Making monthly contributions of £1,000 over 30 years, which is forecast to add up to £360,000, 27-year-old Tom Sainsbury has some big decisions to make about his portfolio.

The engineer, from Plymouth, has moved from a workplace pension into a self-invested personal pension and has selected seven funds to invest regularly in. These include the £29bn Fundsmith Equity fund, which owns technology and consumer goods giants, as well as the £7.3bn Baillie Gifford American, which buys fast-growing US-listed shares, such as Tesla.

His funds concentrate on buying relatively expensive and highly regarded “growth” stocks rather than out of favour “value” shares.

“I have picked my investments by following the financial press, such as Telegraph Money stories, and by looking at fund portfolios and manager commentary to select strategies which align with how I want my money invested,” said Mr Sainsbury.

His biggest concern is that he does not own enough cheap shares, so his portfolio will be vulnerable if there is a change in which types of stocks perform well. The past decade has been brilliant for technology stocks, but the tide could be turning as inflation and interest rates rise.

“I know that I am taking a lot of risk in the portfolio, but as I am 27 and plan to invest for 30 years, I don’t see it being an issue at the moment,” he said.

“As I get closer to retirement I will reevaluate to lower risk.”