If I had 40k to invest in funds\stocks I would put 1-2k in 20-40 different things over time.
Diversifying a small portfolio such as this into 20-40 items will result in portfolio that will constantly under perform!!! The point of diminishing returns has long been surpassed.
Jim
You have put 40k into just 3 different funds\etfs which puts you at risk if even just one of them doesn't perform and that is what has happened to you.
Hi,
In February 2007 I made an investment of 10,000 euro in an ISEQ ETF.
Today, it is worth 3,060 euro.
I don't need the cash now but have thinking would I be better off cashing this in and investing it elsewhere.
For the last few months, I've been reading posts about investing in Gold and Silver, but would have to admit I'm not confident enough to take the plunge, due to lack of knowledge.
My current situation is as follows.
Married with 1 child.
Mortgage: 70k
My Savings (Northern Rock): 39,239
Wife's Savings (NIB): 40k
Global REIT Property fund: Initial Investment = 10k, Current Value = 5.7k
Quinn Life Freeway Funds: Total Contributions = 20k, Current Value = 17.75k
Parent Saver for child: 1800 euro
I would imagine that this puts me in a position to take some measured risks as I can minimise any gamble I take.
I think I know what you mean, but my rationale (perhaps flawed) was
1. The ISEQ ETF 20 is effectively a basket of 20 Irish companies.
2. The Quinn Life Freeway is 60% Europe, 20% Irish, 10% China, 5% Latin America, 5% Emerging Markets.
3. The Global REIT Property Fund focuses on Real Estate in countries like Hong Kong, Australia, USA and Japan.
Does this not introduce a degree of diversification, particularly the ISEQ ETF 20 and also having a 60% exposure to the Europe market?
I think I might reduce my monthly contributions to Quinn and invest elsewhere.
WGTThe ISEQ ETF has the top 20 shares in equal amounts so it should be reasonably well diversified.
You frequently suggest that people put 10% of their portfolio in gold.
Sincerest apologies. I was mixing you up with your employer who publicly recommends this figure.Regarding your comment about Gold, I would be interested to see where I have frequently suggested that people should invest 10% in gold. For the avoidance of doubt our Private client advisory portfolios have had a maximum allocation of 5% to Gold since Jan 2008. I would therefore be delighted if everyone reading this would please search askaboutmoney.com and please confirm exactly the number of times I have recommended putting 10% of a portfolio in Gold.
A quick Google search finds the following Sunday Tribune article:It's very important that you look at gold as part of a diversified strategy. A small component of a spread of assets - 3% to 10% might be productive for people to have in terms of a good allocation. Anything more than that and you need to know what you are doing and you need to get fee-only advice
and later in the same articleThere is an old Wall Street adage: you put 10% of your portfolio in gold and hope to God it doesn't work. It's a message that Stephen Flood, director of gold investment specialists Goldcore, is happy to endorse – especially in uncertain times. As the prices of traditional investments remain volatile, gold has absorbed unprecedented cash flows, driving the price to nominal records.
I had not seen this article before or heard the RTE interview, so I suspect that I have heard them saying this elsewhere as well.Why not put 5%-10% of your money into a firm form of money that can't be debased," said Flood. "I'd rather bank it and not get a return, but know it's there. I don't think that's crazy. I think it makes a lot of sense.
Please explain....thats a big claim.
I think I know what you mean, but my rationale (perhaps flawed) was
1. The ISEQ ETF 20 is effectively a basket of 20 Irish companies.
2. The Quinn Life Freeway is 60% Europe, 20% Irish, 10% China, 5% Latin America, 5% Emerging Markets.
3. The Global REIT Property Fund focuses on Real Estate in countries like Hong Kong, Australia, USA and Japan.
Does this not introduce a degree of diversification, particularly the ISEQ ETF 20 and also having a 60% exposure to the Europe market?
I think I might reduce my monthly contributions to Quinn and invest elsewhere.
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