Review of Portfolio Structure
Posted: June 10th, 2024, 6:26 pm
Hi,
I have put together an initial strategy and would like some advice on if I am on the right tracks:
LARGE & MID 42% (Emerging 6%)
SMALL CAP 6%
REIT 9%
BONDS 6%
CASH (ISA) 19%
CASH 18%
TOTAL 100%
My rationale is as follows:
1) I have chosen HSBC All World Acc (75%) and Fidelity Index World P (25%). The 75/25 split means that I have 6% in emerging markets, not sure if this is enough.
2) Because I have no exposure to small cap I was thinking of buying a small cap fund, but also thinking 6% is not worth it. However, I am not sure have the stomach to put any more GBP into it when I am unsure of how risky it is? Also, are there any recommendations for a small cap fund?
3) I was looking to put around 9% into a REIT as a defensive strategy but looking at the results of a few REIT's (from Smarter Investing Book), I am not sure this is a good idea as the returns were poor?
Incidentally, I have £80k of Grainger Plc shares outside of the above that I was given, therefore would this act as a natural defensive asset and would I be better topping up my emerging and small cap to 10%?
4) Bonds - I am aware this is not very much percentage but do hold 19% in cash ISA's that do not mature until next year.
5) Cash ISA's - these mature next year and upon maturity I will rebalance my portfolio with the money from these.
6) I need to hold this much cash to live on and to pay the annual chunk off my mortgage which is due soon.
As always, thanks for any advice.
Helen
I have put together an initial strategy and would like some advice on if I am on the right tracks:
LARGE & MID 42% (Emerging 6%)
SMALL CAP 6%
REIT 9%
BONDS 6%
CASH (ISA) 19%
CASH 18%
TOTAL 100%
My rationale is as follows:
1) I have chosen HSBC All World Acc (75%) and Fidelity Index World P (25%). The 75/25 split means that I have 6% in emerging markets, not sure if this is enough.
2) Because I have no exposure to small cap I was thinking of buying a small cap fund, but also thinking 6% is not worth it. However, I am not sure have the stomach to put any more GBP into it when I am unsure of how risky it is? Also, are there any recommendations for a small cap fund?
3) I was looking to put around 9% into a REIT as a defensive strategy but looking at the results of a few REIT's (from Smarter Investing Book), I am not sure this is a good idea as the returns were poor?
Incidentally, I have £80k of Grainger Plc shares outside of the above that I was given, therefore would this act as a natural defensive asset and would I be better topping up my emerging and small cap to 10%?
4) Bonds - I am aware this is not very much percentage but do hold 19% in cash ISA's that do not mature until next year.
5) Cash ISA's - these mature next year and upon maturity I will rebalance my portfolio with the money from these.
6) I need to hold this much cash to live on and to pay the annual chunk off my mortgage which is due soon.
As always, thanks for any advice.
Helen