Investment advice

Lokolo

happyrichard wrote: »

Me rude- your one liner of "Nope. That would mean its not really an investment" was charming...:rolleyes:

I did not want specific advice on a specific investment as I only found this one when I thought I should back my point up with an example of how you can have an investment without risk.

I note that you are yet to graduate- some way to go obviously.

Thanks for your words of wisdom. I will search in another area for advice and I will try and be more specific and clearer to ensure that people are able to help me.

Apologies if this comes over as rude, but I started my post purely wanting advice- not to be told I knew nothing.

Haha bringing my education into this is low, very very low.

I didn't say you didn't know anything...... I didn't know anything when I came onto this forum, yet I learnt.

Now you know GEBs aren't a good investment choice

If you don't want to take risk with your capital, why do you not want to stick with savings? GEBs are going on the basis of flipping a coin, if the FTSE rises, you get interest, if it doesn't, you don't. Can you not see why its pretty rubbish?

ALSO, the one you chose has a minimum payout of 11.25% over 5 years, which is 2.25% not including compounding. If you want to take the flip of a coin go for it.

If you are willing to invest over 5 years you may as well look at different investments such as OEICS rather than GEBs. Get a couple of Corporate Bond funds (which are lowish risk, compared to equities) and invest into these. But there is then the risk to your capital, which you seem not to want.

kostigovs

Lokolo wrote: »

Nope. That would mean its not really an investment.

There are many on here who like to be EXACT about the diffeence between savings and investments. Nevermind that when you phone banks/building societies they describe savings as investments

kostigovs

Sorry "difference"

Lokolo

kostigovs wrote: »

There are many on here who like to be EXACT about the diffeence between savings and investments. Nevermind that when you phone banks/building societies they describe savings as investments

Haha yes, thats why on here we are better than the banks. Just ask anyone.

Don't get people started on banks calling fixed term products Bonds, you'll start a riot.

happyrichard

Thanks

Appreciate your help and apologies about the education- wish you well.

bendix

Lokolo.

Shame on you for causing so much trouble. That's usually my role ;-)

Lokolo

bendix wrote: »

Lokolo.

Shame on you for causing so much trouble. That's usually my role ;-)

Haha I know I feel ashamed of myself. Its Friday and work is killing me.

mr_fishbulb

happyrichard wrote: »

There is no reason for investments to have an element of risk.

The less capital risk you have, the more inflation risk there is.

dunstonh

Nevermind that when you phone banks/building societies they describe savings as investments

And they call fixed term deposits "bonds" and a make a whole range of other mistakes in the interests of marketing.

Saving tends to have two means. 1 - the use of cash based deposits and 2 - regular contributions (even into a an investment).

On the subject of GEBs, they are largely pretty rubbish but every now and then there can be a good one or a window of opportunity where the terms look very attractive. A year or two back there was one that would pay out 16% a year as long as the FTSE didnt drop. If it did and stayed down for the whole term then it would return the capital. That was a pretty good GEB on for those wanting to use their "investment" allocation coveirng the UK sector.

Earlier in the year you could get 9% income products. Now you can get 7%. Likely to be in the 6% range soon. That window looks like it is starting to close.

Many of the ones issued direct (Egg or Post Office) or retailed in the high street (by banks and building societies) tend to be poor. They dont have to give good terms generally as the bulk of their business comes from their own low skilled sales staff selling to low knowledge bank customers who wouldnt know good from bad.

fg22

mr_fishbulb wrote: »

The less capital risk you have, the more inflation risk there is.

Perhaps off topic but...

This isn't really true; less exposure to capital risk does not mean more exposure to inflation risk. For example NS&I offer risk free index linked savings cerificates with both negligible capital risk and negligible inflation risk. In comparison an investment in fixed interest corporate bonds places your capital at risk if they default and is also subject to inflation risk as your real return will be lower if inflation is higher than expected.
There is a theoretical link between equity returns and inflation but in the short term I'm not sure if there is much correlation.