Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
How to build a diverse portfolio?
+ Reply to discussion
Options
Thom
Posted: 21 September 2010 23:29:32(UTC)
#1

Joined: 21/09/2010(UTC)
Posts: 9
Dear Readers,

I am new to Citywire and relatively new to investing (although I have always held a keen interest). My question is simple; How can I build a diverse portfolio thats right for me?

My aim from these investments is to build enough capital for a deposit on a home at some point after university. I am currently an Economics student. My portfolio already consists of emerging markets equity and strategic bond funds as well as a financial sector stock.

I would greatly appreciate any help or advice for building a portfolio with this sort of aim. In particular, criteria to consider and whether I need to be risk averse or risk loving (My personality fits the latter!).

Regards,

Thom
Back to top Quote
sam walker
Posted: 22 September 2010 08:46:24(UTC)
#2

Joined: 21/04/2010(UTC)
Posts: 13
What about a Fund of Funds such as one of the John Chatfeild Roberts Jupiter Funds?

Highly rated and good from a diversification point of view as it holds multiple asset classes and due to the FoF model, a large number of holdings of individual shares/bonds/ETFs etc
Back to top Quote
Thom
Posted: 22 September 2010 08:56:39(UTC)
#3

Joined: 21/09/2010(UTC)
Posts: 9
I had been looking in the multi-asset direction, and thank you for your advice and tip. My only issue with going into a Jupiter fund is the higher TERs. I think I will have a browse around the Fund of Funds sector. Thank you again.
Back to top Quote
sam walker
Posted: 22 September 2010 09:03:48(UTC)
#4

Joined: 21/04/2010(UTC)
Posts: 13
I think if using a FoF for diversification it's essential to look beyond the TER and see how much above the benchmark it's performed?

No problem paying 2% premium over an ETF/Passive fund if it regularly outperforms by 2%.

Also, look at the ratio, I believe Jupiter Merlin funds have quite a high Alpha so add value over and above the benchmark.
Back to top Quote
Thom
Posted: 22 September 2010 09:16:36(UTC)
#5

Joined: 21/09/2010(UTC)
Posts: 9
Having just had a quick browse I think your probably right. It would be interesting to see if anyone else comments with similar fund of funds advice. Thank you Sam.
Back to top Quote
Rich Harris (Citywire)
Posted: 22 September 2010 09:38:59(UTC)
#6

Joined: 08/06/2010(UTC)
Posts: 126
As a starting point Jupiter Merlin Growth is a consistent outperformer in global equities. It is a star pick in Citywire Selection - the guide to our best investment ideas.

http://www.citywire.co.u.../content.aspx?ID=385215

It is a fund of fund and by monitoring it closely - and Citywire of course - you will also be able to get a feel for the underlying funds, which will stand you in good stead as you learn more on the subject matter.

You already have expsoure to emerging markets and Asia Pacifc could also sit nicely. Fidelity South East Asia is one of our more aggressive picks in Citywire Selection. Note that there is already exposure to the region in the Jupiter Merlin Growth fund.

You can do more research on Citywire Selection here:

www.citywire.co.uk/money/selection

Saving monthly will also give you a smoother ride amid the market volatility and you also benefit from pound cost averaging. Arranging this through a fund supermarket is simple and the best way to avoid initial charges.

Jonathan Miller
Head of Research

P.S. This is of course not an investment recommendation and investments can go up as well as down - all the usual rules apply!
Back to top Quote
Thom
Posted: 22 September 2010 09:43:16(UTC)
#7

Joined: 21/09/2010(UTC)
Posts: 9
Having just had a quick browse I think your probably right. It would be interesting to see if anyone else comments with similar fund of funds advice. Thank you Sam.
Back to top Quote
Thom
Posted: 22 September 2010 10:11:22(UTC)
#8

Joined: 21/09/2010(UTC)
Posts: 9
Thanks for your research advice Johnathan. I shall take a look at the Citywire selection. As it happens I already have a fund supermarket account and save into my First State Emerging Markets Ldrs fund. Once again thank you and I shall continue to embark upon my own research.

Thom
Back to top Quote
Map
Posted: 22 September 2010 17:00:21(UTC)
#10

Joined: 13/01/2009(UTC)
Posts: 2
.
Back to top Quote
Map
Posted: 22 September 2010 17:00:38(UTC)
#11

Joined: 13/01/2009(UTC)
Posts: 2
If you are looking for lower risk returns from a Multi-Asset approach - Have a look at Standard Life GARS, IM Distinction Diversified Real Return, Newton Real Return, CF Ruffer Absolute Return. They are all doing the job
Back to top Quote
2 Pages12Next page
+ Reply to discussion

Markets

Other markets