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  • FIRST POST
    • andy001
    • By andy001 7th Jan 18, 11:19 AM
    • 42Posts
    • 17Thanks
    andy001
    Investment plan- advice
    • #1
    • 7th Jan 18, 11:19 AM
    Investment plan- advice 7th Jan 18 at 11:19 AM
    I've started investing small amount over last 8 months in following funds (ISA wrapper)
    I've looked thorough this forum and taken advice as well. It's great to have so many experts on this forum who are selflessly giving opinion/expert advice.
    This is my small portfolio :
    Please let me know if I need to do any changes. I'm in for long term (20 + years)

    1. Vanguard FTSE Global all cap (35%)
    2. Legg Mason Japan (10%)
    3. Jupiter India ( 5% )
    4. Vanguard LS 80 (50%)
    5. (thinking to stop LS 80 and change to LS20 for bonds at annual review)

    Regards
    Andy
Page 1
    • AlanP
    • By AlanP 7th Jan 18, 1:25 PM
    • 1,204 Posts
    • 866 Thanks
    AlanP
    • #2
    • 7th Jan 18, 1:25 PM
    • #2
    • 7th Jan 18, 1:25 PM
    Given 20 year time frame I wouldn't want 80% of 50% in bonds through vls20 as that would be 40% of your investment.

    60/40 is a good rule of thumb but seems very cautious when looking at 20+ years.

    I'd suggest no more than 20% overall in vls20 giving you 16% bonds, or even 10% for now and up it slowly to 20% over 5-10 years.

    Balance could go into smaller companies or property or infrastructure maybe to diversify away from what is a predominantly large cap portfolio.

    What about other Ems besides India?
    • ColdIron
    • By ColdIron 7th Jan 18, 1:28 PM
    • 4,260 Posts
    • 5,392 Thanks
    ColdIron
    • #3
    • 7th Jan 18, 1:28 PM
    • #3
    • 7th Jan 18, 1:28 PM
    What are small amounts? For less than a five figure sum there is little point in constructing a portfolio and you would likely be better served with a single multi-asset fund
    • andy001
    • By andy001 7th Jan 18, 1:48 PM
    • 42 Posts
    • 17 Thanks
    andy001
    • #4
    • 7th Jan 18, 1:48 PM
    • #4
    • 7th Jan 18, 1:48 PM
    AlanP
    Thanks for the advice.
    ColdIron : It's around 4k over last 8months. I had some savings which I put in as lumps. Now I'm investing 300 p.m.?
    Would you advise just to have a single fund as it's a small amount? Which fund would that be?
    Thanks
    Andy
    • ColdIron
    • By ColdIron 7th Jan 18, 2:09 PM
    • 4,260 Posts
    • 5,392 Thanks
    ColdIron
    • #5
    • 7th Jan 18, 2:09 PM
    • #5
    • 7th Jan 18, 2:09 PM
    Would you advise just to have a single fund as it's a small amount? Which fund would that be?
    Originally posted by andy001
    Yes

    Consider your India fund at 5% or 200. Even if it made 10% and all the others did nothing, that's only 20 or several coffees. The trick at this stage is not so much the detail of what you are invested in it's that you are invested at all and choosing one professionally managed fund would be better than a collection of unstructured individual holdings that you can chop or change as the mood takes you

    As for which fund, you've already come across the Lifestrategy range, there are many others but to be honest even this won't make much difference at this stage

    It's not so much fun I know, but good investing is often boring
    • bostonerimus
    • By bostonerimus 7th Jan 18, 2:15 PM
    • 1,940 Posts
    • 1,280 Thanks
    bostonerimus
    • #6
    • 7th Jan 18, 2:15 PM
    • #6
    • 7th Jan 18, 2:15 PM
    Given 20 year time frame I wouldn't want 80% of 50% in bonds through vls20 as that would be 40% of your investment.

    60/40 is a good rule of thumb but seems very cautious when looking at 20+ years.

    I'd suggest no more than 20% overall in vls20 giving you 16% bonds, or even 10% for now and up it slowly to 20% over 5-10 years.

    Balance could go into smaller companies or property or infrastructure maybe to diversify away from what is a predominantly large cap portfolio.

    What about other Ems besides India?
    Originally posted by AlanP
    The current bull market and the prospect of rising interest rates depressing bond fund prices certainly makes equities look attractive if you look back over the last 5 years. However, P/E ratios are high in some places and there are signs of headwinds in markets such as China. Historically a 60/40 portfolio has worked well and for someone with a moderate appetite for risk I see no reason to dissuade them from it. Overweighting sectors like small cap or emerging markets will probably lead to greater portfolio volatility and might produce higher returns than a cap weighted approach, but then again it might not.
    Misanthrope in search of similar for mutual loathing
    • ValiantSon
    • By ValiantSon 7th Jan 18, 6:50 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    • #7
    • 7th Jan 18, 6:50 PM
    • #7
    • 7th Jan 18, 6:50 PM
    I agree with ColdIron, and as you are already invested with Vanguard LifeStrategy then it isn't a silly idea to stick with that range of funds. I'd go with either VLS60 or VLS80 depending upon your attitude to risk.

    While we're on the subject, if you do decide to put all of your investment into VLS then you would probably be wise to hold your investments directly through Vanguard's own platform over the next few years. The fees are about as cheap as you will possibly find - 0.15% platform fee plus 0.22% OCF for the fund, so 0.37% total cost. There is nobody who will beat this on the kind of sums you currently have invested (or are likely to have invested - using your figures - for quite some time).

