75k investment

kokolino23

Hello,
I'm pretty sure this has been covered before but every day/month/year it's something new in the world so I'm hoping to get some serious advice on this matter.
I've got £75k in the bank and I'd like to invest them to get the best return out of them.
I'm not willing to become a landlord because it's too much hassle for me. I'm busy enough with my work.
I'd like a low risk investment with a decent return, whatever that might be. Surely should be higher than the bank.
THANKS A LOT in advance

Rafter

Kokolino,

It all depends what you mean by low risk and decent return and what your investment horizon is (how long you are expecting to hold the investment for)

With very low risk savings accounts protected by the FSCS or national savings you are very unlikely to beat inflation.

As you start going 'up the risk curve' you are investing in bonds, property or shares where you may not get all your money back if things go wrong, but over the long term investors generally beat cash so you will be better off.

However, there are concerns that many markets including property and share prices are currently overvalued, so if you plough all your savings in right now, it could take a long time for you to recover and start to make a return.

My suggestion would be to decide how much you are prepared to 'risk' and then look at low cost tracker funds or investment trusts and use your ISA allowance. You could also take a look at peer2peer lending but remember you are taking risk and although the returns look attractive you could lose if some of the loans that you fund are never repaid.

Good luck.

R.

xylophone

I'd like a low risk investment with a decent return,

Wouldn't we all!

Surely should be higher than the bank.

Possibly - but then again possibly not!

You can get a reasonable return without risking your capital by using multiple current accounts but not for the whole £75,000 - you might manage between 3-5% (gross) on 2 TSB Classic Vantage, 3 BOS Classic Vantage, 1 Nationwide Flex account, one Lloyds Club, one Santander 123 etc.

If you are married you could double up, use joint accounts etc.

After that, it's savings accounts of one kind or another.http://www.thisismoney.co.uk/money/saving/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

In the long term you could do much better in stock market based investments (particularly in respect of inflation protection) but this requires acceptance that capital will fluctuate, possibly alarmingly at times.