Protecting your money

jfpeeps

Ok so you are saying keep it as cash. What do you think of PRGFX

We are pretty solvent and can afford a little risk but have one chance at a nice house and want to be as carefull as possible.

jfpeeps

I guess what I meant was is cash less risky than Gold ? bonds etc...

gozomark

PRGFX is a large cap US equity fund - you are taking 2 risks, assuming you live in the UK - the US equity market, and the currency. "want to be as carefull as possible" does not equate to holding this, or any other equity fund. Its halved once - it could halve again, or it could double. Can you afford to see it halve again ?

gozomark

jfpeeps wrote: »

I guess what I meant was is cash less risky than Gold ? bonds etc...

yes v gold

by bonds - do you mean corporate, govt, or fixed interest rate savings accounts ?

jfpeeps

Thanks for all the advise

I am a uk resident (married to a yank....;-)

Was thinking Gov bonds link to consumer index... is that right? Why do you think sterling over dollar?

I could survive a halving but would buy a flat instead of a house!

jfpeeps

I could afford to see it halve in the short term (2-3 years regardless of house) but wonder if it is a long term investment or if I should just cut my losses.

gozomark

Gov bonds link to consumer index - its actually against RPI not CPI, but yes its safe, possibly the safest you can have as long as RPI is representative for you

Why do you think sterling over dollar? - I don't understand the "why" in the question - do you mean what do I think will happen to £:$ exchange rate ?

jfpeeps

You said PRGFX is a two fold risk, one being the currency...

We are both in the UK long term so it represents us.

Thanks!

gozomark

jfpeeps wrote: »

I could survive a halving but would buy a flat instead of a house!

I don't understand why you would take the risk if it means that sort of difference

gozomark

jfpeeps wrote: »

You said PRGFX is a two fold risk, one being the currency...

We are both in the UK long term so it represents us.

Thanks!

PRGFX has assets priced in $, so the value of the fund in £ depends on both the exchange rate and the $ price of the fund - that means for UK investor there are two levels of risk