Rebalancing ISA - where to start

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81938125#Comment_81938125

My IFA manages my SIPP. This is money I want to control myself. I agree, there is a lot I don’t know. The funds were bought because that sector was thought to be doing well at the time. I’m good at buying, but less good at selling, so I have things I should probably sell and use the proceeds for a general tracker. Some funds have done unbelievably well for many years and I’m happy to keep some money in riskier funds for a higher expected return. What I don’t want to do is buy something that duplicates funds I’ve already got, by investing too heavily in a sector I’m already sufficiently exposed to. I’m also reluctant to sell something that has continuously performed exceptionally well, though I appreciate that carries a risk.

what I’ve learnt from this thread is that I should sell some stuff and invest more in a general tracker. Whereas I thought the answers would be that I am low on sector X and should buy that with the cash in the ISA. So I’ve learnt a lot just from being here.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81938265#Comment_81938265

Managing a relatively large number of funds can be difficult and you end up a bit paralyzed. You need to come up with a target asset allocation - say 50% global equities; 10% UK equities; 30% bonds and 10% specialities etc. This should reflect you tolerance for risk and financial goals. Then implement that with as few funds as possible. When I was working I made a rule to never have fund allocations less than 20% of the entire portfolio, apart from cash which I kept between 5% and 10%. This kept the number of funds down and stopped me from speculating too much.

Since retiring I've basically had 3 funds, a global equity tracker, a domestic equity tracker and a multi-asset income fund that owns bonds and dividend companies. The portfolio has had an 11% average annual growth for the last 12 years ie. it has more than tripled in value.