What investment next?

rob_kzk

Hi All,

I have a ten year endowment policy with Scottish Widows that matures in December this year and I was wondering what the best investments are that I can pay into monthly after my endowment finishes.

I’m quite risk averse and I would like to protect my capital but hopefully make a bit more on top.

Does anyone have any suggestions?

Thanks

Rob

cheerfulcat

Hi, Rob,

The " risk-free " rate of return is that of cash. If you want to improve on that, you'll have to take a chance with your capital. You could take advantage of pound-cost averaging by investing regularly in an index tracker of some kind; this will give you a stock-market linked return and should preserve capital fairly well; over the longer term it will almost certainly outperform cash. If you wanted to be ultra-cautious you could invest half in the tracker and put the other half into one of the high rate regular saver accounts available just now.

HTH

Cheerfulcat

dunstonh

... or if you dont want to get into the stockmarket but dont mind something inbetween cash and stockmarket, then you have commercial property funds, corporate bonds, gilts and fixed interest funds.