SIPP

LHW99

Audaxer said:

martin7575 said:

@ColdIron interesting article, vanguard lifestrategy well reccommended there too

You can invest in a Vanguard LifeStrategy fund on most platforms, not just the Vanguard platform, so I'm fairly sure it will be available via ii.

Never looked for the lifestrategy funds, but I have used a couple of Vanguard trackers with II, so I'm sure they will offer most of the usual Vanguard funds.

Albermarle

martin7575 said:

@dunstonh - in term sof risk, at the moment the amount of money invested is small enough for me not to be too concerned  but as you say getting it right at the start is what i hope to do, its just difficult to but a framework on 60 seems right given my age 
 - are the OEIC funds part of the lifestrategy fund?

The Life Strategy funds are OEIC funds. 
You could also look at the HSBC Global Strategy funds. Similar to the Life Strategy funds, but are marginally cheaper and have performed a little better in recent year. They are available on II.

dunstonh

Vanguard offer three versions of the lifestrategy range.
DFM via OEIC, which has daily rebalancing
DFM via MPS, which has quarterly rebalancing.
DFM via MPS without home bias and has quarterly rebalancing.

All three versions cost the same at 0.22% (although the MPS is fractionally cheaper due to rounding upwards on the underlying funds.  i.e. 0.21x%).   Both of the MPS versions are only available via IFAs.

The OEIC version is the one you most often see referred to on the internet  with DIY investors.    It is also the weakest of the three in terms of performance.

Vanguard came to the UK in 2011 and disturbed the market.  For a period their multi-asset OEIC funds were the best option.   This is how they become so popular.   However, over the years since then, other fund houses have reacted.  Both undercutting Vanguard in cost and offering alternatives without VLS's weaknesses.  Vanguard appear to have recognised this weakness for IFAs with the introduction of the VLS Global without home bias but have yet to address it with DIY investors (who would use the OEIC version).  However, there are other fund houses, such as HSBC, who run similar at slightly lower cost without home bias and have been outperforming the VLS OEIC for many years.

Vanguard trackers in general areas tend to be expensive compared to other houses.  So, if you were building your portfolio, you wouldn't likely have Vanguard trackers in it for the main areas.   However, Vanguard have the most trackers in the minor areas and with currency hedging.  Their overall range is second to none.   So, you would more likely have Vanguard  as your currency hedged or niche area trackers.    However, you wont be building your portfolio, so, that is going off subject a bit.

There is no single fund house that is best in all areas.   So, be wary limiting your options to one fund house.   Vanguard is also a brand a bit like Apple.   It has its fanboys in much the same way.      They live and breathe the brand and create youtube videos and websites and promote it.     So, be wary of bias on the web.

martin7575

@dunstonh thanks for the detailed reply so with the 15k  i currently have ready to invest you would recceomend spreading over different funds or maybe put the 15 into something like the hsbc one and then when i add more in the new tax year invest in a different fund rather than all in one?

martin7575

@Albermarle thanks for that

martin7575

@dunstonh any other thoughts on needing to split the initial contribution? I figured it was already by nature hedged by being a global fund but still one fund house, given the small amount I considered putting it all in one fund but would you think that would be an issue?
https://www.ii.co.uk/funds/hsbc-global-strategy-balanced-c-acc/B76WP69/*

older_and_no_wiser

In your position I would go with a single multi asset fund - but not Vanguard LS.
You don't appear to be knowledgeable enough (yet) to split between core and satellite funds and with that low level of investment it's probably not worth it anyway.

I know some people are asking how long till you retire and suggest low risk funds if less than x years. I think the question is more how long till you think you want to access that money. Most of us stay invested in retirement and dialling down the risk can lead to lower returns unnecessarily. That's a problem with these lifestyling plans

martin7575

@older_and_no_wiser thanks and yes youre right about y knowledge although I know more than i did a month ago thanks to this forum.  ill give the HSBC one a try.  Is it normal for sipps to be made up on multiple funds?

martin7575

also do you think the hsbc fund is a good level of risk for my age?

martin7575

actually i can see the hsbc balanced fund is 70 / 30  rather than the 60/40 I was looking at with vanguard, not a huge difference