Any low risk ways to beat savings interest?

switch76

Any suggestions and what kind of return I would get?

I looked at a FTSE 100 tracker but it wouldn't have done very well over a 5 or 10 year period.

magpiecottage

It depends what you mean by "low risk".

Generally, investors who lose have a tendency to decide, with hindsight, that the risk was too great.

If you want absolute certainty then National Savings will give it. Tying your money up gives better returns but you have a risk of losing out if you need it sooner than you anticipated.

As a rule of thumb, the bigger the risk, the greater the potential rewards but we cannot give a definitive answer on this forum because we do not know enough about you.

However, investing on the FTSE is not generally considered low risk.

opinions4u

switch76 wrote: »

Any suggestions and what kind of return I would get?

Crystal ball.

Low risk usually equates to low return.

I looked at a FTSE 100 tracker but it wouldn't have done very well over a 5 or 10 year period.

A FTSE 100 tracker is somewhere above medium risk I'd say. Certainly riskier than an All Share Tracker for example.

What are you really trying to achieve? How much capital are you prepared to risk losing in pursuit of this?

switch76

I'm trying to increase the returns on my savings. They say that the stock market will outperform cash for most 5 year periods. I wondered if there were alternatives to a fixed rate bond with a bank.

jimjames

Something like an equity income fund if it is the income you are after. Most like Artemis or Perpetual Income are paying over 4% at the moment. The capital value may rise and fall although long term it should rise more than inflation but if you are more interested in the income then fluctuations in the value should be of less importance.

switch76

I don't need it to pay income. I just want something that will increase the money, either as capital or income or both.

StevieJ

opinions4u wrote: »

Crystal ball.

Low risk usually equates to low return.

A FTSE 100 tracker is somewhere above medium risk I'd say. Certainly riskier than an All Share Tracker for example.

What are you really trying to achieve? How much capital are you prepared to risk losing in pursuit of this?

I wouldn't have thought there would be much in it, the all share index is dominated by the same companies that the FTSE 100 index is.

opinions4u

StevieJ wrote: »

I wouldn't have thought there would be much in it, the all share index is dominated by the same companies that the FTSE 100 index is.

There would be very little in it. I was trying to demonstrate that more companies should be a better spread of risk than 100, but you're absolutely right to raise the point of weighting.

Still, if you're looking to minimise risk shoving your money in to a tracker fund is not usually the way to do it.

brian_723

I am also looking at investing a thousand pound for a year and want to beat inflation as that is my only goal and so long as i beat inflation my money would not be falling in value in fact could probably go for 2 k as the rest of my money is in tax free savings anyway .

padington

Gold is probably the least risky investment you could make. A stock market crash is on the cards if you ask me and gold should hold up well if it happens and do well if it doesn't. Its a gamble but a wise one IMO.

jimjames

brian_723 wrote: »

I am also looking at investing a thousand pound for a year and want to beat inflation as that is my only goal and so long as i beat inflation my money would not be falling in value in fact could probably go for 2 k as the rest of my money is in tax free savings anyway .

A year is nowhere near long enough to consider investing in shares - unless your risk profile is exceptionally high. For that time period a cash savings account or cash ISA would be the only real option.