Too much TECH in isa?

sidneyyoungblood

A bit of advise please on my stocks and shares ISA which is around 50% tech .

This is due to both Palantir and my Legal tech fund increasing in value over the last year or so and now it is more than 50% of my portfolio . 

Is this a very risky position to be in at the moment with a possible AI bubble and world events . I am 50 now and looking to use it within the next 5 - 10 years ..  I do suffer from fomo which so want to buy and leave it otherwise I would get carried away and jump in on gold at ATH ...

Any help would be much appreciated 

El_Torro

Many people (myself included) rebalance their portfolio every so often, say once a year. If your Legal tech fund now makes up a bigger percentage of your portfolio than it used to then maybe it's time to rebalance.

I would be more concerned about your individual UK stocks, even though it only makes up about 10% of your portfolio. I would transfer all this to a UK fund, or even stick it in your HSBC fund. 

Yes, we might be in a bubble. I wouldn't go too crazy and put all your money in gold though. History might prove me wrong but as we know trying to time the market rarely pays off. 

eskbanker

sidneyyoungblood said:

Is this a very risky position to be in at the moment with a possible AI bubble and world events .

It's a very risky position to be in at any time!

Linton

sidneyyoungblood said:

A bit of advise please on my stocks and shares ISA which is around 50% tech .

This is due to both Palantir and my Legal tech fund increasing in value over the last year or so and now it is around 50% of my portfolio , 40% the HSBC Global FTSE Dynamic ( which is also tech heavy) and around 10% of random UK stocks ( lloyds , bp , Astrazenica ) .. 

Is this a very risky position to be in at the moment with a possible AI bubble and world events . I am 50 now and looking to use it within the next 5 - 10 years ..  I do suffer from fomo which so want to buy and leave it otherwise I would get carried away and jump in on gold at ATH ...

Any help would be much appreciated 

It is extremely risky.  You could easily face a fall of say 60% at some time.  It is especially risky if you plan to use it in 5-10 years as there could be insufficiant time for a recovery if a crash occured before then. So your 5-10 year plan could be ruined.

Hiow much money is involved?  How much will you need when you take it in 5-10 years?  If you are nearly where you want to be you could sensibly reduce the equity considerably.

sidneyyoungblood

Linton said:

sidneyyoungblood said:

A bit of advise please on my stocks and shares ISA which is around 50% tech .

This is due to both Palantir and my Legal tech fund increasing in value over the last year or so and now it is around 50% of my portfolio , 40% the HSBC Global FTSE Dynamic ( which is also tech heavy) and around 10% of random UK stocks ( lloyds , bp , Astrazenica ) .. 

Is this a very risky position to be in at the moment with a possible AI bubble and world events . I am 50 now and looking to use it within the next 5 - 10 years ..  I do suffer from fomo which so want to buy and leave it otherwise I would get carried away and jump in on gold at ATH ...

Any help would be much appreciated 

It is extremely risky.  You could easily face a fall of say 60% at some time.  It is especially risky if you plan to use it in 5-10 years as there could be insufficiant time for a recovery if a crash occured before then. So your 5-10 year plan could be ruined.

Hiow much money is involved?  How much will you need when you take it in 5-10 years?  If you are nearly where you want to be you could sensibly reduce the equity considerably.

Thanks ,  its around 140 mark  really because of the tech / palantir ..  The plan is not really to use it in 5 - 10 years  as hopefully I will be able to continue to work but in my head always feel I need a backup plan just in case my I cant work or my sale collapse ..  

The two tracker funds I own are 

HSBC IDX TKR INV FTSE ALL WORLD INDEX C ACC  (MDAABG)

HSBC OPENFUNDS GBL STRAT DYNM PTF C ACC  (MDYNAM)

Eyeful

1. FOMO, makes you your worst enemy.

2. You are supposed to buy low and sell high. So you want to buy gold at its highest ever price.

3. You are in a very risky area of the market and appear to be worried about it.
Then sell and and move into a less risky part of the market or a Short Term Money Market Fund

4. Your investments should not cause you to worry or loose sleep at nights.
 If they do your risk level is set too high.

4. Any money you will need within the next 5 years should be with:
NS&I where it is 100% protected,
Savings account covered up to £85k, by the  FSCS Savings Protection Scheme.

