Ain't nobody got time for that. That's why I have a broker/adviser.
I'm just trying to get a feeler here for what's normal as it's always good having input from multiple sources. I can then take this info to my broker and ask him for further advice.
You may not have time for getting savvy about finances or investment tools, but honestly, it is worth your while to have a basic understanding. It may not interest you in any way, shape or form, but at least it will help you understand if your Financial Adviser (FA) is giving you good advice or slowly fleecing you.
It is unfortunate, but there are still some who are in it for self-enrichment (e.g. through selling investments which give them the best commission returns).
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So stick to your 5 year plan and re-evaluate at the end of the period.
As for the new money put that in somewhere else and make sure it diversifies from the UT's you have already.
Two things from this:
1.) Your FA should have done some sort of analysis with you to assess and understand your plan/s and appetite for risk. Not all investment tools are equal. Quite a few can be rated from conservative to moderate to aggressive. Your FA should have a good understanding of your appetite and have provided you with options accordingly.
My personal appetite mostly comes out as moderate to moderately aggressive. But that is because I have a longer term view and I am prepared to ride out the market's fluctuations. You will have your own appetite which (I think) should be in line with your timeline and plan/s.
2.) Diversification for the sake of diversifying alone isn't enough. An example of diversification would be a fund that focuses on the Top 40 and/or Property Top 10 and/or Financials and/or Global exposure.
Diversifying also means that there is little overlap in the types of companies into which they invest and/or the balance of the fund/s. For example, local equity (our JSE), international equity (such as index trackers), money market, property, etc.
Some are focused on dividend returns, but I have yet to see one that excels like this.
Different funds also have different ways to in which they buy into equity, weighting and quarterly re-balancing.
That true, makes me think of something to consider.
DrJohnZoidberg, are you definitely going to use the money within 5/4 years? (house deposit, education fees?)
If yes, and I think it will be yes, why else the timeframe, then that's why I say a conservative base with a growth component. The loses are minimal in my opinion at the moment so a switch will not that bad. It's true that market might grow a lot, as I said, no one bought resource shares/funds at the start of 2016, most pushed money overseas, and then those resource shares/funds did great, one just doesn't know and if you are conservative that's just not good.
Good comment/advice here ^ I am cautious of funds with too much exposure to resources. They are too volatile and would probably be the preference of an aggressive investor.
Your appetite appears to be toward something that delivers smoothed returns. Old Mutual offers something like this that guarantees a specific minimum return (others too?), but then the fees are a little higher than others. This is worth considering if you aren't looking to shoot the lights out.
