Buying Index-Linked Gilts

WharpBlast

I am thinking about buying UK Government Index-Linked Gilts with a 2 - 4 year (or longer) investment horizon. How do I choose which Gilts to buy ? As an individual investor am I better off looking at new issues rather than the market ? Or should I leave the decisions to others and buy Unit Trusts ?

Note the investment would be part of my pension funds so tax free.

WB.

cheerfulcat

How do I choose which Gilts to buy ?

That really depends on what you want them for. If it's just for portfolio diversification, and since tax is not an issue, I would suggest looking for the highest yield.

As an individual investor am I better off looking at new issues rather than the market ?

Probably; at least that way you are getting the full coupon. However, if you value your privacy you might prefer not to buy as an individual investor as you will need to disclose the value of your other investments on the application for " Approved Group " status ( a requirement of the DMO ).

Or should I leave the decisions to others and buy Unit Trusts ?

Certainly the easiest way but charges will eat heavily into what is already likely to be a pretty meagre return.

There is a very useful manual on the DMO website, and a Q&A here. A short Incademy course ( free ) here, and a dedicated board on TMF.

HTH

Cheerfulcat