5. Maybe you should
(a) Watch:  https://www.kroijer.com/
(b) Read: https://monevator.com/passive-fund-of-funds-the-rivals/

sidneyyoungblood

Eyeful said:

1. FOMO, makes you your worst enemy.

2. You are supposed to buy low and sell high. So you want to buy gold at its highest ever price.

3. You are in a very risky area of the market and appear to be worried about it.
Then sell and and move into a less risky part of the market or a Short Term Money Market Fund

4. Your investments should not cause you to worry or loose sleep at nights.
 If they do your risk level is set too high.

4. Any money you will need within the next 5 years should be with:
NS&I where it is 100% protected,
Savings account covered up to £85k, by the  FSCS Savings Protection Scheme.

5. Maybe you should
(a) Watch:  https://www.kroijer.com/
(b) Read: https://monevator.com/passive-fund-of-funds-the-rivals/

Thanks for taking the timeout to respond ,  will check out the information at the links .. Like you said FOMO is a very dangerous and has caught me out before ... Would a standard FTSE tracker like the ones I have be classed as less risky ?

masonic

As the "FTSE tracker" in question is tracking the FTSE All World index (not the FTSE All Share or FTSE 100, which track only the UK market), then it has a large helping of tech (probably enough for most appetites), but also gives you the benefit of lots of other companies in different industries. So it would take you down from extreme risk to high risk. If you want to reduce risk more than that, then you'd need to look at including other asset classes like bonds or cash, which would dilute your risk further. But moving away from having such a large part of your portfolio in an individual tech stock and fund would be a large step in the right direction.

Eyeful

Put it this way,  if I wanted to reduce the risk of the portfolio you mentioned, I would just keep the
HSBC IDX TKR INV FTSE ALL WORLD INDEX C ACC  (MDAABG) and get rid of the rest.
This HSBC fund has an ONC of 0.13% and over 3600 companies, so there is little chance of missing out.

What I would not do is hold single shares.

I have never suffered from FOMO and our risk profiles may be different.

This may or may not be of interest to you:
https://monevator.com/best-global-tracker-funds/

GazzaBloom

We have 15% of our portfolio in the L&G Global Tech Index Fund and have no plans to change that. It can be more susceptible to higher levels of volatility than an equity fund that is more widely diversified across business sectors and regions (which we also hold) but is a great fund to hold to increase exposure to Tech companies without resorting to individual stock bets or even more niche tech funds like those that Ark offer. It will rebalance across its 250 or so holdings over time as companies and specific technologies rise and fall (see where Nvidia was in it's holdings 5-10 years ago)

Yes there is a lot of talk about AI bubbles and echoes of the dot com boom and bust, but, I ignore the noise and take the long view. We're not going back to the horse and cart or cathode ray TVs for that matter. Tech will help us solve more of the problems we are creating for ourselves and the planet, and will continue to propagate further into our lives. I can't see it ever being anything other than a growth sector as long as humans and capitalism exist.

Having said that, we do rebalance our portfolio occasionally to keep it around 15% or so and at the other end of the portfolio bar bell is 36% cash as risk off counter weight. We top sliced the tech fund a couple of times in 2024 and I was looking at taking some more growth off soon but Friday's sudden jolt down and any further market response to Trump's "Chyna" toilet tweets may negate the need in the short term.

At 50% it seems your instincts tell you it's too much so why not just reduce the holding to a level where a market crash would not derail your plans?

sidneyyoungblood

Thanks for all the advice looking , if I sell a percentage of  the Tech fund today when would it get valued at  at the end of  today ..


Here is the current break down ..

50k in HSBC FTSE World Tracker
50k in Legal and General tech
25k in Palantir 
7k in HSBC Open funds Dynamic 
2.5k in SMT 
Rest in lloyds , BP , Astra Zeneca , 

it total currently 150 (around 7 percent down since monday ) ..

Have 50k in Premium bonds and around the same again in my cash isa which are hopefully to be used for a house deposit .

Sleepless nights worrying and logging in everyday is getting too much for me espeically when I dont really know what  I am doing ...   Is it worth speaking to a financial advisor ?

I am 50 now , I have no plans to use it for atleast 10 years but as I am self employed not too sure what the future holds.