Rob Morgan, chief analyst at Charles Stanley, said:

Mr Marrow has built a geographically diverse portfolio with some good quality funds, but he is making a mistake by just investing in stocks.

The ups and downs of stock markets might not bother him at the moment, but as he comes closer to hitting his savings goals then his portfolio could be too risky. Adding some bonds would smooth out returns. 

A “strategic” bond fund is a good option. They can invest across the entire bond world, from company debt to government debt. One fund worth considering is the Janus Henderson Strategic Bond fund. The £3.4bn portfolio dates back to 1986 and yields 2.6pc. Its biggest positions are in bonds from tech giants Microsoft and Alphabet, as well as the Canadian and British governments. 

So far Mr Marrow has just gone for actively managed funds but there is a place for both passive and active investments. Tracker funds are particularly good for markets where fund managers consistently struggle to beat the average: often large, well-researched markets. 

The US market is a prime example and investors will have done well in recent years simply owning an S&P 500 tracker, such as the iShares US Equity Index, which charges 0.05pc.

Yet there are also areas where I would hesitate to take a passive route. UK smaller companies is one area where active managers have done much better over the years, one example being Franklin UK Smaller Companies, which has returned 284pc over a decade compared with 213pc for a passive alternative.

In Asian and emerging markets there is likely more opportunity for active managers to beat the average. Good quality funds in these areas include Schroder Asian Alpha Plus and Stewart Investors Global Emerging Markets Sustainability. 

There are also investments beyond the reach of passives that are worth considering. For instance, “illiquid” areas such as physical property and infrastructure can be accessed through specialist investment trusts, such as LXI Reit and International Public Partnerships.