'safe(r)' funds - short/med term

Mistermeaner

Hi

Anyone have any recommendations regards some funds which (while obviously coming with some risk) are perhaps safer bets for modest growth above the cash deposit type savings?

Im thinking of funds perhaps suitable for a 3-5 year horizon / for a jisa.

Ive read a bit about absolute return funds but feedback is not brilliant.

Is the vanguard 20 or equivalent a good bet?

Ryan_Futuristics

Bond funds (e.g. Vanguard 20) may be vulnerable to interest rate rises - assuming we get 3-5 years of rate rises starting next year, any gains from income *may* be cancelled out (or worse) by losses in capital

No one's quite sure who that will play out yet

Absolute return funds are a mixed bag - many are bonds funds combined with various equities strategies ... seems a bit like betting on a horse

Although you can't keep it in an ISA yet, for me, the only alternative investment that's really appealed recently is P2P lending via Funding Circle

7.1% after fees and bad debts seems achievable ... Although there are unknowns with P2P lending (being so new) it beats bonds funds for me (where you know there are looming problems)

Otherwise a bond ladder seems a reasonable option - but with trading fees and the need for diversification, you do have to commit quite a bit of money ... If you're talking £1-10k, I'm not sure it's worth buying bonds ... And the risk/reward profile today makes them questionable options

Totton

These may be worth a look -

Ruffer,
Personal Assets and perhaps
RIT Capital Partners

My experience of absolute funds leads me to avoid them, if I wanted an OEIC to do that business then I'd be looking at Troy Trojan (soft-closed) or perhaps Troy Income .

The VLS 20% is a very tame offering full of fixed assets, I would't want that at the moment but it may be better than holding cash.