Property Fund in a SIPP

[taznuv]

Hello, I'm thinking of starting saving in a SIPP, a modest amount of money as I have another pension as well (I'm 45). Given the uncertanties in stock markets I was thinking of splitting the investment between an equity fund and a UK commercial property fund like Henderson UK Property. But I can't find any advise online on the pro's and con's of this, and suspect therefore it's not a common approach, which may be for a good reason. Any advice would be welcome.

[Ginge R]

Property funds can offer benefits, like any other, but can suffer from closures and liquidity issues. Most baskets of funds will have some exposure to property - is there any reason why you're happy to forego asset class diversity?

[ellroy]

I'd just add to Ginge's great comments that you should also be aware of what's going on under the skin of whichever fund you're buying. Many property funds contain a large amount of property company shares rather than direct bricks and mortar. As a result your correlation to equities is often quite high, which is what you're probably trying to get away from.

[taznuv]

Thank's for the replies, very useful, will do a bit more research before deciding.