The UK based investor here.
I haven't found anything under "Multiple index funds" search criteria thus decided to give it a go, if there is already a similar question/answer would love to get a link.
I am planning to invest in index funds, I have my eye on the cheapest options possible. This is the list I assembled having a very limited knowledge and no practical experience with investing.
- Fidelity Index US Fund P GBP Income - ongoing charge 0.06%
- iShares UK Equity Index Fund (UK) D Acc - ongoing charge 0.06%
- Vanguard Emerging Markets Stock Index Fund GBP Income - ongoing charge 0.27% - this one is obviously more expensive but I am thinking about allocating let's say 10% of my investment here.
- Vanguard Global Small-Cap Index Fund GBP Accumulation - ongoing charge 0.38% - this one is even more expensive, but as above, I'm thinking about having it at a level of 10% of my total investment.
Can anyone with practical experience, tell me if it makes sense to invest straight away in 4 different index funds, or shall I start with one index first?
The first two look more stable, the last two yield quite extraordinary returns, I think and seem a bit riskier.
It's going to be ISA wrapped, and my plan is to load £4000 at first keeping the 40% 40% 10% 10% ratio and add £1000 every month.
Are there any red flags in my thinking, am I too optimistic or maybe the other way around?
I am 35 years old man with no commitments at the moment and planning to invest for retirement.
Thanks in advance!