp portfolio containing several SIPP funds.

There are 2 in particular that I now feel unsure about.

IFSL Marlborough Special Situation P Acc

Which has dropped 29.83% since January this year

JPM Emerging Markets C Nett Acc
Which has dropped 15.67%

Apart from the fact they have dropped more than any other Sipp in my portfolio, I am also wondering if these types of investment are still a good idea.

I plan to leave any investments alone for around 10 years

I would appreciate any advice please.

Linton

If you want to invest in smaller UK companies and Emerging Markets these are perfectly reasonable ways of doing it.  They can be volatile but they certainly are not going to fade away to nothing.  Both are at a similar price to pre-covid.

Provided they are a relatively small part of a well diversified portfolio I see no reason to get rid of them.

dunstonh

Apart from the fact they have dropped more than any other Sipp in my portfolio, I am also wondering if these types of investment are still a good idea.

They would have fallen more.  Entirely predictable.

I plan to leave any investments alone for around 10 years

So knowing that your timescale means you are likely to see around 2 heavy negative periods and selecting two funds in your portfolio that would have heavier losses in those negative periods, why are you now looking to change things?

Both funds would be expected to have small weightings in your portfolio.  For example, the Marlborough fund makes a good satellite fund but not a core fund.  And Emerging markets would be no more than around 5% for most people unless they are at the higher end of the risk scale.

How do they fit in with your wider portfolio?  

Neversurrender

Thankyou very much Linton,

Yes they are both quite small and part of a diverse portfolio

When I say small the

IFSl Marlborough is currently worth £3226 down by 29.83% from initial investment

JPM  Emerging Markets is currently worth £2611 down by 15.67% from initial investment.

The IFSL has been a dog since I invested in January.

Albermarle

It might seem a bit pedantic, but in this area it is best to use the right phraseology, to avoid any confusion.

In January this year I created a Sipp portfolio containing several SIPP funds.
There is no such thing as a 'Sipp fund' . You have investment funds that could be held in many different ways, including within a SIPP.

Apart from the fact they have dropped more than any other Sipp investments in my SIPP portfolio, 

Neversurrender

Albermarle said:

It might seem a bit pedantic, but in this area it is best to use the right phraseology, to avoid any confusion.

In January this year I created a Sipp portfolio containing several SIPP funds.
There is no such thing as a 'Sipp fund' . You have investment funds that could be held in many different ways, including within a SIPP.

Apart from the fact they have dropped more than any other Sipp investments in my SIPP portfolio, 

Yes I agree, Pedantic

Neversurrender

dunstonh

I plan to leave any investments alone for around 10 years

So knowing that your timescale means you are likely to see around 2 heavy negative periods and selecting two funds in your portfolio that would have heavier losses in those negative periods, why are you now looking to change

Because these IFSL investment funds is losing more than my others and never goes up in the usual roller coaster ride, just down, and the emerging markets gives me new concern as they are emerging markets in difficult times

Neversurrender

dunstonh said:

Both funds would be expected to have small weightings in your portfolio.  For example, the Marlborough fund makes a good satellite fund but not a core fund.  And Emerging markets would be no more than around 5% for most people unless they are at the higher end of the risk scale.

How do they fit in with your wider portfolio?  

IFSL Marlborough represents 5% of my Portfolio

JPM Emerging around 3% of my Portfolio

Linton

Neversurrender said:

Thankyou very much Linton,

Yes they are both quite small and part of a diverse portfolio

When I say small the

IFSl Marlborough is currently worth £3226 down by 29.83% from initial investment

JPM  Emerging Markets is currently worth £2611 down by 15.67% from initial investment.

The IFSL has been a dog since I invested in January.

January was close to the top of the markets before the recent falls.  Your IFSI Marlborough fund has performed very similarly to the UK Small Companies average fund. It has performed significantly worse than the FTSE Small Cap Index since January but reached a higher peak not long before you bought it.  So extra volatility and unlucky timing rather than uniquely poor performance.

The difference between the fund average and the index may be due to % tech.

Neversurrender

So I guess leave them be?

[Deleted User]

I've observed is that some folk tend to invest in one big hit. Deposit cash, go buy something.
As they say timing is all. If you choose an arbitrary moment to enter the market, you risk timing it badly (or very well if you're lucky).
Deposit cash, then buy at regular intervals is a better strategy (cost averaging). This way you have reduced risk of timing it badly (hopefully smoothing the peaks and troughs over a given period). Example - deposit £6,000 then make 12 equal purchases of £500.

If funds were deposited in January, regular purchases would have brought average cost down significantly as the markets have dropped through the year. 
I appreciate this advice is not much use now (as you've already purchased) but will hopefully help with future investments.

Dollar-Cost Averaging (DCA) Explained With Examples and Considerations (investopedia.com)