why go with guarenteed growth bonds and not a building society fixed year

jamesd

Here's the trustnet list sorted by yield. You'll find twelve funds with yields in the range 8.03 to 12.78%, though not all are bond funds. Another twenty have yields of at least 7%.

The popular Invesco Perpetual Monthly Income Plus fund, an 85%:15% bond:equity mixture, reports a yield of 7.4% and it's a decent choice for someone who wants income with inflation protection.

Charterhouse

Ah ok. Yeah, high yield funds basically. The invesco fund is nearly 60% in non-investment grade and equities. Not sure I'd recommend that to W&I.

EdInvestor

merl1955 wrote: »

I think from what was said is put some of the lump sum into a fixed account either for 1yr 2yr 3yr 4yr 5yr ( I suspect we may either do 3 or 5 yr) which will say bring the total back to the original £70,000 and then use the other amount to invest in a diverse group of investors e.g. government gilts corporate bonds property etc., then hopefully the money made will actually give us the growth we are looking for, without losing the orignal sum.

Way to go.:)

Now all we have to do is sit down and sort out how much this would cost us. I know from reading your blogs that we have to ask but when we tried it wasn't actually that clear how much it would cost us.

Baffling the client seems to be a popular strategy :rolleyes:

If you feel confident you can make the fund selection yourself from the info you have gathered so far, suggest you dump the IFA and use HL thus saving yourself 5% off the the initial charge straight off plus a bit more off the commission.

Every little helps.

jamesd

Charterhouse wrote: »

Ah ok. Yeah, high yield funds basically. The invesco fund is nearly 60% in non-investment grade and equities. Not sure I'd recommend that to W&I.

I would as part of a mixture of investments. I wouldn't want anyone to have it as the only investment, though. Diversification is the nearest thing there is to a free lunch in the finance world even if it is one of the more popular income funds in the UK.

atypical

jamesd wrote: »

Perhaps you might consider building your own guarantee?

I came across this today and wondered what others thought of it in comparison to the DIY or 'normal' structured products. It seems to offer greater upside (200% of any gain with a cap) without increasing the downside (guarantee lost if FTSE falls 35% at any point) to the same extent. Or am I being naive? Also, what affects the market price?