Index Fund and Asset Allocation advice for 22 year-old based in the UK (£10,000)

Investing

Hi

This is my first post. I have been studying finance for some time and have decided that i wish to put £10,000 into index funds. I have chosen this approach as i have concluded that the chances of beating the market with individual stocks is beyond my scope of abilities.

I am 22F, based in the UK. I am in university studying Supply Chain Management, so i believe i will have a high earning career in front of me. I should also note that i have a high risk tolerance and wish to prioritise capital appreciation. I do not wish to change my allocation from now until retirement - i'm looking for high-risk/growth set it and forget it strategy.

I will be investing within a stocks and shares ISA (where gains will be tax free).

Please review my choice of funds and advise me on allocation and exposure to the economies i have selected. I don't wish to include property in this, as i plan on buying some rentals and getting exposure that way, and bonds don't deliver enough growth for my goals.

Thank you!

HSBC AMERICAN INDEX (charges 0.06%) - Tracks S&P 500.

Allocation: 20%

i see this in the majority of finance books and know it is as safe as equities get.

HSBC FTSE 250 INDEX (charges 0.08%) -

Allocation: 25%

This is the best performing UK index and contains Mid-caps which generate good growth and are more secure than small caps.

ISHARES JAPAN EQUITY INDEX (charges 0.08%) -

Allocation: 10%

some sources say this market is under-valued due to the 'lost decade'. I know Japan companies are renowned for innovation and quality.

VANGUARD PACIFIC EX-JAPAN STOCK INDEX (charges 0.16%) - Tracks companies in Australia, New Zealand, Singapore

Allocation: 10%

We all know how disruptive Singapore has been for this region and has seen strong growth, alongside the other pacific countries.

VANGUARD EMERGING MARKETS STOCK INDEX (charges 0.23%)

Allocation: 15%

Home to the majority of the population and have became low cost labour/source countries and will continue to increase their living standards, giving rise to growth.

VANGUARD GLOBAL SMALL-CAP INDEX (charges 0.29%) -

Allocation: 20%

High risk and growth, which i am fine with due to time frame and tolerance.

Posted Dec 1, 2019, 1:53 PM UTC

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