Views on my portfolio

dellboy48

I am a newbie investor and want to put away about £4000 (his money from grandparent gifts) this year for my 14 year old son. This would be for at least 10 years and I may add to it. As this is long term I could tolerate 20% losses without worry or wanting to pull out. My son also has about £3000 as 'cash' for shorter term use.

My picks are (via discount broker):

1. Artemis High Income £1000 (UK other bonds)
2. SWIP Property Trust £1000 (property b&m)
3. Inv Perp High Income £1000 (UK equity income)
4. Schroder European Alpha Plus £1000

In future years I have thought of adding Jupiter High Income (UK equity & bond), JM Worldwide Global Growth and JPM Natural Resources to increase geography (and risk depending on how much in each). I would try to rebalance each year.

I would be really grateful for views on the overall risk and allocation of those picks. I promise not to take offence at criticism as I am here to learn from those with experience.

Thanks in advance

Dell

purch

Quite a 'low risk' spread

Personally over a 10 year timespan I might choose a 'spicier' mix (most of my kidz money is in Generalist investment trusts)

P.S. It's always good to pick funds with 'High' or 'Alpha' in the name

Aegis

dellboy48 wrote: »

I am a newbie investor and want to put away about £4000 (his money from grandparent gifts) this year for my 14 year old son. This would be for at least 10 years and I may add to it. As this is long term I could tolerate 20% losses without worry or wanting to pull out. My son also has about £3000 as 'cash' for shorter term use.

I like the plan! certainly better than buying Premium Bonds, and much more likely to generate a decent return.

My picks are (via discount broker):

1. Artemis High Income £1000 (UK other bonds)
2. SWIP Property Trust £1000 (property b&m)
3. Inv Perp High Income £1000 (UK equity income)
4. Schroder European Alpha Plus £1000

My initial thought is that it probably just about matches your risk profile (though I'm only guessing, I'm not a financial adviser and I'm not using a portfolio analysing package or anything!). It's not particularly diverse, but with only £4k that's fairly understandable. You could feasibly switch some funds out of the European fund and into other slightly higher risk ventures without concentrating all of your high-risk investing into one geographical sector, but that's purely up to you.

In future years I have thought of adding Jupiter High Income (UK equity & bond), JM Worldwide Global Growth and JPM Natural Resources to increase geography (and risk depending on how much in each). I would try to rebalance each year.

Adding one of the latter and the Jupiuter fund at the same time would probably help keep your risk profile within the level you want it at, as long as ytou're comfortable with fairly large swings in value for the riskier funds there.

I would be really grateful for views on the overall risk and allocation of those picks. I promise not to take offence at criticism as I am here to learn from those with experience.

I'm only really familiar with one of your funds, though I've heard a fair bit about the other three. However, you seem to have matched your fund selection to your risk profile quite nicely, and although your geographical weighting is strongly euro-centred, you've identified the possibility of expanding when more funds are available to include a wider variety of locations.

All in all, it seems fine to me, no obviously glaring errors.

Again, I'm not a financial adviser, so definitely don't treat this as gospel

dunstonh

I thought it was quite a good spread for £4k. Its in four different sectors and the funds are fine.

Compliance note. although I am an IFA, the comments here do not represent financial advice.

dellboy48

:T Your replies have given me a boost of confidence. I fully understand that the investment responsiblity is 100% mine but to have the eyes of experience run over my newbie choices is invaluable. From my reading of previous posts "quite a good spread" from dunstonh makes me breathe easier.

Thanks for the tip Purch.

As you could tell I am on the cautious side so, Aegis, I appreciate your comments on my later more risky funds. Does anyone think I am pushing it too far with JM Worldwide Global Growth and JPM Natural Resources? I was thinking to have smaller amounts in them so the property and bonds in the earlier funds would balance the risk out.

Thanks

Dell

purch

A lot of the Funds in the Global Growth sector would not be classed as high risk (although some are)...some of the Funds could easily be classed as 'Balanced'. Using the right Global Funds, you could add diversity to the portfolio without adding risk.

JPM Natural Resources..........(I do hold this one) or any other specialist fund needs a lot more thought, but if you have a decent portfolio spread much of the risk would be balanced out.


P.S. To achieve true balance I think you need Funds with Focus and/or Select in the name