Max return (risk) on ISA

pavane

I have 15k in a cash ISA with a pitiful 1.25% return (Lloyds). All 15k was "invested" this year- initially 5,940 in May, then a further 9,060 in July once NISA came into effect. (Please don't critise, I know it's silly to have opened it, it's done now)

While there are cash ISAs with slightly better rates, I'd like to maximise this as a short-medium term (less than 5 years) investment rather than yet another savings account. I don't hold/trade stocks but would like to start so converting this from cash to S&S seems logical to benefit from the tax savings.

I have life savings of just over 100k in FSCS covered accounts and while I'm not rich, I'd live just fine if I were to lose all 15k. I don't mind risk proportional to return and I'm tired of saving at rates that are often just above inflation.

I'm currently saving about 20k a year so could invest the full 15k in each successive year. However, the odds are I will leave the UK within 2-5 years. (I rent and am not interested in entering the property market, definitely not now, in London!)

How would you suggest I proceed? Specifically which institution to transfer to and what to buy. Ideally, I'd be looking for something that may see value triple in 2-3 years at the risk of losing it (the 15k) all. Is there any high risk fund, etc. that would come close to this or should I just pick individual shares myself?

ColdIron

This look a near duplicate of this post

I'd be looking for something that may see value triple in 2-3 years

What you are asking isn't really investing, more like speculation, you may as well consider casinos or gentlemen of the turf

Totton

To triple in that time you would probably need individual shares and a huge dose of luck. For funds then perhaps something in Biotech may be a way to double up although the sector isn't doing so great just now, an alternative might be something such as Russia or Ukraine, all very risky though.

masonic

pavane wrote: »

While there are cash ISAs with slightly better rates, I'd like to maximise this as a short-medium term (less than 5 years) investment rather than yet another savings account.

Over a timeframe as short as 5 years, the odds of a sensibly constructed S&S portfolio beating the returns from cash won't be substantially better than 50%.

However, with your requirement to invest in something that has the potential to triple within 2-3 years, that makes it much harder. Just 11 funds out of 3400 (OEICs and ITs) generated returns of 100% or more in the past 3 years (none tripled in value and some would consider the past 3 years to have been pretty good ones generally), so your chances of picking something that would triple your money in the next 3 years will be very slim indeed, less than 1%.

Compare that with the game of roulette, where you could double your money with odds just under 50%. That would give you a somewhat greater chance of losing everything, but a much higher chance of reaching your objective.

pavane

Sorry about the other thread, I was in preview mode, not sure how/why it got posted. I've made an edit, hopefully a mod will lock/delete it.

Yes, achieving 25-50% annual growth is high risk and the likelihood now compared to 3-4 years ago is even less although I'm not quiet sure I'd classify it as pure speculation/gambling. I do, however, get the suggestion that I may as well put it all on black and spin.

I suppose what I was really trying to ask was whether there is any available tool I could buy that would effectively be for such a high risk/return scenario- something in junk bonds or shares in tech/pharma/biotech that may just be the next big thing. What's the most risky off-the-shelf ISA offering out there?

masonic

pavane wrote: »

I suppose what I was really trying to ask was whether there is any available tool I could buy that would effectively be for such a high risk/return scenario- something in junk bonds or shares in tech/pharma/biotech that may just be the next big thing. What's the most risky off-the-shelf ISA offering out there?

Here are some funds and investment trusts sorted by FE risk score. Looks like several of the prominent speculative sectors are represented: gold, Russia, biotech, single country emerging markets. Some of these should be good for a punt, although I don't fancy your chances personally.