Tracker Funds

dunstonh

So based on our previous conversations Albermarle, this ones not for me then, mind you, you look at the returns over the last 5 years and its tempting.

You wont get the returns of the last 5 years in the next 5 years.      

How would you feel about having less money that you started with after 10 years?  (as would have been the case over the 10 year period of 01/01/2000 to 31/12/2009)

Then compare the decade that followed that when it boomed.

5 years or even 10 years tells you nothing.

MissHap

The problem I have Dunston is at 70 I've more years behind me than ahead.
The money in the SIPP is sitting in cash so it needs a home somewhere.

dunstonh

MissHap said:

The problem I have Dunston is at 70 I've more years behind me than ahead.
The money in the SIPP is sitting in cash so it needs a home somewhere.

True, but 50% life expectancy is likely to be around 85 and 25% into your early 90s.   So, there is still potential time left for it to be viable to invest.   However, in a minority of scenarios, it may not be.  You don't know the future and can really only go by statistical likelihoods and make a judgement call.

100% equities for a 70 year old would be unusual.  However, no doubt you have cash savings as well.  So, if you averaged out what you have in cash savings and what you have in investments, you wont be 100% equities.
e.g. £100k overall with £50,000 in cash savings and £50,000 in 100% global equity equates to having 50% equities.

Janie2008

You could put £20,000 in a cash isa in April.  A 100% equity fund does not seem suitable due to your attitude to risk. 

MissHap

I see what you mean Dunston, I'm quite a positive person but risk averse, losses generally wouldn't sit well with me and after 50 years of working I'm forever looking at ways of not giving the taxman ANYTHING, the only solution I've come up with is dying   
The global strategy funds sit well with my mindset and I understand the risks when searching for the bigger returns so maybe I should stick with the Vanguard plan or something similar.
Janie, the cash ISA in the new tax year is a given.

jimjames

MissHap said:

I'm retired, financially independent, generally averse to risk, looking for growth on an investment balanced against the risk, the HSBC global strategy balanced fund was mentioned in previous posts here and seemed to suit my needs, a home for the future which I hopefully wont draw on, depending on future circumstances, but I cant see me needing to dip in, if at all.

Any reason you're not just adding it to the fund you already have deemed suitable?

MissHap

Thats the other alternative Jim, but what about all your eggs in one basket??

Hoenir

MissHap said:

Thats the other alternative Jim, but what about all your eggs in one basket??

It's a basket with many many different varieties of eggs in it.  Obtaining another basket containing very similar eggs. Isn't going to provide any degree of diversification or change the risk profile. Should certain market sectors take a hit. 

dunstonh

Thats the other alternative Jim, but what about all your eggs in one basket??

Your eggs are not in one basket with HSBC GS.

HSBC GS Balanced is made up of 1.2% small cap, 11.5% medium cap and 45.4% large cap on the equities side.
14.4% is value, 25.7% is blend and 18.0% growth.

Industry allocation on the equities is:

Basic Materials 2.15%

Communication Services 4.12%

Consumer Cyclical 5.93%

Consumer Defensive 3.83%

Energy 2.59%

Financial Services 7.80%

Healthcare 6.40%

Industrials 5.47%

Real Estate 6.76%

Technology 11.95%

Utilities 1.36%

It has tens of thousands of individual components making it up.
If you were to use an additional fund, like VLS or Fidelity, then the vast majority of the investments will be overlapped.  You are not diversifying but duplicating.

MissHap

I know what you mean Jim so I might do that with the HL SIPP.
Should I put some distance between the 2 though, I only invested with Fidelity last Monday.