Portfolio composition

[alistar_mid]

Thanks for mentioning this and the Stuff article. The main points are that sure a fund may be doing well but when the music stops and it will, you will take a huge haircut in your invested capital.

The funds that are performing above benchmarks need to as the risk is higher than a fully liquid fund with similar performance.

If you have second thoughts and try and withdraw when there is a run on the fund this is when losses will be crystallised.

I think what people need to consider is diversifying their invested capital between a few structures and also asking themselves how they would react if there is a run on the fund. Ideally you would remain but there is huge uncertainty in the value of the remaining units.

I suggest diversifying between different structures, looking at 10y performances, % held in what companies and being ruthless if the fund is looking average. This is because the risk profile is higher than a more conservative fund.

Errr.... when its not doing well you want to be buying more... why the F would you withdrawal at the worst possible time? if your'e emotionally driven and will follow the sheep when everything adjusts and want to bail cause your'e scared theres always term deposits.

[Schrodinger]

Errr.... when its not doing well you want to be buying more... why the F would you withdrawal at the worst possible time? if your'e emotionally driven and will follow the sheep when everything adjusts and want to bail cause your'e scared theres always term deposits.

If you actually read the commentary we are talking about portfolio risk and what happens when the market turns - these funds need to be performing high and you technically have zero liquidity if there is a run. The conversation is about portfolio risk and not about if you favour term deposits v funds.

[kiora]

"Here’s what smart rich people really do with their nest Egg"
//www.marketwatch.com/story/heres-what-smart-rich-people-really-do-with-their-nest-egg-2018-07-11?siteid=yhoof2&yptr=yahoo

[kiora]

Another leg up for stocks?
https://www.marketwatch.com/story/ba...of2&yptr=yahoo

[Timesurfer]

I have a balanced portfolio.
When one stock goes up the other goes down. Sometimes I think I'd rather have one stock so at least then I get some good days where the portfolio jumps up!
This balanced thing is definitely an exercise in patience!