Milo Posted February 17, 2006 Share Posted February 17, 2006 I’ve been very lazy with my savings but have recently considered investment options for about £10k. This may be of interest to others doing the same and I would welcome views on medium to low risk investment options that pay more than cash ISAs and savings accounts. I might just go towards a deposit on a house one day. Having sought the views of Nationwide (just a starting point) the sales pitch was as follows: £4500 in ‘Target Fund’ (last 12 months has made 7.7%. Was invested approx 40% cash, 40% equities, 20% bonds/gilts. Fees are 1.5%). £4500 ‘Balanced Fund’ (last 12 months made 17.5%. Was spread approx 35% overseas equities, 40% UK equities and 25% bonds. Fees 1.5%) £1000 Tracker (made 19.4% last 12 months and outperformed the managed fund. Tracks FTSE 500. Fees 1%). It can all go into ISA before and after April. Quote Link to comment Share on other sites More sharing options...
Leeds-Bozz Posted February 18, 2006 Share Posted February 18, 2006 If you act quick you might get some of this in the Ruffer Total Return fund which will be soft closed 3/1. I am looking at insight diversified for next years ISA. DYOR of course. Quote Link to comment Share on other sites More sharing options...
jonpo Posted February 18, 2006 Share Posted February 18, 2006 how about allocating based on yield this is probably going to give you a 33% 33% 33% weighting currently (If you choose cheap equities like IDVY.L). bonds cash and equities. Quote Link to comment Share on other sites More sharing options...
penbat1 Posted February 18, 2006 Share Posted February 18, 2006 I wouldnt invest in any equities unless it is 5 years plus and preferably 10 years plus for your last two options. Quote Link to comment Share on other sites More sharing options...
verolution Posted February 19, 2006 Share Posted February 19, 2006 i agree with jon, go with ETFs and you will save on the fees. IIRR squaregain charges no commission (other than their spread) on ETF trades which will also save you money. Could do something like: 25% MIDD.L iShares FTSE 250 25% IEEM.L iShares MSCI Emerging Markets 25% LQDE.L iShares GS $ Investop Corporate Bond 25% IUKD.L ISHARES UK DIV http://www.londonstockexchange.com/en-gb/p.../prices/etf.htm Quote Link to comment Share on other sites More sharing options...
Milo Posted February 19, 2006 Author Share Posted February 19, 2006 Thanks. I’ll need to put serious thought into ETFs. Looks like I have to learn a new language first. Ruffers performance looks good but it seems the charges are high and the risks? 5 years to 10 years min. is quoted by most advisers and most of the literature I’ve come across. I doubt the stock market will repeat its performance of the last couple of years but I wonder whether this warning is overly pessimistic for shorter term investments at present. I'm basically taking a gamble with a proportion of my cash and it’s a matter of weighing up the relative risks/benefits and making a decision and what level of risk I can afford. I may wish to convert to cash in a year or two but if the prices drop I can let a few £k ride until the market picks up again. But I wouldn’t want to have £10k tied in for 5 to 10. Quote Link to comment Share on other sites More sharing options...
penbat1 Posted February 19, 2006 Share Posted February 19, 2006 Thanks. I’ll need to put serious thought into ETFs. Looks like I have to learn a new language first. Ruffers performance looks good but it seems the charges are high and the risks? 5 years to 10 years min. is quoted by most advisers and most of the literature I’ve come across. I doubt the stock market will repeat its performance of the last couple of years but I wonder whether this warning is overly pessimistic for shorter term investments at present. I'm basically taking a gamble with a proportion of my cash and it’s a matter of weighing up the relative risks/benefits and making a decision and what level of risk I can afford. I may wish to convert to cash in a year or two but if the prices drop I can let a few £k ride until the market picks up again. But I wouldn’t want to have £10k tied in for 5 to 10. You might do well with less than 5 but you are taking a risk. Would it be a disaster if you lost money ? Quote Link to comment Share on other sites More sharing options...
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