adding to a SIPP

martin7575

After lots of research here I finally managed to get 15k into a SIPP with ii.- hsbc global strategy balanced.
im considering either another lump sum in the new tax year or investing a regular amount. Question is should i keep adding to the same fund or look at other investments. I did think about investing into the hsbc dynamic fund to hedge my bets with a more equity skewed fund.im considering adding 20k as a lump sum and 1000 p/m. Funds are from my company.

thanks for any advice

ColdIron

martin7575 said:

After lots of research here I finally managed to get 15k into a SIPP with ii.- hsbc global strategy balanced.

First of all well done

im considering either another lump sum in the new tax year or investing a regular amount. Question is should i keep adding to the same fund or look at other investments. I did think about investing into the hsbc dynamic fund to hedge my bets with a more equity skewed fund.im considering adding 20k as a lump sum and 1000 p/m.

If the balanced fund was right for you then adding to it makes sense. The dynamic fund is a step up in volatility. Only you know what is right for you

martin7575

@ColdIron thanks for your input it was really helpful.
Im just not sure how a sipp is normally structured - multiple investments? - I realise my question is a personal one, It was more a case of the idea of having 2 funds to offer some extra potential for growth while having the balanced fund to offer some stability, in principle is this a sound idea?

Also in terms of monitering it over the years, is there anything to look out for / would there ever be a need to make changes or just accept the ups and downs until i get closer to retirement?

thanks again

dunstonh

Im just not sure how a sipp is normally structured - multiple investments?

You should structure it to match your chosen investment strategy.

 It was more a case of the idea of having 2 funds to offer some extra potential for growth while having the balanced fund to offer some stability, in principle is this a sound idea?

The balanced one can go to around 67% equities and the Dynamic to around 8x%.  So, there isn't much difference between the two.   So, its largely pointless to mix and match as you would be creating a circa 7x%

Also in terms of monitering it over the years, is there anything to look out for / would there ever be a need to make changes or just accept the ups and downs until i get closer to retirement?

Things change.     The HSBC multi-asset funds are highly regarded at the moment and are probably the best OEIC MPS going.    They are only beaten by some IFA MPS which you don't have access to (including, ironically, the HSBC GS MPS & Vanguard LS Global versions both beat the OEIC).      However, things change. A decade ago, the Vanguard Lifestrategy funds were considered best, but others came in afterwards and did better (removed home bias and lowered their charges).       HSBC themselves are increasing their charges this week to align with the MPS versions.   Still just undercutting VLS, but it could be different next year or the year after.       So, yes, you need to keep an eye on them.     The HSBC GS funds won't go bad and it wouldn't matter if you didn't look at them again.   Its more a case of checking it is optimal in case others pop in ahead of them.

martin7575

@dunstonh thank you.
investment strategy is more a case of save some tax, put something away and try to keep pace with inflastion, beyond that there isnt a strategy.

dynamic has 20% more equities which seemed a fair jump but do you think it would need to be the adventurous option at 82% to offer any counter to the balanced fund?

Ill obviously keep an eye on things but just trying to understand how often and in what way to review. I guess costs and performance! - could you suggest a good place (other than here !) to do those checks?

dunstonh

investment strategy is more a case of save some tax, put something away and try to keep pace with inflastion, beyond that there isnt a strategy.

That is more planning rather than investment strategy.

Investment strategy is how you build a portfolio.   What process and methodology are you using etc.    In your case, you have outsourced that to HSBC who will do all those things within the target volatility range of that fund.   So, as long as the volatility level is within your tolerance, HSBC will do the rest.

dynamic has 20% more equities which seemed a fair jump but do you think it would need to be the adventurous option at 82% to offer any counter to the balanced fund?

The HSBC funds are not static on the equity ratios.   So, be wary of looking at a snapshot of the equities/bonds ratio.   What you see on a given date could be understating the more typical ratio.

Ill obviously keep an eye on things but just trying to understand how often and in what way to review. I guess costs and performance! - could you suggest a good place (other than here !) to do those checks?

I am not the best person to answer that as I have different tools and resources to what DIY investors use.    I suspect here is probably a good place as any to discuss trends on the multi-asset funds.    Things are unlikely to change frequently.   Probably check every 3 years.

martin7575

thank you @dunstonh for some clarity and for chipping in on my questions throughout