Thoughts regarding diversification?
Discussion
A bit of background; I have a Vanguard Lifestyle 80 ISA, which is always maxed out every year and has performed really well (c.12% returns on average over last few years).
This May I will have c.£100k to put into a new GIA, and I just need to work out what funds that should hold. My initial thoughts are that I just go again with the LS80, but is that putting all my eggs in matching baskets? Would it be better to choose something wildly different so that if one's down the other is (hopefully) up, or is the LS80 fund so well diversified anyway that I'm better just sticking with it for both accounts as it generally will be reasonably good overall?
Would appreciate the thoughts of the PH hive mind!
This May I will have c.£100k to put into a new GIA, and I just need to work out what funds that should hold. My initial thoughts are that I just go again with the LS80, but is that putting all my eggs in matching baskets? Would it be better to choose something wildly different so that if one's down the other is (hopefully) up, or is the LS80 fund so well diversified anyway that I'm better just sticking with it for both accounts as it generally will be reasonably good overall?
Would appreciate the thoughts of the PH hive mind!
A lot of answers would depend on your age, risk profile, your intentions regarding what you intend to draw and when etc .
Putting that aside and reflecting what I do . I keep MAINLY the same funds in my ISA and GIA . However, I do if I want o hold more risk, put the ( in theory) risker funds in my ISA as they also tend to have higher gains. Leaving the space for lower risk funds in the GIA
Eg .. UP risk your lifestyle fund to 100 equity in the ISA and for example keep Lifestyle 80 or 60 in your GIA. The balance would depend on size of GIA vs ISA
I don't use any bonds , but keep my money market ( comfort fund ) and a global fund in GIA ....but 100% equity ISA ( mix of a global and UK fund )
Putting that aside and reflecting what I do . I keep MAINLY the same funds in my ISA and GIA . However, I do if I want o hold more risk, put the ( in theory) risker funds in my ISA as they also tend to have higher gains. Leaving the space for lower risk funds in the GIA
Eg .. UP risk your lifestyle fund to 100 equity in the ISA and for example keep Lifestyle 80 or 60 in your GIA. The balance would depend on size of GIA vs ISA
I don't use any bonds , but keep my money market ( comfort fund ) and a global fund in GIA ....but 100% equity ISA ( mix of a global and UK fund )
I have put some money into this one recently:
https://www.trustnet.com/factsheets/O/JXZ0/artemis...
But only a small percentage in comparison to the rest of the portfolio.
https://www.trustnet.com/factsheets/O/JXZ0/artemis...
But only a small percentage in comparison to the rest of the portfolio.
It also depends what proportion of your portfolio the £100k represents and obviously how many years you will still be in the accumulation phase. I always dedicated around 20% to medium to high risk stuff. I should have de risked it by now but I keep getting good years so I end up never doing it which is stupid I know...
You could split the £100k over a selection of funds with varying different risk levels?
You could split the £100k over a selection of funds with varying different risk levels?
Thanks for all the thoughts so far.
Just as a bit more background, the £100k would represent about 10% of my total holdings (mostly made up of pensions and ISAs) so could be played with a bit, but I’d probably be looking at about 5 years before I wanted to stop accumulating, so not looking for anything crazy high risk (I already have a bit of crypto to cover that end of the spectrum!)
Just as a bit more background, the £100k would represent about 10% of my total holdings (mostly made up of pensions and ISAs) so could be played with a bit, but I’d probably be looking at about 5 years before I wanted to stop accumulating, so not looking for anything crazy high risk (I already have a bit of crypto to cover that end of the spectrum!)
If its any help these are my funds (ISA and SIPP)...
Artemis Global Income
Fidelity Global Technology
Artemis UK Select
GS Japan Equity Portfolio Partners
Vanguard Life Strategy 100% Equity
Legal and General Global Technology Index Trust
Legal and General International Index Trust
Fidelity Index World
Man Japan CoreAlpha Equity
Probably too much Tech and US even though Artemis UK and Man Japan have been added recently
Artemis Global Income
Fidelity Global Technology
Artemis UK Select
GS Japan Equity Portfolio Partners
Vanguard Life Strategy 100% Equity
Legal and General Global Technology Index Trust
Legal and General International Index Trust
Fidelity Index World
Man Japan CoreAlpha Equity
Probably too much Tech and US even though Artemis UK and Man Japan have been added recently
Haven't been one for ETF's/Funds til now, but will gradually swap out some stocks into energy & materials etf's through the year. Software is getting hammered and will likely continue to bleed - some areas of tech will do ok, but energy/materials scarcity shd do well for next few years
i use my GIA for longer term holds, so as not to trigger too many CGT events, and look to spin out income from calls or just make use of the margin which builds up as the assets grow.
Isa is for more 'racey' stuff....
i use my GIA for longer term holds, so as not to trigger too many CGT events, and look to spin out income from calls or just make use of the margin which builds up as the assets grow.
Isa is for more 'racey' stuff....
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