    Which platform are you currently using? Depending on the platform you currently use the easiest thing to do would be to sell the other funds within your current ISA and buy the new Vanguard funds there too, unless you will pay trading fees on the new purchases, and then transfer your ISA to Vanguard (thus saving on time out of the market). Depending on the exit costs from your current platform, however, it might be cheaper to sell all of your funds and close your account and then open a new ISA with Vanguard. If you'll pay trading fees on purchasing VLS in your current ISA then I'd not bother doing that and wait until you have the Vanguard ISA open and then use the cash realised to buy the new VLS funds there (as there are no trading fees with Vanguard).
    Last edited by ValiantSon; 07-01-2018 at 6:53 PM.
    • AlanP
    • By AlanP 7th Jan 18, 9:51 PM
    • 1,204 Posts
    • 866 Thanks
    AlanP
    • #8
    • 7th Jan 18, 9:51 PM
    • #8
    • 7th Jan 18, 9:51 PM
    I'm in the opposite camp. If you are interest in having a more direct and active role with your investments and portfolio having a range of funds even across a smallish pot is fine as long as each trade isn't costing you.

    It is a chance to see the impact on overall asset allocation and overall return of small changes and learn whilst the stakes are small.

    If your Japan fund does go up by 10% and others standstill that is 20 in your pot that wouldn't otherwise be there. It might be an awful hourly rate over a year of looking on here and on trustnet and reading up on stuff but so what if you are interested in it?
    • andy001
    • By andy001 9th Jan 18, 7:01 AM
    • 42 Posts
    • 17 Thanks
    andy001
    • #9
    • 9th Jan 18, 7:01 AM
    • #9
    • 9th Jan 18, 7:01 AM
    ValiantSon
    I'm investing through Charles stanley direct. Their rates I think are lower than directly buying from Vanguard
    AlanP- thanks.
    • ColdIron
    • By ColdIron 9th Jan 18, 9:07 AM
    • 4,260 Posts
    • 5,392 Thanks
    ColdIron
    If you only use Vanguard products then Vanguard Investor will charge just 0.15%. Charles Stanley Direct charges 0.25% but will give you access to a wider range of products
    • ValiantSon
    • By ValiantSon 9th Jan 18, 8:55 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    ValiantSon
    I'm investing through Charles stanley direct. Their rates I think are lower than directly buying from Vanguard
    AlanP- thanks.
    Originally posted by andy001
    Charles Stanley Direct are definitely not cheaper than Vanguard. Charles Stanley charge 0.25% platform fee, but Vanguard only charge 0.15%. Vanguard are the cheaper option if only buying Vanguard funds.

    Charles Stanley charge a 10 exit fee per holding, so if you followed the strategy I outlined above then it would cost you 10 to move your ISA if you switched everything to the Vanguard fund. It would coat you nothing if you sold everything in Charles Stanley, closed the account and bought the new fund through Vanguard. You've probably got enough of your ISA allowance left this year (depending on just how small your investments are - under 10,000 and you're fine) to open a new ISA and reinvest.
    Last edited by ValiantSon; 09-01-2018 at 9:00 PM.
    • Alexland
    • By Alexland 9th Jan 18, 9:18 PM
    • 2,573 Posts
    • 1,955 Thanks
    Alexland
    Charles Stanley Direct are definitely not cheaper than Vanguard. Charles Stanley charge 0.25% platform fee, but Vanguard only charge 0.15%. Vanguard are the cheaper option if only buying Vanguard funds.

    Charles Stanley charge a 10 exit fee per holding, so if you followed the strategy I outlined above then it would cost you 10 to move your ISA if you switched everything to the Vanguard fund. It would coat you nothing if you sold everything in Charles Stanley, closed the account and bought the new fund through Vanguard. You've probably got enough of your ISA allowance left this year (depending on just how small your investments are - under 10,000 and you're fine) to open a new ISA and reinvest.
    Originally posted by ValiantSon
    I assume you mean sell the assets and initiate a transfer with Vangaurd within the S&S ISA wrapper. If the OP closes their S&S ISA they will not be able to open or contribute to another one this tax year.

    Alex
    • ValiantSon
    • By ValiantSon 9th Jan 18, 9:48 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    I assume you mean sell the assets and initiate a transfer with Vangaurd within the S&S ISA wrapper. If the OP closes their S&S ISA they will not be able to open or contribute to another one this tax year.

    Alex
    Originally posted by Alexland
    Yes that is what I meant. Sorry, I don't think my post was a clear as it should have been. My other suggestion was about opening a new ISA with Vanguard in the new tax year and selling the funds with Charles Stanley and reinvesting the money realised in the new Vanguard ISA, but for the sake of 10 the transfer of the ISA makes more sense, especially when combined with the lower platform cost.

    I've just re-read my post and seen that I said something about this year's ISA allowance which muddies the waters (and for no good reason). I apologise to the OP if it was confusing.

    I hope this is making sense.
    Last edited by ValiantSon; 09-01-2018 at 9:50 PM.
    • andy001
    • By andy001 10th Jan 18, 6:29 PM
    • 42 Posts
    • 17 Thanks
    andy001
    Thanks a lot all of you!
    • andy001
    • By andy001 4th Feb 18, 9:43 AM
    • 42 Posts
    • 17 Thanks
    andy001
    Update:
    I've swapped my VLS 80 with VLS 60 in my portfolio as I'm comfortable with this.
    I'm planning to buy VLS from April directly from Vanguard as I compared rates and as some of you stated it would be cheaper to buy direct.
    Thanks for your help.
    • Alexland
    • By Alexland 4th Feb 18, 10:41 AM
    • 2,573 Posts
    • 1,955 Thanks
    Alexland
    I am also running at a lower investment risk this year. You should still do well with VLS60.
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