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diversifying investments
Posted: Fri Feb 26, 2021 1:36 am
by bryanc
thanks to this site-i am going to invest in the ideco,nisa and lump sum for my wife and i..
i will invest in the emaxis-but am presuming its a bad idea to lump all eggs in one basket-can anyone offer other funds which could be used for diversification/risk management of the investments??thanks...
Re: diversifying investments
Posted: Fri Feb 26, 2021 1:45 am
by adamu
The great thing about funds is that they are already diversified.
eMaxis slim all country represents the equivalent of buying all the major companies in the world. Hard to get more diversified than that.
That gets you a diversified stock portfolio though. You also need to consider whether other asset classes such as bonds or precious metals are something you want to consider.
Personally I just stick with 100% stocks (and some leftover bonds and cryptocurrency from earlier experiments), but I still have decades to invest and I'm pretty confident I'm not going to panic and sell out in a market dip.
Re: diversifying investments
Posted: Fri Feb 26, 2021 3:08 am
by Kanto
adamu wrote: ↑Fri Feb 26, 2021 1:45 am
The great thing about funds is that they are already diversified.
eMaxis slim all country represents the equivalent of buying all the major companies in the world. Hard to get more diversified than that.
That gets you a diversified stock portfolio though. You also need to consider whether other asset classes such as bonds or precious metals are something you want to consider.
Personally I just stick with 100% stocks (and some leftover bonds and cryptocurrency from earlier experiments), but I still have decades to invest and I'm pretty confident I'm not going to panic and sell out in a market dip.
I agree. You can pay a little more in fees to be more diversified across a wider ranger of stocks if you want with the Rakuten All Country Fund.
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000FHC4
However, Emaxis All Country is just as good! The two funds are competitors in a way as they track different indexes.
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New investors do not need to worry about bonds. Especially in the current market. Reevaluate in 5 years. REITs and currency and commodities are riskier and are best avoided if you are unexperienced.