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  • FIRST POST
    • readysteady
    • By readysteady 9th May 18, 7:48 PM
    • 2Posts
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    readysteady
    Funds top-up
    • #1
    • 9th May 18, 7:48 PM
    Funds top-up 9th May 18 at 7:48 PM
    Evening guys,
    I've recently opened a S&S ISA and a SIPP with HL and after some research I've invested in a total of 8 funds.
    Now that I'm happy with the spread of funds that I have, I want to start investing into these on a monthly basis (800).

    Is there are known technique on how to spread the money each month? My train of though is currently as below:

    1. Spread equally between all funds regardless of the performance of the individual fund
    2. Invest heavier in the funds which are performing the worst (with the mindset that these are in essence on sale if they are negative %)

    Very grateful of any help on offer
Page 1
    • ValiantSon
    • By ValiantSon 9th May 18, 8:18 PM
    • 2,537 Posts
    • 2,509 Thanks
    ValiantSon
    • #2
    • 9th May 18, 8:18 PM
    • #2
    • 9th May 18, 8:18 PM
    What made you invest in these specific funds?

    800 per month is not a large amount and to be splitting it across eight different funds seems unnecessary.
    • dunstonh
    • By dunstonh 9th May 18, 8:27 PM
    • 94,498 Posts
    • 62,447 Thanks
    dunstonh
    • #3
    • 9th May 18, 8:27 PM
    • #3
    • 9th May 18, 8:27 PM
    I've recently opened a S&S ISA and a SIPP with HL and after some research I've invested in a total of 8 funds.
    There are at least 10 main sectors. So, what have you left out?

    Is there are known technique on how to spread the money each month?
    There are a number of strategies. The one to avoid is random hit and hope.

    1. Spread equally between all funds regardless of the performance of the individual fund
    Thats a bit random.

    2. Invest heavier in the funds which are performing the worst (with the mindset that these are in essence on sale if they are negative %)
    Looking for value is a viable strategy. However, are you able to tell why a fund is performing "worst"? Is it because you are comparing fixed interest with emerging markets? Is it because its an awful fund that you know is just never going to do better? Is it because its a low risk fund in its particular sector and will never set the world on fire but sits comfortably where it is because that is what its investors are looking for?

    Building a portfolio is something you tend to do once you get to 100k (some may start a bit earlier, say 50k). Dont you think with just 800 that its a bit early?

    For example if your Japan sector has a 3% allocation then that is just 24 of 800. Is it worth all that effort?
    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.
    • ColdIron
    • By ColdIron 9th May 18, 8:49 PM
    • 4,552 Posts
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    ColdIron
    • #4
    • 9th May 18, 8:49 PM
    • #4
    • 9th May 18, 8:49 PM
    Opinion varies. Ride your winners or enforce your original allocation, a sort of ongoing rebalancing. Option 2 would satisfy my inner bottom retention but then rebalancing once a year when the differences become more magnified may be more beneficial and cuts out the usual short time noise. If you have mixed assets you could spend a lot of time making your non equity portion keep up which can be discouraging. Until it matters and then it won't. At 800 per month the difference isn't likely to be decisive so I'd go with whatever you can rationalise in your head and makes you sleep more soundly
    • IanManc
    • By IanManc 9th May 18, 8:58 PM
    • 648 Posts
    • 1,150 Thanks
    IanManc
    • #5
    • 9th May 18, 8:58 PM
    • #5
    • 9th May 18, 8:58 PM
    Option 2 would satisfy my inner bottom retention
    Originally posted by ColdIron
    *faints*

    • readysteady
    • By readysteady 9th May 18, 9:27 PM
    • 2 Posts
    • 0 Thanks
    readysteady
    • #6
    • 9th May 18, 9:27 PM
    • #6
    • 9th May 18, 9:27 PM
    Building a portfolio is something you tend to do once you get to 100k (some may start a bit earlier, say 50k). Dont you think with just 800 that its a bit early?
    So my current balance is just over 40k, I'm a little disheartened that you think 800 a month isn't significant. I'm also therefore a little confused as to why HL allow you to set up regular monthly investments at the 25 level.

    So if buying a spread of funds to create a portfolio isn't your recommendation until I have pot of 50-100k, what would you suggest I do with my 800 a month investment each month?

    I'm a little worried that I've completely misunderstood how all this works, I'm 3-4 months in and I thought I'd started to understand it a little.

