What other fund shall I invest in?

ShinyStarlight1
ShinyStarlight1 Posts: 29
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edited 10 February at 12:12PM in Savings & investments
Hello All

I would like to put £10k in an investment to complement my existing Vanguard Target Retirement 2030 fund. I am new to investing but realise I need to invest in a diversified way.

I am comfortable taking a risk up to 5/7 and intend to invest for approximately 6 years. There is no specific thing I am investing for.

Are there any accumulating investments you would suggest I take a closer look at?





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  • eskbanker
    eskbanker Posts: 29,811
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    That fund is already well diversified, so there's no harm in adding something complementary if there's something specific that you're looking to add that isn't already covered, but there's no need to add something else just for the sake of it.
  • Linton
    Linton Posts: 17,022
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    When you say investing for approximately 6 years do you mean cash it all in (or buy an annuity) at that time? If so 6 years is too short a time period for serious investing.  If you dont mean sell the investment in 6 years, what do you mean?

    Anything niche you  may want to cover would be likely to incur a higher risk.


  • ColdIron
    ColdIron Posts: 8,652
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    edited 10 February at 12:59PM
    I need to invest in a diversified way.
    It's pretty diversified already. Getting on for 10,000 companies across the globe and well in excess of 25,000 bond holdings. Holding a lifestyling fund for only 6 years seems a bit pointless but if you added anything to it, it would only further negate whatever minimal benefit it had
  • ShinyStarlight1
    ShinyStarlight1 Posts: 29
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    edited 10 February at 1:02PM
    Linton said:
    When you say investing for approximately 6 years do you mean cash it all in (or buy an annuity) at that time? If so 6 years is too short a time period for serious investing.  If you dont mean sell the investment in 6 years, what do you mean?

    Anything niche you  may want to cover would be likely to incur a higher risk.


    6 years is the shortest period of time I will leave the money in that fund - it may be for a few years longer (depending on various things I will know then but cannot know now).

    I won’t be buying an annuity.


  • ColdIron said:
    …Holding a lifestyling fund for only 6 years seems a bit pointless but if you added anything to it, it would only further negate whatever minimal benefit it had
    Thanks for your comment about it already being highly diversified.

    I don’t understand the part of your answer I’ve quoted above.
  • ColdIron
    ColdIron Posts: 8,652
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    They are designed to hold an increasing proportion of bonds over time, but over only 6 years the allocations wouldn't change that much. If you added another fund that didn't do that (and most don't) the proportions would change even less
    In addition if you added something not already covered by the fund you have, e.g. Vanguard's Global Small Cap with over 50% US, you would skew the equity and US allocation away from what Vanguard regard as optimal for the chosen retirement date
    These funds are designed to be held as a single fund
  • ColdIron said:
    They are designed to hold an increasing proportion of bonds over time, but over only 6 years the allocations wouldn't change that much. If you added another fund that didn't do that (and most don't) the proportions would change even less
    In addition if you added something not already covered by the fund you have, e.g. Vanguard's Global Small Cap with over 50% US, you would skew the equity and US allocation away from what Vanguard regard as optimal for the chosen retirement date
    These funds are designed to be held as a single fund
    Thank you ColdIron for taking the time to explain that to me.
  • JohnWinder
    JohnWinder Posts: 1,709
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    Create an imaginary portfolio of stocks and/or bonds, then look over the graph of its value falls during past decades and decide whether the worst six year period is one you could live with. If you couldn't, choose a less risky portfolio - less stocks more bonds. When you're happy, choose a similar fund from Vanguard or someone else with low fees, for your six years. Too easy.


  • Bostonerimus1
    Bostonerimus1 Posts: 444
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    Hello All

    I would like to put £10k in an investment to complement my existing Vanguard Target Retirement 2030 fund. I am new to investing but realise I need to invest in a diversified way.

    I am comfortable taking a risk up to 5/7 and intend to invest for approximately 6 years. There is no specific thing I am investing for.

    Are there any accumulating investments you would suggest I take a closer look at?





    Will you reach retirement age close to 2030? As others have said your existing fund is diversified already as it is made up of quite a few other Vanguard stock and bond funds and you don't need anything more to diversify, but to give more than a cursory answer we really need to know what you plan for the money...is it long term for retirement income generation? and if so what other investments, pensions and savings do you have?
  • Hello All

    I would like to put £10k in an investment to complement my existing Vanguard Target Retirement 2030 fund. I am new to investing but realise I need to invest in a diversified way.

    I am comfortable taking a risk up to 5/7 and intend to invest for approximately 6 years. There is no specific thing I am investing for.

    Are there any accumulating investments you would suggest I take a closer look at?





    Will you reach retirement age close to 2030? As others have said your existing fund is diversified already as it is made up of quite a few other Vanguard stock and bond funds and you don't need anything more to diversify, but to give more than a cursory answer we really need to know what you plan for the money...is it long term for retirement income generation? and if so what other investments, pensions and savings do you have?
    Yes, I will receive my State Pension around then.

    My reason for wanting to invest this money is because I may have expensive care needs when I am older so would like this money to improve its value as much as I can.
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