For anybody starting investing today, for the long term, here are some model portfolios that I suggest will set somebody up very effectively and should beat the equivalent master portfolios from e.g. Hargreaves Lansdown or ii.
These ready-made master portfolios are all:
- Based on low price index trackers from market leading Exchange Traded Fund (ETF) providers. Each master portfolio costs, on average, less than 0.20% a year – plus your platform charges. In contrast, the master portfolios at HL will cost you over 1% a year, and expose you to ‘Woodford risk’. Higher fees will, in the long run, result in worse performance.
- Very simple to set up, with no more than holdings. This means they can be run efficiently with as little as £5k initial investment. Each model portfolio’s funds contains many hundreds of individual company’s shares/bonds – giving excellent diversification.
- ‘Work anywhere‘ – you can buy these ETFs on all leading platforms and stockbroking sites.
Moreover, with just 3 clicks or less you can choose a master portfolio that suits your style, is tailored to your geographic preference, and is sustainable/ESG if you prefer. All these portfolios are suitable for pensions (via a SIPP), ISAs or a general investment account.
Start by choosing your portfolio style: