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my portfolio into funds and asset allocation help needed!

asked by Joanne Muir posted 1 Years ago at 10:13
Hi everyone,

I'm beginning to invest via funds and have made some very small profit over last few months.

But I'm realising this is quite a complicated area and very wide with thousands of funds avaialable. I'm looking to have a balanced approach to risk but am prepared for around 25% of the portfolio to be a bit more risky.

I'm only putting a % of available funds into investements and the rest is in cash since I'm saving up for a deposit on a property, but given the lending situation at the moment the fund investment will help towards this. So I'm happy to leave the money invested for 3 years or so.

Currently here is my portfolio splits;
Brazil 8%
Commodities 16%
Far East (Excluding Japan) 5%
Emerging Markets 19%
UK Fixed Interest 12%
European Equities 20%
Property 10%
Bonds 10%

I think markets might improve, but really need some help or guidance since i have realised how complicated this all is. My investments into funds arnt large so costs are also an important factor. Current portfolio size/valuation is £22,917 - so I don't expect the big boys to be interested, but any tips from a pro or fellow novice with ideas/experience is appreciated.
Many thanks...
1-2 of 2 Answers
William Passel answered 1 Years ago at 10:49
Hi Joanne,
I'm not an expert but your asset allocation looks fairly overweight in more adventurous areas. But everyones' idea of risk is also different. For example some may say cash is no risk, true to a point but that doesnt take into account inflation. So investing in cash while the sum is protected doesnt mean its not going down in real value. People also use different yard sticks for attitute to risk such as 1-10, but what is a 1? No risk, no risk against inflation, no risk for that investment or as part of your total assets etc.... :)

Will
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Gordon Hewitt answered 1 Years ago at 17:08
Joanne,I am an IFA and I run risk rated portfolios for my clients - average £80k but I have some at £10k+
As mentioned above I find the asset allocation quite aggresive, but then you doo not state how much you are holding in cash, also agree that cash should be making money - presume you have used your cash ISA allowance this year - if not you have until Wednesday/Thursday and then you have another years allowance.
If you would like to forward your individual holdings and your view of your ideal portfolio I would be happy to send you a report which would show you the difference.Also are any of these holdings held in an ISA?
Commnets in this statement should not be construed as advice - it is only generic comment. (sorry but have to cover my back)
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