I am 20 years old, uk based, and have £7000 to invest. I was thinking of doing this portfolio:
Core Fund (90%) £6,300:
80% SP500 (VUAG)
20% All World ex USA (XUSE)
Fun Money (10%) £700
I figured since I am young I can afford to take risk with a greater US allocation and going with SP500 rather than a total US market fund. As for the fun money I know this can be quite a divisive subject but I enjoy keeping up with economics and business news and following the markets daily. I suppose it's more of a little hobby and practice to further understand how the markets work, I will try to avoid gambling the fun money and will of course learn how to research and understand investments before they are made. I will likely not be choosing stocks solely myself but instead do research on the back of tips and advice from successful investors. It is an amount of money that I would be comfortable losing and my life would not change without it, and who knows I might get lucky. But the main purpose is to use it as a tool for learning.
What are your thoughts on this portfolio?
Many thanks