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    • Not Me Officer
    • By Not Me Officer 18th Jun 17, 4:17 PM
    • 212Posts
    • 24Thanks
    Not Me Officer
    20k low-ish risk
    • #1
    • 18th Jun 17, 4:17 PM
    20k low-ish risk 18th Jun 17 at 4:17 PM
    Rather than dumping it across a range of bank accounts, if you were to just put 20k into a S&S ISA for example (LISA no good, Pension no good - would need the option to have access) what sort of low risk funds would you be looking at where you would hope to generate more than leaving it in cash savings? It'd be for the fairly long term but like i say would want to retain the option of pulling it out if needed to access it.
    I imagine you'd probably put it all into just the 1 fund or split between 2 at the most but what are you looking at? Obviously not emerging markets and high equity percentages. I've only really looked into increased risk lately & paid very little attention to what would be suitable for something like this.

    TIA.
Page 1
    • eskbanker
    • By eskbanker 18th Jun 17, 5:24 PM
    • 4,801 Posts
    • 4,531 Thanks
    eskbanker
    • #2
    • 18th Jun 17, 5:24 PM
    • #2
    • 18th Jun 17, 5:24 PM
    The typical answer to this question on here is a global multi-asset fund for risk-minimising simple diversification, which are often available in a range to accommodate variable risk tolerance. For example Vanguard LifeStrategy is available in flavours ranging from 20% equities (80% bonds) up to 100% equities, with risks and rewards to match. L&G Multi-Index is similar, others available include Blackrock Consensus and HSBC Global Strategy. Investing in this way means you don't have to think about monitoring in great detail and regularly rebalancing your portfolio as it's all taken care of for you.

    Again it's frequently reiterated that you should only invest in such products with money you know you're not going to need in the short to medium term, so don't rule out cash savings if you don't have a sufficient emergency rainy day fund that's readily accessible.
    • Not Me Officer
    • By Not Me Officer 18th Jun 17, 5:32 PM
    • 212 Posts
    • 24 Thanks
    Not Me Officer
    • #3
    • 18th Jun 17, 5:32 PM
    • #3
    • 18th Jun 17, 5:32 PM
    The typical answer to this question on here is a global multi-asset fund for risk-minimising simple diversification, which are often available in a range to accommodate variable risk tolerance. For example Vanguard LifeStrategy is available in flavours ranging from 20% equities (80% bonds) up to 100% equities, with risks and rewards to match. L&G Multi-Index is similar, others available include Blackrock Consensus and HSBC Global Strategy. Investing in this way means you don't have to think about monitoring in great detail and regularly rebalancing your portfolio as it's all taken care of for you.
    Originally posted by eskbanker
    Thanks. I did think the VLS20 would possibly be suitable but i'm well aware i appear to be looking totally at Vanguard products. Not that i'm blinkered but that they just seem to fit.

    Although how the VLS20 would compare to cash savings i don't know.
    Again it's frequently reiterated that you should only invest in such products with money you know you're not going to need in the short to medium term, so don't rule out cash savings if you don't have a sufficient emergency rainy day fund that's readily accessible.
    True, that's why the 40k would stay in cash
    • bostonerimus
    • By bostonerimus 18th Jun 17, 5:51 PM
    • 352 Posts
    • 190 Thanks
    bostonerimus
    • #4
    • 18th Jun 17, 5:51 PM
    • #4
    • 18th Jun 17, 5:51 PM
    VLS20 might be a riskier move than you'd think with interest rates in the way up.
    Misanthrope in search of similar for mutual loathing
    • ColdIron
    • By ColdIron 18th Jun 17, 6:09 PM
    • 3,162 Posts
    • 3,598 Thanks
    ColdIron
    • #5
    • 18th Jun 17, 6:09 PM
    • #5
    • 18th Jun 17, 6:09 PM
    Low-ish covers a wide range. Maybe have a look at capital preservation trusts like RIT Capital Partners and Personal Assets Trust or the Troy Trojan fund?
    • Linton
    • By Linton 18th Jun 17, 6:13 PM
    • 7,913 Posts
    • 7,712 Thanks
    Linton
    • #6
    • 18th Jun 17, 6:13 PM
    • #6
    • 18th Jun 17, 6:13 PM
    There are ITs and OEICs/UTs that specialise in wealth preservation. They performed well during the 2008/2009 crash:

    Trojan 'O' (Fund)
    Ruffer Trust
    Capital Gearing Trust

    And there are the real return funds that aim to produce a positive return every year. Some are rather unsuccessful but Newton Real Return has been pretty good at its job, in particular during the crash.


    At the moment I would look at the wealth preservation funds in preference to a high bond fund as bond prices are unusually high. However some bond investment could be worthwhile.
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