Index Linked Gilts?

Wobblydeb

I am currently planning my new SIPP, and am researching bonds/gilts and deciding upon a portfolio.

What do you think of including index linked gilts in order to balance a portfolio? (I am planning about 10% of a high risk high proportion equity portfolio). I originally started with bonds, and then read that they tend to correlate more closely with equities than gilts.

Then I decided that inflation could be a factor in the coming months / years and tended towards index linked gilts.

Is this sensible thinking, and what gilts / bond funds do you hold?

Thanks

purch

If you have a SIPP, then a direct holding of an appropriate Index Linked Gilt might be the better option.

[Deleted User]

We have a large holding of index linked gilt TR40 in my dh`s sipp which I manage. It is all part and parcel of balancing risk and assets

Wobblydeb

purch wrote: »

If you have a SIPP, then a direct holding of an appropriate Index Linked Gilt might be the better option.

Excuse my naivety but would this be suitable for monthly contributions, and if so how do I go about finding a list?

purch

No.

If you already had a significant fund size, and wanted to diversify then buying a Bond directly would make sense.

If not, then a collective Fund would be the only option.