Portfolio

Pat38493

ader42 said:

If it was me I would want to avoid all managed funds at all costs if possible.
3/4 of all funds do not even match market returns.

I would suggest putting it all into low-cost trackers if possible would be far better.

If you want a good sugegstion of something to read try “Money - Master the game” by Tony Robbins.

From what I’ve seen it’s not necessarily that the managed funds don’t perform better than the trackers per se, but more that they don’t perform sufficiently better to outweigh the higher charges that they levy, but I guess it comes to the same thing in the end.

[Deleted User]

dunstonh said:

I do not believe you are unable to understand basic points. 

Same back at you.   

One minute you are saying "Holding less than 5% in any fund is pointless. Just adds completely at no benefit."
Next minute you are saying it's ok if a fund house does it.

There is zero need for individual investors to try and duplicate fund manager’s role. 

Using a multi-asset fund adds a layer of charges.  In the case of Vanguard, around 0.1% p.a.     It is very sensible for someone that doesn't know what they are doing to use the multi-asset fund.   However, there are plenty of people that can build a portfolio of funds matching their preferred asset model and avoid that extra charge.

VLS funds are being managed by professionals.  They designed allocations based on sound research

But it still leads to half the top 10 funds holding less than 5% each which you said is pointless.

The OPs less than 5% holdings are pointless.  They achieve nothing but that doesn't mean a portfolio of single sector funds with structure and process, whether fund house or investor researched, with some holding less than 5% is pointless.

Right. I wish all the luck to anyone wishing to hire another layer to do “fund of funds” job instead of Vanguard, Fidelity, HSBC, Blackrock et al. And to do it for around 0.1% p.a.  And as well as or better than these outfits. A few IFA designed portfolios that people have been posting on this forum seemed remarkably similar to what the OP has. 

“it is very sensible for someone that doesn't know what they are doing to use the multi-asset fund.   However, there are plenty of people that can build a portfolio of funds matching their preferred asset model and avoid that extra charge.”

I do that.  But I question if it is sensible.  Yes, I cut a few basis points from the costs.  And add a little tax efficiency.  Incorporate a couple of factor tilts which took my fancy.   I still do a little active management, albeit only for the FI portion.  No, there is no need for me to hold equity funds with under 5% weighting.  That would be wasting my time.  FI is different, I agree. 

 Its all good fun and works alright but there will come a point when I will switch to a “fund of funds”.  A one-fund portfolio is much simpler to deal with for the family if something were to happen to you. Doubt they will find their way around my tools.  A one-fund portfolio prevents mistakes and temptations.  As we get older, simplicity and error proofing become even more valuable.  

Jaguar_Skills

Thanks for all the replies guys.   It is very interesting to read the back and forth, albeit I don't understand all (if much) of it! 

I think from what I have gleaned it makes sense to just leave the portfolio as it is for now and to dump my bonus all into VLS or Blackrock?  Is that a half decent idea? 

Also, should I pull the money out from the others, despite the fact that they have lost money, or should I just wait for them to recover somewhat?

Sorry again.  I am trying! 

MX5huggy

The 3 tiny holdings are so small it makes no difference if you have them or not. I would hold now if I had them (wouldn’t of got them in the first place). The HSBC is a bit more but it’s cheap and there’s probably fees to sell it? So just keep it. 

Linton

Jaguar_Skills said:

Thanks for all the replies guys.   It is very interesting to read the back and forth, albeit I don't understand all (if much) of it! 

I think from what I have gleaned it makes sense to just leave the portfolio as it is for now and to dump my bonus all into VLS or Blackrock?  Is that a half decent idea? 

Also, should I pull the money out from the others, despite the fact that they have lost money, or should I just wait for them to recover somewhat?

Sorry again.  I am trying! 

It would make sense for you to put your bonus into your major holdings.

Whether your other funds are making or losing money is irrelevent.  If they are losing money now maybe they will make money in the future when your other funds perform poorly.  

In my view your small holdings are pointless not just because they are very small, but mainly because they add nothing to the portfolio.  Anything in those small holdings is probably covered by the major ones anyway.

