Simple balanced Portfolio Help

ciscobloke01

Hi

Looking for suggestions for funds to hold in a balanced portfolio that I can pretty much leave for the next 10+ years.  I know there will be many things to consider but all I am looking for is a mixed portfolio to save £750 each month for the next 10+ years.

I'm thinking so far of the below but wanted advise as to what else I need to add and best funds in these sectors.

S&P 500 Index
All-World Index

Cheers

eskbanker

As you say, it depends on many things but one in particular is what exactly you mean by a 'mixed portfolio', or a 'balanced' one for that matter.

If you mean covering most markets or sectors then the starting position for many would be a global equity tracker.

If you mean not just equities but also bonds, etc, then a global multi-asset fund is likely to be more suitable.

Or if you have more specific requirements then multiple products may be appropriate....

dunstonh

Looking for suggestions for funds to hold in a balanced portfolio that I can pretty much leave for the next 10+ years.  I know there will be many things to consider but all I am looking for is a mixed portfolio to save £750 each month for the next 10+ years.

If its £750pm for 10 years then you probably just want a single multi-asset fund and not run a portfolio of funds.

I'm thinking so far of the below but wanted advise as to what else I need to add and best funds in these sectors.
S&P 500 Index
All-World Index

The all world index would be fine a single fund if you are happy with 100% equities but you say you are looking for a mixed portfolio.  The S&P500 index fund shouldn't be used unless you plan to match it up with another 5-10 funds and then have the manual rebalancing work required.

ciscobloke01

dunstonh said:

Looking for suggestions for funds to hold in a balanced portfolio that I can pretty much leave for the next 10+ years.  I know there will be many things to consider but all I am looking for is a mixed portfolio to save £750 each month for the next 10+ years.

If its £750pm for 10 years then you probably just want a single multi-asset fund and not run a portfolio of funds.

I'm thinking so far of the below but wanted advise as to what else I need to add and best funds in these sectors.
S&P 500 Index
All-World Index

The all world index would be fine a single fund if you are happy with 100% equities but you say you are looking for a mixed portfolio.  The S&P500 index fund shouldn't be used unless you plan to match it up with another 5-10 funds and then have the manual rebalancing work required.

I guess,what I meant was not just in one area e.g S&P500/USA and cover/spread my investment around the globe.  Out of interest, why isnt the S&P500 a good choice?  It's averaged almost 10% for years hasnt it?

dunstonh

Out of interest, why isnt the S&P500 a good choice?  It's averaged almost 10% for years hasnt it?

...in a medium-term period when US equity has been the standout performer and fears that it is now in bubble territory due to tech.

However, the best sector/region/country wont be the best in every period.    You should checkout the first decade of this millennium to see just how bad US equity was compared to the rest.

Albermarle

ciscobloke01 said:

dunstonh said:

Looking for suggestions for funds to hold in a balanced portfolio that I can pretty much leave for the next 10+ years.  I know there will be many things to consider but all I am looking for is a mixed portfolio to save £750 each month for the next 10+ years.

If its £750pm for 10 years then you probably just want a single multi-asset fund and not run a portfolio of funds.

I'm thinking so far of the below but wanted advise as to what else I need to add and best funds in these sectors.
S&P 500 Index
All-World Index

The all world index would be fine a single fund if you are happy with 100% equities but you say you are looking for a mixed portfolio.  The S&P500 index fund shouldn't be used unless you plan to match it up with another 5-10 funds and then have the manual rebalancing work required.

I guess,what I meant was not just in one area e.g S&P500/USA and cover/spread my investment around the globe.  Out of interest, why isnt the S&P500 a good choice?  It's averaged almost 10% for years hasnt it?

Past performance is no indication of future performance.

In the long term US equity has generally been a good place to be, but in the short/medium term anything can happen.
If you have a global equity fund it will be 60/65% US anyway ( but not all S&P 500) 

'Balanced portfolio' does not have any specific definition but most people would be thinking something around 60% equities and the rest mainly in bonds/gilts.

Beddie

A popular choice is the range of HSBC Global Strategy Portfolios - they are multi-asset funds.

But if you're happy to be all-in to equities, a global tracker will do the job.

https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Eyeful

 If you read the following it should answer your question. You could just jump to point 4 below.

1.   The Simple method of investing boils down to this:

(a) Low Cost Global Multi Asset Funds (for Cautious types & those that want more Control)

     A ready made portfolio, where you pick the share/bond split, you are most comfortable with.

Example:  https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced

(b) Passive Low Cost Global Index Tracking Funds or ETF's (for the Adventurous with a very long time frame) 

     Here its shares = 100%. It may produce the highest return but is the most risky.

Example: https://www.trustnet.com/factsheets/o/kldq/hsbc-ftse-all-world-index

2  Academic research shows that most "active fund managers" after charges are applied,

    do not beat a MAJOR  GLOBAL WORLD INDEX. 

3.. Before investing:

(a) Clear all expensive debt first (except for mortgage)

(b) Have a "Rainy Day" account for emergencies (6 months of house hold bills, is often quoted).

4  SIMPLE INVESTING IN DETAIL (advantages, easy to understand  & implement).

(a) First watch this: https://www.kroijer.com/

(b) Then read these

     https://monevator.com/passive-fund-of-funds-the-rivals/

     https://monevator.com/best-global-tracker-funds/