Interactive Investor<\/a>) there are no extra costs buying 1 fund vs 10 funds (it’s free to invest on a regular monthly basis) and I get 2 free sales trades per month, which is more than I’ll need. If I do need to make more than 2 sales in a month then it’s a fixed \u00a35.99 fee. If your brokers fee structure is different it is something worth thinking about when it comes to how many funds you want to hold.<\/p>\n\n\n\nAll the funds, except one (EQQQ), are accumulation not distribution, simply so I don’t have to deal with reinvesting dividends. If I were putting this into a General Investment Account, which is subject to CGT & Dividend tax, rather than a SIPP or ISA which are not, I would use the distribution equivalents instead to make the tax calculation easier.<\/p>\n\n\n\n
Whilst I only want a handful of funds in total for ease of management, I do want the ability to tilt towards or away from a market. For example, I may or may not want 10% in Emerging Markets. If you go with the 1 fund portfolio approach using something like VAFTA you can’t change that. If you go with a 2 or 3 fund portfolio you can.<\/p>\n\n\n\n
I am happy with and am deliberately doing some tilting e.g. toward the USA via the S&P 500 (see point above that this isn’t as much of a tilt as you might first think).<\/p>\n\n\n\n
I want a little bit of spice with a small % (<10%) of the portfolio, so I am deliberately tilting towards the NASDAQ and US small-cap value. But I do not intend to keep these holdings over the longer term.<\/p>\n\n\n\n
The NASDAQ (which is US tech stocks) has had a terrible few years and I’m speculating that over the next 3-5 years it will bounce back strongly.<\/p>\n\n\n\n
US Small Cap Value has done really well over a long time period (30 years) and I’m hoping it will continue to outperform.<\/p>\n\n<\/div>\n\n\n
The FIRE Portfolio<\/h2>\n\n\n\n