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