Fund choices

PeanutButter123

Hi there,

Bit of an odd one. Is anybody good at fund choices from my rail pension?

I'm 45 and I'm happy for a bit of risk as I have another pension.  

El_Torro

The Global Growth Fund and Global Equity Fund both look suitable for a 45 year old. 

Bear in mind that these funds are 100% equities so it's possible that in a crash the fund will halve in value. Can you handle this? When there is a crash the fund should recover but it might take a couple of years to get back to its pre-crash value. 

The Global Multi Asset Fund is less extreme, though still a volatile fund. The description you have posted doesn't say what percentage of the fund is bonds so it's not possible to say how much less volatile it is than the first two funds I mentioned. 

Apart from the 3 funds I've mentioned I probably wouldn't consider any of the others for a 45 year old.

FIREDreamer

El_Torro said:

The Global Growth Fund and Global Equity Fund both look suitable for a 45 year old. 

Bear in mind that these funds are 100% equities so it's possible that in a crash the fund will halve in value. Can you handle this? When there is a crash the fund should recover but it might take a couple of years to get back to its pre-crash value. 

The Global Multi Asset Fund is less extreme, though still a volatile fund. The description you have posted doesn't say what percentage of the fund is bonds so it's not possible to say how much less volatile it is than the first two funds I mentioned. 

Apart from the 3 funds I've mentioned I probably wouldn't consider any of the others for a 45 year old.

^^ Agree with this!

Marcon

Based on zero knowledge of you and your preferences other than you are 'happy for a bit of risk' (?how much is a bit?) and are 45, on what basis is anyone going to be 'good at fund choices'?

There are plenty of people who are going to be 'good' but only if they have relevant information, otherwise you might just as well stick a pin in the list.

You would probably feel more confident if you do some basic reading eg https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/pension-investment-options-an-overview

tacpot12

I think you should also consider the HSBC Islamic Global Equity Index. It's the best performing fund available to you by some margin. The risk and volatility might be a little higher that the other equity funds, but not by much. 

DRS1

You don't say what your other pension is.  Is it defined benefit or another DC scheme?  If another DC scheme what is that invested in?  Do you want the same thing for this one or something different?

You may also want to drill down in the Global Growth, Global Equity and Islamic Global Equity funds to see what the differences are.  Do any of those differences make you say That's the one for me?

Frankly you will have to make your own decision.  No-one knows where to invest for the future.  They just hope to spread their bets as widely as possible by going global.  But even that is no guarantee - bonds may outperform equities over the next 20 years.  Who knows?