Can you suggest some low-risk funds?

Voyager2002

Could anyone suggest funds that someone in my position might consider? I have around 20,000 pounds to invest, and up to now have relied on cash ISAs, but now interest rates are too low to be attractive, and I think that this is generally a good time to get some exposure to equities. However, I would prefer to avoid high-risk opportunities, even if they offer the possibility of high returns, and for this reason do not want to invest in most of the Middle East, nor in China.

And one beginner's question: if I split my money between different funds, do I end up paying more in fees and charges than if I put everything into a single, suitably diversified, investment product?

Thanks in advance for any thought-provoking replies.

And no, I am not interested in buying gold, nor wine.

Gopppers

Britannia are doing some good rates on their fixed rate bonds...

Fixed for 3 years... 5%

Voyager2002

Gopppers wrote: »

Britannia are doing some good rates on their fixed rate bonds...

Fixed for 3 years... 5%

Thanks, but I really do want something that gives exposure to global stock markets.

ses6jwg

gilts or absolute return

Mikeyorks

Voyager2002 wrote: »

... if I split my money between different funds, do I end up paying more in fees and charges than if I put everything into a single, suitably diversified, investment product?

Not if you use someone like Hargreaves Lansdowne - as they discount the initial charges to a high degree. I find it preferable to buy individual products .... as the packaged stuff generally comes with a lot of charges and restricted visibility.

This tool is quite good for selecting your blend of funds -
https://www.fidelity.co.uk/investor/guidance-planning/plan-portfolio/myplan-portfolio-quickstart.page?

........ (but 'Skip the Intro' and then kill the vocals once you get to the Results pages) I've just used it to select some less volatile funds as I've just had a chunk of cash mature and - as yourself - I've temporarily given up on cash.

HL are having some technical issues affecting their portfolios this morning - but their main site appears OK. I'm taking it you're considering transferring the cash ISAs in .... you'll certainly find that on their main site :-

https://www.h-l.co.uk/

Linton

Voyager2002 wrote: »

And one beginner's question: if I split my money between different funds, do I end up paying more in fees and charges than if I put everything into a single, suitably diversified, investment product?

If you buy from a fund supermarket fees will be small (or non-existant). Any fees there are will be based on a %, and so there should be no advantage just choosing one fund.

If you go for one diversified fund you are relying on the fund manager's diversification which may not match your needs, taking into account any other investments you hold.

Also, owning and following several varied funds will be very educational which will help you make sensible choices for future investments.

On the other hand if you really just want to put some money away and forget about it, a major diversified fund may be what you want. Even then, I would choose two rather than one.

Final suggestion - dont be too afraid of riskier investments. Out of £20K, putting say £1K in something likely to provide large but bumpy growth could be worth considering.

Linton

To answer the question posed in the title...

I wouldnt want to recommend specific funds but I suggest you look at www.trustnet.com which has detailed information on over 2000 funds. By looking at performance over the past few years you should be able to get a good idea of what sort of volatility you should expect from the various types of funds available.

ses6jwg

you could also try a few exchange traded funds if the fees concern you.

generally these will track indices such as property, indexs and commodities prices and fees will be very low.

be careful though as only yourself to blame, no fund manager, if things go awry

whiteflag_3

Voyager2002 wrote: »

Thanks in advance for any thought-provoking replies.

this might

http://www.eeafm.com/PDFs/Life_Settlements/EEA%20Fact%20Sheet%20Nov%2009.pdf

Myrmidon_J

Voyager2002 wrote:

Can you suggest some low-risk funds?

I really do want something that gives exposure to global stock markets.

I don't think "global stock markets" and "low risk" are necessarily one and the same thing! Equity markets around the world are volatile by nature and by investing overseas, you also expose yourself to currency risk.

You could try one of the many absolute return funds available, most of which have a more flexible mandate than the traditional long-only fund restricted to specific geographic regions or sectors.

However, these funds are often more complex and have higher charges.

EdInvestor

whiteflag wrote: »

this might

http://www.eeafm.com/PDFs/Life_Settlements/EEA%20Fact%20Sheet%20Nov%2009.pdf

I doubt that the OP is really interested in taking a punt on when some Americans might die via an obscure offshore investment company.

With the Keydata fiasco so recent, it's rather surporising that anyone would be interested: but I suppose the idea of low risk and high returns (ha!) springs eternal......