    Thanks in advance
    • ValiantSon
    • By ValiantSon 9th May 18, 9:32 PM
    • 2,537 Posts
    • 2,509 Thanks
    ValiantSon
    • #7
    • 9th May 18, 9:32 PM
    • #7
    • 9th May 18, 9:32 PM
    So my current balance is just over 40k, I'm a little disheartened that you think 800 a month isn't significant. I'm also therefore a little confused as to why HL allow you to set up regular monthly investments at the 25 level.

    So if buying a spread of funds to create a portfolio isn't your recommendation until I have pot of 50-100k, what would you suggest I do with my 800 a month investment each month?

    I'm a little worried that I've completely misunderstood how all this works, I'm 3-4 months in and I thought I'd started to understand it a little.

    Thanks in advance
    Originally posted by readysteady
    Invest in a single multi asset fund like Vanguard LifeStrategy; HSBC Global Strategy; or Blackrock Consensus.
    • dunstonh
    • By dunstonh 9th May 18, 9:36 PM
    • 94,498 Posts
    • 62,447 Thanks
    dunstonh
    • #8
    • 9th May 18, 9:36 PM
    • #8
    • 9th May 18, 9:36 PM
    So my current balance is just over 40k, I'm a little disheartened that you think 800 a month isn't significant. I'm also therefore a little confused as to why HL allow you to set up regular monthly investments at the 25 level.
    Because they earn a lot of money from people that dont know what they are doing.

    So if buying a spread of funds to create a portfolio isn't your recommendation until I have pot of 50-100k, what would you suggest I do with my 800 a month investment each month?
    If you dont know what you are doing then stick with a multi-asset fund or two.

    I'm a little worried that I've completely misunderstood how all this works, I'm 3-4 months in and I thought I'd started to understand it a little.
    What strategy are you following (as your posts suggest there isnt one)?
    What target volatility range are you looking at? (how are you measuring risk)
    Last edited by dunstonh; 09-05-2018 at 10:23 PM.
    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.
    • baj25
    • By baj25 9th May 18, 9:45 PM
    • 37 Posts
    • 11 Thanks
    baj25
    • #9
    • 9th May 18, 9:45 PM
    • #9
    • 9th May 18, 9:45 PM
    You didn't mention 40k already invested until last post, people probably thought you were only in low 1000s. If 800 feels significant to you, then it is. There is some genuinely good advice on here amongst the noise, bear with it.
    • Filo25
    • By Filo25 9th May 18, 11:06 PM
    • 1,633 Posts
    • 2,406 Thanks
    Filo25
    So my current balance is just over 40k, I'm a little disheartened that you think 800 a month isn't significant. I'm also therefore a little confused as to why HL allow you to set up regular monthly investments at the 25 level.

    So if buying a spread of funds to create a portfolio isn't your recommendation until I have pot of 50-100k, what would you suggest I do with my 800 a month investment each month?

    I'm a little worried that I've completely misunderstood how all this works, I'm 3-4 months in and I thought I'd started to understand it a little.

    Thanks in advance
    Originally posted by readysteady
    Personally I wouldn't worry too much about having 8 funds to split that kind of amount between, assuming you are looking at funds rather than investment trusts there aren't going to be any additional costs associated with holding 8 funds compared to holding just 1 on HL anyway

    Yes some would say it is overkill but if you actually enjoy the process of investment and are learning from it, I don't see any real issue with having a few extra funds given HL have aren't charging you any fees per trade/holding.

    I have what most would consider far too many funds for the amount I have invested as well, and am in the process of slowly rationalising the number of funds as I become more confident in what I am doing.

    Basically what I am saying is for me as long as you don't mind a bit more admin, it isn't a big problem to have more funds, in any case it is a learning process for all of us relative noobs anyway, you will no doubt amend your portfolio as time goes on and you become more experienced
    • bostonerimus
    • By bostonerimus 9th May 18, 11:38 PM
    • 2,258 Posts
    • 1,561 Thanks
    bostonerimus
    Evening guys,
    I've recently opened a S&S ISA and a SIPP with HL and after some research I've invested in a total of 8 funds.
    Now that I'm happy with the spread of funds that I have, I want to start investing into these on a monthly basis (800).

    Is there are known technique on how to spread the money each month? My train of though is currently as below:

    1. Spread equally between all funds regardless of the performance of the individual fund
    2. Invest heavier in the funds which are performing the worst (with the mindset that these are in essence on sale if they are negative %)

    Very grateful of any help on offer
    Originally posted by readysteady
    Your post worries me. You seem to have invested without a fully developed plan. It's good that you are asking though. To have a hope of giving some useful advice can you tell us why you are investing and your funds and or asset allocation.
    Misanthrope in search of similar for mutual loathing
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