Do I need several SIPP investments?

Macka09

Hi folks. 

Some of you may have seen my other post from recent weeks regarding SIPPs which I’ve recently set up. 

I only have one index fund in there at the moment which an all world fund. 

I’m just wondering whether it’s worth going in to the S&P 500 etf also or maybe more into a European fund. 

Any hints and tips would be great. 

Thanks

aroominyork

Think through why you would want to divert from a global cap weighted fund. Is it because you think a certain region is going to outperform in the coming years? Is it because the fund has gaps you want to fill, eg small caps? Is it because you feel the all world fund exposes you too much to one region? You probably have about 65% in North America; adding an S&P fund would be a bold call in support of the USA market; it has outperformed during the last decade - will it continue to?

ColdIron

If your all world is your only investment then no. It will already cover the USA and Europe so you'll just be duplicating what you already have and messing with the allocations

If you were to add anything you might look at something you don't have. Are you OK with 100% equities?

Is it the only thing in your SIPP? What do you hope to achieve?

Linton

By adding a US or Europe fund you are simply changing the overall allocations to the major developed world countries in your portfolio. Why don’t you like the allocations  provided by the global index fund? What do you want to achieve? Note that anything of any significance in either or your proposed new funds is already included in the global tracker.

DietIrnBru

FOMO is at work here. Regardless of what flashy social media Youtubers say - the way to a decent amount of wealth isn't Buy to Let, buying a load of random shares on Free Trade, selecting multiple funds and buying Crypto because my mate bought and made thousands - its the unsexy way, keeping it simple - regular saving, regular investing in one global fund (Vanguard FTSE global all cap covers large, medium  and small companies on a global scale), saving in your pension, developing your career as much as you can, looking after your own health and stopping to smell the roses once in a while.

Multiple funds is like buying excess food for your cupboards - a lot of waste to be had.

dunstonh

I only have one index fund in there at the moment which an all world fund. 
I’m just wondering whether it’s worth going in to the S&P 500 etf also or maybe more into a European fund. 

Are you in a position of knowledge to become a fund manager?   That is effectively what you would be attempting by changing the weightings.

Macka09

dunstonh said:

I only have one index fund in there at the moment which an all world fund. 
I’m just wondering whether it’s worth going in to the S&P 500 etf also or maybe more into a European fund. 

Are you in a position of knowledge to become a fund manager?   That is effectively what you would be attempting by changing the weightings.

No definitely not. 

Macka09

Linton said:

By adding a US or Europe fund you are simply changing the overall allocations to the major developed world countries in your portfolio. Why don’t you like the allocations  provided by the global index fund? What do you want to achieve? Note that anything of any significance in either or your proposed new funds is already included in the global tracker.

I’m not saying I don’t like it. I was just wondering whether it’s worth having something else in there. 

This fund is going to be in for at least 20 years. 

Macka09

ColdIron said:

If your all world is your only investment then no. It will already cover the USA and Europe so you'll just be duplicating what you already have and messing with the allocations

If you were to add anything you might look at something you don't have. Are you OK with 100% equities?

Is it the only thing in your SIPP? What do you hope to achieve?

It is the only thing in my SIPP. 

ColdIron

Macka09 said:

Linton said:

By adding a US or Europe fund you are simply changing the overall allocations to the major developed world countries in your portfolio. Why don’t you like the allocations  provided by the global index fund? What do you want to achieve? Note that anything of any significance in either or your proposed new funds is already included in the global tracker.

I’m not saying I don’t like it. I was just wondering whether it’s worth having something else in there.

But by adding more US and Europe you won't have something else in it

It would be like buying a supermarket beef sunday roast ready meal and buying more beef and horseradish

Macka09

ColdIron said:

Macka09 said:

Linton said:

By adding a US or Europe fund you are simply changing the overall allocations to the major developed world countries in your portfolio. Why don’t you like the allocations  provided by the global index fund? What do you want to achieve? Note that anything of any significance in either or your proposed new funds is already included in the global tracker.

I’m not saying I don’t like it. I was just wondering whether it’s worth having something else in there.

But by adding more US and Europe you won't have something else in it

It would be like buying a supermarket beef sunday roast ready meal and buying more beef and horseradish

I understand. 

Thanks