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Creating the non equity part of your portfolio

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Comments

  • Ceme3000
    Ceme3000 Posts: 217 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    After reading the suggestions here and on a thread on the forums over at citywire, I am leaning towards a small amount in property and splitting the rest of the 40% between Capital Gearing Trust and VLS20. I may look at gold if the price drops. I think that should give me a good spread.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Ceme3000 wrote: »
    After reading the suggestions here and on a thread on the forums over at citywire, I am leaning towards a small amount in property and splitting the rest of the 40% between Capital Gearing Trust and VLS20. I may look at gold if the price drops. I think that should give me a good spread.

    That seems sensible....now how difficult was that?...not very. The trick is now to hang on tight if interest rates go up.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • mark55man
    mark55man Posts: 8,221 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'm not a gold bug, but don't discount gold just as its had a run up. I've been putting 5% away for years and its worked very well to counter volatility without undue downwards movements, although to be fair I did start at the bottom.

    its almost at the point now where its 14% of that particular tranche so I may rebalance and the recommendations here are interesting, although I am slightly limited in the funds/trusts I can have in my corporate scheme
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • jamei305
    jamei305 Posts: 635 Forumite
    Tenth Anniversary 500 Posts Name Dropper
    My view in holding CGT is that they have already decided an appropriate proportion of gold to hold, and that's what I pay them to do, so why should I skew that by having a separate holding?
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    jamei305 wrote: »
    My view in holding CGT is that they have already decided an appropriate proportion of gold to hold, and that's what I pay them to do, so why should I skew that by having a separate holding?

    Maybe hold more if CGT's holding of 1% is felt to be not enough. 1% of a portfolio will have almost negligible diversification benefits.
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