SIPP

eskbanker

martin7575 said:

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

It doesn't use a fixed allocation, but a risk-based methodology, and is currently 53.47% equities, 39.18% bonds, 5.8% property and 1.55% cash/liquidity:

https://www.assetmanagement.hsbc.co.uk/en/individual-investor/funds/gb00b76wp695?t=3

martin7575

ok thanks, ill probably go with the hsbc fund. As a new SIPPer, im thinking about the need not to worry too much about ups and downs - but wonder what a good strategy is to manage the SIPP - keep adding in and look at it 5 years befor needing the cash? 

martin7575

although looking at the detail the cautious and balanced hsbc global funds both have the same risk profile of 4, making it more difficult to pick...

dunstonh

martin7575 said:

although looking at the detail the cautious and balanced hsbc global funds both have the same risk profile of 4, making it more difficult to pick...

Th 1-7 scale on KIID's has flaws.   i wouldn't use them.

martin7575

is there a better way to pick a global fund?

Albermarle

martin7575 said:

although looking at the detail the cautious and balanced hsbc global funds both have the same risk profile of 4, making it more difficult to pick...

IIRC, some of the Vanguard Life Strategy funds have the same issue . Same risk rating, for different equity %

martin7575

@Albermarle would you say there is much difference then between the hsbc global balanced and vanguard  60/40?
i need to find a way to make that final decision. 

martin7575

is it more expensive to hold two funds? considering splitting  the cash into one more adventurous fund and also hedge my bets

Quorden

martin7575 said:

@Albermarle would you say there is much difference then between the hsbc global balanced and vanguard  60/40?
i need to find a way to make that final decision. 

Simple explanation of some of the differences here; https://www.trustnet.com/news/13392858/the-mixed-asset-rival-experts-prefer-to-vanguard-lifestrategy-60-equity.

In brief HSBC has a marginally lower ongoing charge figure, doesn't stick as religiously as Vanguard to the 60/40 strategy and historically has had a higher concentration of US stocks.

is it more expensive to hold two funds? considering splitting  the cash into one more adventurous fund and also hedge my bets

Think the simple answer is that as long as you're holding them on the same providers platform (such as II, Hargreaves etc) then the charge will be the same. That being said different platforms have different charging policies, some have a flat rate monthly charge and others have a % charge based on the value of the funds, easy to check on each platforms website to check the fees and work out which would be best for you.

One thing to consider when splitting the cash into different funds (something I did when I started my DIY SIPP and now consider a mistake) is that unless you know what you're doing you could end up with a lot of over-lap without any real benefit. Perhaps better to work out your risk tolerance and your goals then invest in the appropriate fund , after that take time to do research (this forum is great for that) before building up mix of funds.

martin7575

@Quorden would you think as a start it would be reasonable to put the 15k i have into a balanced HSBC global fund?   I realise thees a lot of personal factors but any red flags from anyone before I go ahead?