What to do with £50k

jamesd

cheerfulcat wrote:

High yield bonds are at the high risk end of the bond market anyway ( the term " junk " is not used lightly ); right now they are arguably way overvalued, which makes them even riskier. The Baillie Gifford fund manager may use derivatives as well, which again adds to the risk. All in all I don't think that "low volatility " is going to be a characteristic of this fund...not to say that it's a bad choice, just that I personally would not want to see it making up more than a small part of a diversified portfolio.

I ageee, I didn't mention that to be one of the lower risk bonds, more to be less volatile than typical equity choices. A quick look at the history shows that it does move with the UK stock market. And if it's actually over-valued, it certainly could fall significantly.