All About Asset Classes

asset classes

2 Responses

  1. Martin says:

    Great article Mike. For investors starting out with a small pot of less than £5k or those investing for children with say a £1K starting point I recently read an article in the FT Money section suggesting a Global Tracking fund or ETF would be a good start in order to maximise the spread of assets whilst keeping costs down. Would you agree with this approach? What sort of size pot would you need to start implementing the above?

    • Mike Rawson Mike Rawson says:

      Hi Martin,

      I think with £1K you should definitely be looking at something like a global tracker.

      A fully diversified portfolio would need anything from half a dozen to 50 underlying investments, so the size of pot needed is in the £10K to £100K range.

      I like to think of it as a spiral – you start in the centre with the plain vanilla stuff, and as you keep adding money to your retirement pot through the years, you move on to more exotic stuff.

      Since you invested there earlier, you should end up with more cash in the core areas by the time you get to retirement.

      Mike

Leave a Reply

Your email address will not be published. Required fields are marked *

All About Asset Classes

by Mike Rawson time to read: 10 min
More in Assets
Peer-to-peer lending
Peer-to-peer lending – time to build a portfolio?

We look at the growth of the peer-to-peer lending market and the threats that it faces. Is it time to...

Close