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    • leechal
    • By leechal 7th Mar 18, 3:26 PM
    • 2Posts
    • 1Thanks
    Pension changing my default investment aviva
    • #1
    • 7th Mar 18, 3:26 PM
    Pension changing my default investment aviva 7th Mar 18 at 3:26 PM

    I currently have a workplace pension scheme 6% from my self 10% from my employer. I am 31 and have been in the pension plan for 6 years.

    I am curently investing 100% in the Aviva AP Mercer Growth / Balanced Risk FP Acc as this was chosen for me.

    I am looking to change 100% over to Aviva Pension BlackRock (50:50) Global Equity Index Pension Fund.

    After quick conversation with a FA. Its a slightly higher risk.

    But is this my best option? should i diversify more and not put 100% into one place? i was going to stay with black rock for the early part of my pention then go back to mercer as it had the lifetime plan.

    I have many options available... greatly appreciatted if anyone can advise that knows aviva and my options....

    Thankyou Lee
Page 1
    • Brynsam
    • By Brynsam 7th Mar 18, 3:54 PM
    • 931 Posts
    • 605 Thanks
    • #2
    • 7th Mar 18, 3:54 PM
    • #2
    • 7th Mar 18, 3:54 PM
    Was your current fund 'chosen' for you (i.e. selected after you took advice), or simply a default fund because you didn't select other funds? There's a difference!

    As for your 'best' option, much depends on your attitude to risk. Nobody has a crystal ball to predict how funds will perform - the only certainty is the charges on a particular fund, not fund performance. High charges don't guarantee good performance, but a really excellent return can make the charges worthwhile (hindsight being a wonderful thing).

    Sorry this isn't the 'what should I do' answer you were perhaps hoping for, but there isn't a right answer.
    • dunstonh
    • By dunstonh 7th Mar 18, 3:56 PM
    • 92,593 Posts
    • 59,910 Thanks
    • #3
    • 7th Mar 18, 3:56 PM
    • #3
    • 7th Mar 18, 3:56 PM
    should i diversify more and not put 100% into one place?
    You are not putting it in one place with that fund. It is effectively a multi-asset fund that handles diversification within it.

    It isnt the number of funds that matters. It is where the funds that invest that matters.

    e.g. If you had 10 funds all investing in UK equity vs 1 multi-asset fund, then the single multi-asset fund is more diverse than the 10 funds.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Linton
    • By Linton 7th Mar 18, 4:02 PM
    • 9,382 Posts
    • 9,512 Thanks
    • #4
    • 7th Mar 18, 4:02 PM
    • #4
    • 7th Mar 18, 4:02 PM
    Putting all your money in the right 100% equity global fund is fine and at your age could be a sensible thing to do in my view provided you wont panic if it drops say 40% at some time as it may well do.

    50:50 means 50% UK, 50% rest of world. Because it's a fund of index funds it is mainly large companies which in the UK means companies in the FTSE100 index. For various reasons the FTSE100 has been a relatively poor investment over the past 20 years or so and in my view is likely to continue to be so. Therefore I would look for a global fund with a lower UK%.

    I cant find a suitable fund in the Aviva Blackrock list, but perhaps you could invest say 80% in the Aviva Blackrock World Ex UK tracker and 20% in a UK tracker.
    • AnotherJoe
    • By AnotherJoe 7th Mar 18, 4:50 PM
    • 9,394 Posts
    • 10,378 Thanks
    • #5
    • 7th Mar 18, 4:50 PM
    • #5
    • 7th Mar 18, 4:50 PM
    I think someone mentioned this fund the other day, maybe its a common one for advisers to choose.

    50% in the UK, which also means (as said above) 50% in handful of massive companies in a handful of sectors doesn't strike me as the optimum selection looking out over 20 or 30 years (or in fact the next 2 or 3). So, not at all

    Forget "lifetime plans" they are first of all irrelevant until very near when you retire and many, me included, would say they are likely a bad idea at that point as well.
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