Multi Asset 60/40

Neversurrender

So regarding my opening post

60/40 still reasonable fund?

dunstonh

Neversurrender said:

So regarding my opening post

60/40 still reasonable fund?

Yes.  Indeed, possibly more now than it was 12 months ago.

MK62

If it fits within your general risk capacity and is aligned, generally speaking, with your goals, then yes........but that's not saying it will generate the best returns, or will withstand a downturn better, when compared to alternatives you could consider......the answer to that would require the proverbial crystal ball....

Neversurrender

Thanks all, you've been a great help.

Much appreciate your time and effort

P933alilli

 VLS60 is showing an asset allocation of 59% equities 41% bonds. The distribution yield at 30th september is 1.49%. Is this the yield of return each year, interest, that will go into accumulation of the fund? 

adindas

Neversurrender said:

Do people still use the 60/40 Multi Asset, such as VLS and Royal London etc....

60% Equity 40% Bonds

I keep reading articles which would suggest they are no longer suitable for decent returns, I suppose driven by the way in which bonds are performing.

My own situation is I wouldn't need to touch any investments for around 10 years, and have cash reserves, my fear I suppose is, that in 10 years time anything in my 60/40 would have returned very little if anything, after reading articles on the future of 60/40's and all the talk of bonds recently.

My aim is wealth creation rather than pure wealth preservation. So I do not hold any bonds and it is right from the beginning especially after learning what most of billionaires proven investors have been doing rather than following the crowd. My investment work similar to Bonds but saver are easy access savings accounts, regular saving accounts and to some extents short dated (maximum one year) fixed rate saving account. All of that is waiting for allocation to equity using enhanced DCA strategy.

It is the general truth in the long run equity always beats bonds.

Another unproven strategy that has been discussed is to limit 20% in equity and 80% in cash if you have that many or sell your position to prepare 80% in cash. It is mainly intended to strike when the stock market crash at 80% happen which based on someone crystal-ball will happen by the end of this year.

https://forums.moneysavingexpert.com/discussion/comment/79547506#Comment_79547506

https://forums.moneysavingexpert.com/discussion/comment/79552043#Comment_79552043

Audaxer

Maybe as interest rates are now increasing, cash savings should now represent a bigger percentage of a portfolio. I wonder if 60% equity, 20% bonds and 20% cash, might now be a better option?

Swipe

Audaxer said:

Maybe as interest rates are now increasing, cash savings should now represent a bigger percentage of a portfolio. I wonder if 60% equity, 20% bonds and 20% cash, might now be a better option?

I agree. I'm now 70% equities and 30% cash

InvesterJones

Collyflower1 said:

 VLS60 is showing an asset allocation of 59% equities 41% bonds. The distribution yield at 30th september is 1.49%. Is this the yield of return each year, interest, that will go into accumulation of the fund? 

Depending on how it's calculated, it'll be something like the yield (from both bonds and dividends) that was generated over the last year, divided by value of the fund. And yes it stays in the fund for accumulation funds.

Kendall80

My 60:40 ISA has taken a very significant hit over the last couple of months. Losing 'roughly' 10% in just the past 30 days. Ordinarily, I would now invest spare cash into it but i'm fresh out of that right now.

Picking start/end dates I know but i'm only 7% up in 7 years to date - a real terms decrease. Initial lump sum topped up with monthly drip feed. I'm not starving though and not invested outside of my risk tolerance but it is still disappointing. Should've gone 100% in hindsight (or kept it in savings accs.).

Maybe the West and associated mass media will start 'allowing' discussion of peace and economies can get back to some semblance of normality soon.