Comments welcome on this portfolio:

john_kane_2

emerging 15%:
First State Greater China Growth 7.5%
Allianz RCM BRIC Stars 7.5%
global 50%:
Neptune Global Equity 10%
JP Morgan Global Equity Income 15%
Aberdeen World Equity 10%
Artemis Global Growth 10%
MFM iFunds global growth 5%
commodities 35%
JM Finn Global Opportunities 5%
M&G Global Basics 5%
BlackRock Merrill Lynch Gold & General 5%
CF Eclectica Agriculture 5%
JPMorgan Natural Resources 5%
MFM iFunds ETF Commodity Fund 10%

am i simply investing in what has done well in the past, or are these genuinely wise investments for the next 10 years (i would slowly decrease holdings in commodities and switch to more developed equities).

annual charge weighted: 1.43%
initial charge weighted: 0.2%

also, if i were to invest in etfs, which site has the cheapest way to invest in etfs (if you were to regularly top up your investment in them).

many thanks if you can post your thoughts. i am 23 years old and am willing to take on high risk to try and achieve high returns over the next 10+ years.

john

Graeme7777

Hi,

I'm no expert on any of the funds you've listed but the question that springs to mind is why you would want to hold 5 Global Equity funds? Are you satisfied that they're are different enough in strategy to prevent you paying more than once for exposure to the same assets?

Cheers!

Aegis

john_kane wrote: »

emerging 15%:
First State Greater China Growth 7.5%
Allianz RCM BRIC Stars 7.5%
global 50%:
Neptune Global Equity 10%
JP Morgan Global Equity Income 15%
Aberdeen World Equity 10%
Artemis Global Growth 10%
MFM iFunds global growth 5%
commodities 35%
JM Finn Global Opportunities 5%
M&G Global Basics 5%
BlackRock Merrill Lynch Gold & General 5%
CF Eclectica Agriculture 5%
JPMorgan Natural Resources 5%
MFM iFunds ETF Commodity Fund 10%

Strikes me as one of the highest risk portfolios I've ever seen to be honest... You'd better be prepared for a very bumpy ride as time goes on!

About the only portfolio I've seen with a higher risk level is wombat42's, and he's always after the next big thing!

john_kane_2

Hi Graeme,

thanks for the post. I believe it doesnt matter how many funds I have in terms of charges, as the charges are a % of what I invest, so the only variable in terms of how much I am charged is the amount in invest rather than the number of funds.

john

john_kane_2

Hi Aegis,

thanks also for your thoughts. it is very high risk i agree, i am not worried about the volatility, just everything i read points to the best returns being in global growth funds, emerging markets and commodities over the next ten years. ill switch to developed markets more in around 2 years once all the financial writedowns have been made. i'm a believer in the $1 trillion writedown potential, jim sinclair, jim rogers.

dunstonh

charges are percentage based so that isnt an issue. 20 funds of £5000 charging 1.5% pa is the same as 1 fund of £100000 charging 1.5%

The portfolio is very high risk and certainly one that is capable of potential losses of 70% a year.

just everything i read points to the best returns being in global growth funds, emerging markets and commodities over the next ten years.

It smacks of fashion investing and like any fashion, it is good for a while but will go out of fashion quite quckly. Its not diversified enough.

john_kane_2

Hi dunstonh,

I agree it does smack of fashion investing which does concern me. trying to chase the highest return will inevitably end in me selling at the lows when i get scared of losing even more than i have in a big downswing.

how about having:

45% balanced managed funds:
AXA Framlington Managed Balanced 10%
Neptune Balanced Fund 15%
Schroder Managed Balanced 10%
another balanced fund 10%

Global growth: 20%
Neptune Global Equity 10%
Aberdeen World Equity 10%

Emerging markets: 10%
First State Greater China Growth 5%
Allianz RCM BRIC Stars 5%

Commodities: 25%
BlackRock Merrill Lynch Gold & General 5%
CF Eclectica Agriculture 5%
JPMorgan Natural Resources 5%
MFM iFunds ETF Commodity Fund 10%

i am 23 and will be putting all income-expenditure into this. i currently have £100k in savings for a house deposit to buy a house in a couple of years when (hopefully) i qualify as an accountant and my salary goes up a fair bit.

john

Graeme7777

Hi John,

Sorry, I wasn't very clear in my comment. What I was questioning whether there is significant overlap between the holdings of the different Global Equity portfolios? Why not pick the best Global Equity fund you can find rather than 4 or 5?

The American investor Warren Buffett (up there with Bill Gates in wealth terms) suggests that diversification can be overdone. He seems to suggest that it is better to hold a few investments that you really understand for the long term, rather than trying to switch with the gyrations of the market and run the risk of selling great assets for ones of a lower quality. Despite what people often suggest, fees can make a significant difference to your final return in the long term.

Graeme7777

John, if you look around on the internet you'll find some suggested asset allocations for different investor profiles, based on age, risk tolerance etc. If memory serves, Fidelity has such a section on its fund supermarket website.

john_kane_2

Hi Graeme,

There definitely will be some overlap between some of the funds, but i figure it's a safer option than just punting for one of them. ive read over them briefly and they all have slightly different investing strategies.

i agree about fees can be a real killer long term, i would go for index funds but in todays troubled times id rather have an active manager who can switch some into cash.

thanks for the thought about using a portfolio planner, ive looked at a couple of them, the only problem is they are too weighted in US stocks and too little in commodities for me, given i am a jim rogers and jim sinclair fan.

thanks again for your thoughts and any thoughts from you or anyone else on the above portfolio (45%, 20%, 10%, 25%) much appreciated.

john

john

wombat42_2

Aegis wrote: »

Strikes me as one of the highest risk portfolios I've ever seen to be honest... You'd better be prepared for a very bumpy ride as time goes on!

About the only portfolio I've seen with a higher risk level is wombat42's, and he's always after the next big thing!
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Trust_No_1 went for higher risk than me with his 100% Gold/Silver commodity investment. I am not a risk junkie as i have a decent cash buffer. I am also in it for about 10 years. I wouldnt dream of doing what the OP is doing unless he has a very sizable cash buffer and is investing for 5 years absolute minimum.

As i have mentioned before, MFM iFunds ETF Commodity Fund is the least risky direct commodty vehicle there is.