If you’re wondering whether you’re on the right track to maximize your growth over the next decade, and if you should take more risks, I’m here to help. You also mentioned that you have £50k in Premium Bonds that you plan to use as a house deposit in the next 18 months. I appreciate your thoughts! – P, Williams
Victoria says:
It’s fantastic to see you taking control of your financial future at such a young age.
To set yourself up for success, it’s best to remain invested in the long run, which is exactly what you’re doing. You’re ahead of the curve with over £25,000 for stock picking, more than £38,000 in funds and ETFs, and £50,000 in Premium Bonds for a house deposit.
I also love that you’ve set up regular investing to smooth out market volatility and remove the need to time the market.
Since you’re in your early 30s and have no immediate plans to use your investment, focusing on growth and taking some risks is the right approach. I noticed that you have a heavy weighting towards the tech sector in your stocks portfolio, which aligns with your goals due to the sector’s growth potential.
However, it’s important to be cautious about being too concentrated in one sector, as the market tends to lump tech companies together. Diversification is key to managing risk.
Adding growth to your portfolio doesn’t have to rely solely on tech. Consider looking into “steady growers” like consumer shares, which can reliably increase profits and offer dividends. Terry Smith’s Fundsmith Equity is a great option in this “quality growth” space.
Other individual shares worth considering are LVMH, a French luxury group that has shown consistent revenue growth, and Procter & Gamble in the US, with steady sales growth.
As for geographical allocation, you are mainly invested in the UK and the US. Given your desire to take risks and your long investment horizon, it might be beneficial to consider increasing your allocation to emerging markets, which have strong long-term growth potential.
China, despite its current economic challenges, presents an opportunity to invest in emerging markets at a discount. JPMorgan Emerging Markets Trust is a good option that provides exposure to large, listed shares at a bargain price.
In terms of long-term growth areas, sustainable investing and climate change technologies are worth exploring. The iShares Global Clean Energy Ucits ETF is a recommended choice, offering exposure to clean energy companies without overpaying for speculative investments.
Lastly, there’s no harm in having some fun with your Premium Bonds, especially with the increased prize fund. However, it’s also worth considering easy-access savings accounts to compare returns.
With a long investment horizon, a solid foundation, and the power of compounding on your side, you’re well-positioned for success and a comfortable retirement. Thank you for reaching out!
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