New SIPP - 45k Pot to invest

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topcatz1
topcatz1 Posts: 24 Forumite
in Pensions, annuities & retirement planning
Hello,

I have an old work place pension pot of 45k that I'm thinking of moving to a SIPP and investing in a number of funds in different sectors/regions. I'm thinking of investing in about 8 or 9 different funds (roughly 5k per fund). Is that a good strategy or should I be aiming for less?

Thanks!

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  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    Its an okay number of funds but it depends what they are, and what weighting you apply to each fund. For example you might want a larger amount in a mainstream global equity fund, and a much smaller percentage in an emerging markets fund.

    However if you are unsure or not confident about picking your own funds, investing the whole sum in a low cost globally diversified multi asset fund, suitable to your risk level, would be a good choice. Some examples discussed a lot on this forum are Vanguard Life Strategy funds, HSBC Global Strategy funds and L&G Multi Index funds.
  • Albermarle
    Albermarle Posts: 22,170 Forumite
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    investing the whole sum in a low cost globally diversified multi asset fund, suitable to your risk level, would be a good choice.
    One point to think of here is that the existing ex workplace pension could well be already invested in a default fund , which are usually similar to a multi asset funds.
    In this case the only reason to change would be if the SIPP had lower charges , which is not always the case.
    I'm thinking of investing in about 8 or 9 different funds
    If you do this you will probably be better with a SIPP with no charges for buying or selling funds .
  • topcatz1
    topcatz1 Posts: 24 Forumite
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    Yes it's a default fund (Aviva Pension Managed XE) which i'm struggling to find much information on. The management fees are pretty low at 0.46% but the SIPP fees are lower.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    topcatz1 wrote: »
    I have an old work place pension pot of 45k that I'm thinking of moving to a SIPP and investing in a number of funds in different sectors/regions. I'm thinking of investing in about 8 or 9 different funds (roughly 5k per fund). Is that a good strategy or should I be aiming for less?
    And, what are you looking to achieve with your 8 or 9 funds with approx £5k in each?

    The reason I ask is that you may be just as well off by putting it all in one multi-asset multi-sector global fund. You could then see if you would be better off with a flat rate provider who may charge a transaction costs.

    Depends what you are looking to achieve.
    Personal Responsibility - Sad but True :D

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  • EdSwippet
    EdSwippet Posts: 1,588 Forumite
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    topcatz1 wrote: »
    Yes it's a default fund (Aviva Pension Managed XE) which i'm struggling to find much information on. The management fees are pretty low at 0.46% but the SIPP fees are lower.
    SIPP fees are not necessarily lower, if your current Aviva 0.46% is all-inclusive of both platform and fund charges. SIPP platform charges alone come in around 0.25% (Youinvest) to 0.45% (Hargreaves Lansdown), and then you have to add fund charges on top.
  • recruit18
    recruit18 Posts: 40 Forumite
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    I've just opened a Cavendish SIPP for my wife. Lowish 0.25% fee and what I liked was no charges for buying/selling funds.

    AJ Bell I think was £1.50 per trade
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    topcatz1 wrote: »
    Hello,

    I have an old work place pension pot of 45k that I'm thinking of moving to a SIPP and investing in a number of funds in different sectors/regions. I'm thinking of investing in about 8 or 9 different funds (roughly 5k per fund). Is that a good strategy or should I be aiming for less?

    Thanks!

    Why? Seriously. Whats your thinking there? Careful you dont end up creating either an expensive tracker from multiple manged, or your own custom tracker when one would do the job.
    Fair enough if you already have some in mind but if you dont, perhaps start with what areas you want to invest in and see if 8 or 9 funds* falls out naturally from that.

    * will it be funds or ITs or ETFs or a mixture?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    recruit18 wrote: »
    I've just opened a Cavendish SIPP for my wife. Lowish 0.25% fee and what I liked was no charges for buying/selling funds.

    AJ Bell I think was £1.50 per trade
    Was it in the past week? - I tried two weeks ago but their platform wouldn't allow me to choose the funds and I couldn't complete it
    Sent them a email and they said it was a problem with the link to Fidelity
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