£125k - Best Option for Short Term Capital Growth?

iantojones40

Righto, I'll try and keep this to the point...
Currently got £125k that I'd like to invest for probably no more than 1-2 years and I'd ideally like to get 5-10% capital growth on it, I'm assuming income isn't really relevant when only investing for such a short period.

I'm relatively open to risk so I fully realise my investment could go down... if it did go down I could possibly remain invested for longer, but ideally it would only be for a maximum of 2 years, (or if it achieved 10% whichever comes sooner)

Are equity funds my best risk-reward compromise? The obvious one being Woodford?
As a complete novice is it worth seeing an IFA?

Thanks in advance!

HappyHarry

For 1-2 years, it would be unusual to invest in anything apart from cash deposits.

There are plenty of discussions on the board about how to get returns on cash deposits. Between 5% - 10% over a two year period should be readily achievable.

If you were to invest in equity funds, you could see a drop of 35% to 40% or more over two years. Are you prepared to see your £125k turn into £75k in your time frame? If not, the equity funds really are not for you.

iantojones40

Thanks for the reply, by cash deposits do you just mean regular bank accounts?
The only one I'm aware of that comes close to 5% is Santander 123 and that's only for up to £20k
I thought most of the others required your money to be tied up for 3-5 years to get that kind of a return from what I've seen?

HappyHarry

Yes, regular bank accounts.

There are plenty of discussions on this board about how to maximise interest on savings. Try these for starters:

https://forums.moneysavingexpert.com/discussion/608697

https://forums.moneysavingexpert.com/discussion/5370758

https://forums.moneysavingexpert.com/discussion/5374614

kidmugsy

£50k to premium bonds and the rest scattered across the bank accounts.