The Lemon Fool

Hello all

Does anyone know how to / where to find information on generally approved asset allocations and recommended asset classes?

Thanks, OLTB.

OLTB wrote:Hello all

Does anyone know how to / where to find information on generally approved asset allocations and recommended asset classes?

Thanks, OLTB.

I suspect much will be down to each individual and therefore there will be no 'right' or 'wrong'. I am moving gradually towards a more global allocation via Vanguard Lifestrategy 60 but I also have several global investment trusts such as Law Debenture and Scottish Mortgage.

There's an article on the diy investor site which may help - 'Asset Allocation Revisited'

Also a good article on Monevator last week about volatility for various assets

(sorry not authorised to provide links??)

The old wisdom was to own your age in bonds IIRC and the rest in equities.

I have kept a record of this from somewhere on the internet:



Of course this will depend on your appetite for risk etc.

You could also take a look at 'Smarter Investing' by Tim Hale that suggests some allocations for various scenarios and timescales. I cannot post links but google retirementinvestingtoday.com further-uk-equity-diversification.html

If it helps then this is my target allocation:

Equities 80%
Level 1 UK 30%
International 30%
Emerging 10%
Smaller Companies 10%

Investment Cash and Bonds 20%
P2P 5%
High interest accounts 10%
Bonds 5%

OLTB wrote:Hello all

Does anyone know how to / where to find information on generally approved asset allocations and recommended asset classes?

Thanks, OLTB.

"The intelligent Asset Allocator" by William Bernstein is also worth a read.

Thanks all - I think I'll take a look at Tim Hale's book first. Not only does it seem to fit what I'm after, I notice it's published by Pearson so hopefully in my own little way I'll help the share price improve for my HYP colleagues...

Thanks, OLTB

OLTB wrote:Thanks all - I think I'll take a look at Tim Hale's book first. Not only does it seem to fit what I'm after, I notice it's published by Pearson so hopefully in my own little way I'll help the share price improve for my HYP colleagues...

Thanks, OLTB

Once you have decided on allocations then Monevator is a great site to find the least expensive passive funds as the expenses are regularly updated.

monevator.com low cost index trackers that will save you money.

justetf and ishares also have asset allocation tools. monevator.com the-best-free-asset-allocation-tool/

What I would really find useful would be a website where you could directly compare costs between ETF and fund providers for each geographical and asset attribute.