I recently posted my fund portfolio ideas to a forum on this website and received some great constructive feedback that has helped me greatly to revise my current thinking which I would like to now share for opinions on strategy content, weightings and investment timing.

I am looking to build a long term funds’ portfolio through my ISA and start now in this bear market with investment trusts, funds and ETF’s – whatever looks like consistent good value.

I want to invest in high quality investment products that I can leave to compound in interest overtime - growth focused and manged through own quarterly reviews and rebalancing.

Currently my thinking is picking Morningstar 3*,4* & 5* rated relatively low cost funds/trusts/ETF’s that have had consistently strong growth (10% + over 3yrs) while picking a relatively low standard deviation within its peers and picking those showing stronger growth in the short term compared to others in its sector, while also comparing holding to ensure I am not buying funds too similar. I also look into managers ratings and managers holding s via Citywire

I have used Morningstar’s Sector performance ranking to base my thinking on and current sectors Global No looks like this:

  • Global
  • North America
  • Healthcare

This has led me to pick the following funds and contemplate the following associated weightings:

iShares S&P 500 information sector UCITS ETF = 30%

Exposure to USA and in particular technology. I believe over time the S&P will recover over time and invested heavily in strong US tech companies it has good growth prospects.

Scottish Mortgage (SMT) = 30%

I want to have global/tech exposure. This one is a low-cost investment trust that has continued to outperform its benchmark over time. With some exposure to China through this fund it allows me to have diversification in China through some of the stocks SMT invests in without directly exposing myself in an area that is quite unknown to me.

Baillie Gifford Positive Change Fund = 20%

Further, this fund invests in stocks that are making a positive change such as education and healthcare I believe will continue to benefit from the move in sentiment towards more sustainable/green investment.

Edinburgh Worldwide Investment Trust (EWI) = 20%

I believe this sector will benefit from the recent focus in this area and further still in…

Unlock this Article with a 14 day free trial

or Unlock with your email

Already have an account?
Login here