VLS80 + What else?

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  • DennisTenus
    DennisTenus Posts: 483 Forumite
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    bowlhead99 wrote: »
    Nobody in this thread is saying it is the best option for all. It's just being suggested that if OP has it and understands it he might as well buy more of it, as there is minimal value in going bespoke at minimal values.


    So, well done, you selected higher risk funds in a period when markets were going up, and you got a better return. How would they have done in a period when markets were not all going up so emphatically? The point of investing is to buy something that suits your needs; not to get the highest return in a short period by buying a risky selection of holdings and hope you won't have to laugh off the heavy losses.

    So you can compare it against many other funds which take the same sort of risks, and it performs OK against them. And it's globally diversified, holds multiple asset classes, with a low OCF. Job done.

    So, remind me why we shouldn't suggest that the OP, who has already invested £3k into it, invest his next £2k into it too? The fact that having it as a lazy option suitable for newbies gets a bit monotonous is not a good reason for him to avoid it. If you suggest something else would be better for him, ensure you accommodate the limited information you have about his needs, his knowledge and understanding of investment funds generally

    I don't know what the point is, it's your post :D

    There's plenty enough risk in investing in something that could lose 40% or more in a crash such as VLS80. By contrast, there's not a huge amount of 'risk of missing out' on returns by capping your equity content at 80% of your fund holdings. If you are like the OP, considering investing £2200-2300 in a fund (not £220000-230000), it seems pretty fit for purpose.

    You really think its likely that a crash would drop funds by 40%?!

    It shouldn't matter whether OP has £2 or £200000000 it's all relative. A lot of money for one person is different for another so I don't see the difference in only considering non multi asset funds if you have a larger portfolio.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    DennisTenus wrote: »
    You really think its likely that a crash would drop funds by 40%?!

    Sure if investing in mostly equities that seems very likely to happen again at some time in the future.

    Alex
  • DennisTenus
    DennisTenus Posts: 483 Forumite
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    Alexland wrote: »
    Sure if investing in mostly equities that seems very likely to happen again at some time in the future.

    Alex

    Some time in the future could be 5 years off or longer???
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    DennisTenus wrote: »
    Some time in the future could be 5 years off or longer???
    Or it could be tomorrow or next month etc. No one is underwriting markets against losses over any period
  • Alexland
    Alexland Posts: 9,653 Forumite
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    edited 15 August 2018 at 4:49PM
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    DennisTenus wrote: »
    Some time in the future could be 5 years off or longer???

    Sure it's hard to know when these things will happen, where the market bottom will be or how long the recovery will take. It's only a problem if you withdraw money to meet income needs or because of a behavioural reaction. Might also cause a few sleepness nights for those who have not been through it before.

    If you want to read up attempts to anticipate these events then look at Shiller's CAPE ratio.

    Alex
  • DennisTenus
    DennisTenus Posts: 483 Forumite
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    Alexland wrote: »
    Sure it's hard to know when these things will happen, where the market bottom will be or how long the recovery will take. It's only a problem if you withdraw money to meet income needs or because of a behavioural reaction. Might also cause a few sleepness nights for those who have not been through it before.

    Alex

    Exactly.

    Thing is even with VLS80 that doesn't really protect against that does it? or are you saying that LTGE may drop 40% but VLS80 would only drop 30% in comparison?
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    DennisTenus wrote: »
    It shouldn't matter whether OP has £2 or £200000000 it's all relative.
    But it does matter. If I was working and had a couple of grand invested and I had a paper loss of £800 I'd think meh, what's on the telly tonight. If I had £500,000 and it lost £200,000, or fours years worth of a good salary, I'd view it somewhat differently, especially if I was retired and it was my primary source of income
  • eskbanker
    eskbanker Posts: 31,070 Forumite
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    DennisTenus wrote: »
    You really think its likely that a crash would drop funds by 40%?!
    As above, if you really don't think this is a possibility, you should prepare yourself for a nasty shock with your high-risk investments when (not if) less benign market conditions come around.
    DennisTenus wrote: »
    It shouldn't matter whether OP has £2 or £200000000 it's all relative. A lot of money for one person is different for another so I don't see the difference in only considering non multi asset funds if you have a larger portfolio.
    Please elaborate on how to construct (and keep balanced) a well-diversified portfolio across multiple assets, sectors, etc, with £2, or £200, or even £2000.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    DennisTenus wrote: »
    Exactly.

    Thing is even with VLS80 that doesn't really protect against that does it? or are you saying that LTGE may drop 40% but VLS80 would only drop 30% in comparison?

    An equities fund could drop 50% when an 80/20 fund 'only' drops 40%.

    LTGE is interesting case as the defensive equities may 'only' drop like an 80/20 fund.

    Alex.
  • DennisTenus
    DennisTenus Posts: 483 Forumite
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    Alexland wrote: »
    An equities fund could drop 50% when an 80/20 fund 'only' drops 40%.

    LTGE is interesting case as the defensive equities may 'only' drop like an 80/20 fund.

    Alex.

    defensive equities ?
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