Jaguar_Skills

Linton said:

Jaguar_Skills said:

Thanks for all the replies guys.   It is very interesting to read the back and forth, albeit I don't understand all (if much) of it! 

I think from what I have gleaned it makes sense to just leave the portfolio as it is for now and to dump my bonus all into VLS or Blackrock?  Is that a half decent idea? 

Also, should I pull the money out from the others, despite the fact that they have lost money, or should I just wait for them to recover somewhat?

Sorry again.  I am trying! 

It would make sense for you to put your bonus into your major holdings.

Whether your other funds are making or losing money is irrelevent.  If they are losing money now maybe they will make money in the future when your other funds perform poorly.  

In my view your small holdings are pointless not just because they are very small, but mainly because they add nothing to the portfolio.  Anything in those small holdings is probably covered by the major ones anyway.

Thanks so all in VLS? Someone was saying above it is pointless to have in Blackrock and Vanguard? 

Linton

Jaguar_Skills said:

Linton said:

Jaguar_Skills said:

Thanks for all the replies guys.   It is very interesting to read the back and forth, albeit I don't understand all (if much) of it! 

I think from what I have gleaned it makes sense to just leave the portfolio as it is for now and to dump my bonus all into VLS or Blackrock?  Is that a half decent idea? 

Also, should I pull the money out from the others, despite the fact that they have lost money, or should I just wait for them to recover somewhat?

Sorry again.  I am trying! 

It would make sense for you to put your bonus into your major holdings.

Whether your other funds are making or losing money is irrelevent.  If they are losing money now maybe they will make money in the future when your other funds perform poorly.  

In my view your small holdings are pointless not just because they are very small, but mainly because they add nothing to the portfolio.  Anything in those small holdings is probably covered by the major ones anyway.

Thanks so all in VLS? Someone was saying above it is pointless to have in Blackrock and Vanguard? 

It is unnecessary to use both Blackrock and VLS.  But it's not a major investment error, doesnt add significantly to costs, and some people feel happier splitting their investments among providers.

Jaguar_Skills

Linton said:

Jaguar_Skills said:

Linton said:

Jaguar_Skills said:

Thanks for all the replies guys.   It is very interesting to read the back and forth, albeit I don't understand all (if much) of it! 

I think from what I have gleaned it makes sense to just leave the portfolio as it is for now and to dump my bonus all into VLS or Blackrock?  Is that a half decent idea? 

Also, should I pull the money out from the others, despite the fact that they have lost money, or should I just wait for them to recover somewhat?

Sorry again.  I am trying! 

It would make sense for you to put your bonus into your major holdings.

Whether your other funds are making or losing money is irrelevent.  If they are losing money now maybe they will make money in the future when your other funds perform poorly.  

In my view your small holdings are pointless not just because they are very small, but mainly because they add nothing to the portfolio.  Anything in those small holdings is probably covered by the major ones anyway.

Thanks so all in VLS? Someone was saying above it is pointless to have in Blackrock and Vanguard? 

It is unnecessary to use both Blackrock and VLS.  But it's not a major investment error, doesnt add significantly to costs, and some people feel happier splitting their investments among providers.

Really helpful. Thanks so much. 

[Deleted User]

Personally I would move everything into either Blackrock or VLS fund. That would be the best, simplest, neatest solution.  But I agree that having both isn’t a big problem. 

I would also read a book or two to gain understanding of the basics.  Its not a lot of time to invest and its always good to have a thought through strategy. Helps you to stick with it. 

cloud_dog

Deleted_User said:

Personally I would move everything into either Blackrock or VLS fund. That would be the best, simplest, neatest solution.  But I agree that having both isn’t a big problem. 

I would also read a book or two to gain understanding of the basics.  Its not a lot of time to invest and its always good to have a thought through strategy. Helps you to stick with it. 

@Jaguar_Skills, if you like to consume information via online media rather than reading books, try googling 'Lars Kroijer', and look at his youtube channel.  His 'Investing Demystified (book also) series may benefit you.