Recommendation or advice on which higher risk fund to go for.

[Pumpkin Whiskey]

Hi,
I am currently paying into an employer pension scheme: "Aspire High Growth Portfolio" which according to Zurich has a risk rating of 5/7.
It is composed of:

	72.00% Equity
	14.00% Bonds
	10.00% Property
	2.00% Cash
	2.00% Alternatives

I am 27 years away from retirement. I am wondering if I should be investing in higher risk funds? The following funds have a higher risk rating than the above:

Diversified Equity
Passive Emerging Markets Equity
Passive Global Equity Partial Hedge
Passive Global Listed Property
Passive Sustainable Equity

I am eyeing up the Passive Global Equity Partial Hedge, would pushing in 100% with 27 years before retirement be recommended? What kind of investment funds are you paying into ?

 

[AJAM]

IMO 100% equity with 27 year to retirement is fine.
And Passive Global Equity Partial Hedge, looks like the best choice from the ones you've listed.
Best because it is passive, diversified and has a good track record.

 

[MrEarl]

While I also think that 100% investment in high risk with 27 years to run, is fine (in fact I'd think its fine if you've only got 15 years to run) ...

I'm wondering, are you proposing to move a lump sum in and buy units at the current price, or just start regular contributions into this new fund (starting from zero, and buying units each month) ?

My reason for asking is because it's debatable as to whether this is the right time to be putting a significant lump sum into a high risk fund (for fear of it dropping 20% - 30% - 40% over the next 1-2 years).

 

[Pumpkin Whiskey]

I was considering moving the lump in my current funds over to the 100% equity fund, and also starting regular contributions to this fund. Most places I read online says to not try time the market, time in the market etc..etc.. Does that still stand here regarding transferring sums between pension funds? I would imagine its anticipated that in the long term, these funds will go back up?

 

[NoRegretsCoyote]

Most places I read online says to not try time the market, time in the market etc..etc..

That's right.

Does that still stand here regarding transferring sums between pension funds?

However for a transfer I would be a little more cautious and do it in maybe three chunks over the space of six months. I don't believe you can time the market but most people are loss averse and bond markets do have volatility - see UK gilts last week where the price fell a quarter in four days, and has since recovered by about a half.

 

[AJAM]

But OP is moving the lump some from another fund that is 72% Equity 14% bonds. OP has presumably already seen the value of this fall 15-20% or more. I have noticed in my pension fund that the passive 100% world equity fund is outperforming the managed "high growth" funds, not only over the long term (which you would expect) but also over the recent short term (which you would not expect as the whole point of bonds is to smooth out the downside, but bonds have also been crushed this time round).

So as the OP is not sitting in cash, i would say go ahead and move both current and future contributions now.

 

[Jim2007]

Hi,
I am currently paying into an employer pension scheme: "Aspire High Growth Portfolio" which according to Zurich has a risk rating of 5/7.
It is composed of:

	72.00% Equity
	14.00% Bonds
	10.00% Property
	2.00% Cash
	2.00% Alternatives

I am 27 years away from retirement. I am wondering if I should be investing in higher risk funds? The following funds have a higher risk rating than the above:

Diversified Equity
Passive Emerging Markets Equity
Passive Global Equity Partial Hedge
Passive Global Listed Property
Passive Sustainable Equity

I am eyeing up the Passive Global Equity Partial Hedge, would pushing in 100% with 27 years before retirement be recommended? What kind of investment funds are you paying into ?

Nobody can tell you with certainty what the outcome will be. However a well balanced portfolio if most likely to produce the best outcome over the long haul. If I was you I would push the property element down to about 6% or 7% and the bonds down to about 10%, but otherwise leave it alone.