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maxdiver

Isa Time / Sipp

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I am looking at where to invest my SIPP and ISa allowances for the end of the tax year and I've been doing a bit of research.

One thing that I've been struck by is this type of comment "I would recommend a diversified portfolio with Tracker funds, targeted return and PROPERTY funds to form the basis of any prudent investment plan, for the more adventureous investor I would recommend XXXX's Special Alpha Situations fund."

Ok, I've been reading newspapers and their comments for a number of years and it's only been since 2008 or so that they have said that as part of a diversified portfolio, you should hold PROPERTY funds - I don't remember anything being said before that.

In fact, many of these funds were launched around 2006 or so - long after the HPI lows - they all came a little late to the party.

Wanting investors - or telling them in fact - to have property in their investment portfolio is a scam - (maybe the people who own the property funds want to encourage people to buy the fund they are trying to sell?)

Has anyone else noticed this?

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Property funds available to retain investors almost always invest in Commercial Property so HPI doesn't really apply. Property funds have been around for far longer than since 2006, and asset allocation theory does suggest diversification (i.e. investing in several asset classes) rather than "putting all your eggs in one basket" and has done for some time. Nothing you've said is really evidence of a scam.

Having said that no one's suggestion should coerce you into investing in something you don't want to. If you don't feel property funds are right for you then don't invest in them. Certainly there's an argument that Property is not an asset class with good growth prospects at the moment.

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Property funds available to retain investors almost always invest in Commercial Property so HPI doesn't really apply. Property funds have been around for far longer than since 2006, and asset allocation theory does suggest diversification (i.e. investing in several asset classes) rather than "putting all your eggs in one basket" and has done for some time. Nothing you've said is really evidence of a scam.

Having said that no one's suggestion should coerce you into investing in something you don't want to. If you don't feel property funds are right for you then don't invest in them. Certainly there's an argument that Property is not an asset class with good growth prospects at the moment.

Probably nothing sinister but a lot of marketing of property funds normally indicates someone influential wants to unload their holding.

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Well, I don't remember property funds being touted as an essential part of any portfolio until a few years ago.

It seems that the investment zeitgeist is for property funds.

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A generalist fund may include a stake in property companies, if the managers think they're a good idea. A fund that's specifically property would be an optional component of a diversified portfolio.

Bear in mind, property companies can be different things. Landlords, construction companies, suppliers to construction industries, agents, etc. An infrastructure fund (which I'd put ahead of a specifically-property fund for the foreseeable future) might invest in all those things.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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