Should We Diversify?

Redlander

My wife and I have some investments 100% invested in Vanguard LifeStrategy 60. We just received some more funds - a repayment of a loan to a relative of £80,000 - and we're thinking of putting that into LifeStrategy 60 as well, as we're not very adventurous. 
Would other investors do the same, or would you try something to add diversity to your portfolio? Or is LifeStrategy intrinsically diverse enough already? 
How many of you might prefer a different fund just for fun - a concept that so far has been alien to us?
Perhaps I should add that I and my wife are 67 and 66 respectively

hewhohuntselves

Lifestrategy is already diverse, but you could consider a similar fund from another provider such as the LS60 equivalent from the HSBC Global Strategy range.  Blackrock Mymap is another option.  You could also look at where your fudns are held to make sure you are keeping fees low.  

You could also consider adding a fund with a higher equity proportion.  That's if you anticipate staying invested for a relatively longer period of time.

Obviously none of this is tailored advice.

El_Torro

VLS60 is not a bad fund. I don't like the fact that the equities are overweight in the UK, so I wouldn't have it as my only fund. There are various multi asset funds that are not overweight in the UK.

This money is in a General Investment Account? Can you and your wife move it into an ISA? If you haven't used your ISA allowance already you can move £40k now and £40k in the new tax year. 

It may even be a good idea to put some of this money into your pensions. Even if you're not working it's possible to move some of it there.

AlanP_2

You probably need to give some thought to, and tell us, what it is being invested "for" and the timescale to get better suggestions.

It is for "a new yacht in 2 years time" will generate different answers to "provide £5k of income a year for the next (hopefully) 30 years".

The proportion of your assets the £80k represents would also influence things. For example if it was 80% of your assets that's a different perspective than if it is 10% of your assets. Particularly relevant if your comment about a "fun fund" is followed up as they are typically a lot more of a roller coaster ride, or possibly even a big win / big loss scenario.

Having said that there is nothing wrong with the LS range or any of the similar ranges like HSBC Global Strategy and a 60/40 portfolio has stood the test of time up until now.  

dunstonh

VLS60 is fine.  There isn't a need to diversify as it is made up of 17 investment funds already.  its no longer the market leader but it is up there in what it does.

How many of you might prefer a different fund just for fun - a concept that so far has been alien to us?

Investing isn't for fun.  If you are doing it right, then it should be boring and monotonous.

AlanP_2

dunstonh said:

VLS60 is fine.  There isn't a need to diversify as it is made up of 17 investment funds already.  its no longer the market leader but it is up there in what it does.

How many of you might prefer a different fund just for fun - a concept that so far has been alien to us?

Investing isn't for fun.  If you are doing it right, then it should be boring and monotonous.

IFAs are people who thought being an accountant would be too exciting 

Seriously though its a good point and made more succinctly than mine above. 

Bostonerimus1

I wouldn't say that VLS60 isn't adventurous, 60% equities in your late 60s is a higher percentage than some would advocate, but I think it's ok if you have a good cash butter and SP to fall back on. If VLS60 is meeting your needs then there's no need to buy anything else as it is a very diverse fund of funds already. Keep things simple.

Redlander

Thanks to everybody who's responded so far. 

boingy

I think the only case for investing in a different fund would be if you wanted to spread your investments across different providers. Apart from that, VLS60 sounds like it's the one for you

JohnWinder

its no longer the market leader but it is up there in what it does.

What characteristics make funds ‘market leaders’? VLS60 has £12.8B under management. None of the HSBC GS series exceed £3.6B. What other funds should be compared?