Cash alternative safest investment

kidmugsy

nxdmsandkaskdjaqd wrote: »

I do have other asset classes (95% equities)

Good grief; at least buy a bit of gold and silver.

dunstonh

I do have other asset classes (95% equities), but looking at putting some cash into something else with a low risk.

Someone with 95% equities is not low risk. Moving 5% into bonds is not really going to make a noticeable difference.

Is there any reason you are segmenting your holdings like this rather than looking at an overall portfolio?

nxdmsandkaskdjaqd

dunstonh wrote: »

Someone with 95% equities is not low risk. Moving 5% into bonds is not really going to make a noticeable difference.

Is there any reason you are segmenting your holdings like this rather than looking at an overall portfolio?

I accept that 95% in equities is high risk and I accept that.. I have come into some spare cash which I would like to get a better return for than the 1 1/4 % offered by the banks/BS.

I am maxed out on my ISA, so was looking at investment outsie of that wrapper.

I am still learning about this investment stuff and believe that I have a well diversified portfolio which would benefit from some low key/risk investments.

nxdmsandkaskdjaqd

steampowered wrote: »

It is less risky to be invested in a range of bonds through a fund, rather than buying them directly, since the insolvency of one company would only damage a small part of the fund.

Is there a tracker fund for short term/index linked gilts?

dunstonh

I am maxed out on my ISA, so was looking at investment outsie of that wrapper.

You are going to bed & ISA in future though aren't you?

With the new dividend allowance, it may be better to hold some of the equity funds in the GIA rather than the ISA.

I am still learning about this investment stuff and believe that I have a well diversified portfolio which would benefit from some low key/risk investments.

Bringing in bonds will reduce the short term volatility and reduce the long term returns. 5% is not exactly going to make much difference though. If you can already handle the losses on a 100% equity portfolio then you may as well stick with it if you have the timescale. If risk is a concern then more than 5% is really needed to make a meaningful difference.

Glen_Clark

dunstonh wrote: »

With the new dividend allowance, it may be better to hold some of the equity funds in the GIA rather than the ISA.

What's a GIA:huh:

dunstonh

GIA = general investment account. It is the generic term for unwrapped holdings. Some providers have adopted it for their account whilst others still have their own marketing names (collective investment account, investment funds account etc).

coyrls

nxdmsandkaskdjaqd wrote: »

Is there a tracker fund for short term/index linked gilts?

I've not been able to find one. There are ETFs for short term gilts but not, as far as I know, for short term index linked gilts.

mvarrier

If you want something like bonds, with better returns than cash, P2P is worth investigating

bowlhead99

coyrls wrote: »

nxdmsandkaskdjaqd wrote: »

Is there a tracker fund for short term/index linked gilts?

I've not been able to find one. There are ETFs for short term gilts but not, as far as I know, for short term index linked gilts.

Well, here's a list on the UK debt management office website of all the index linked gilts in which a fund - or you yourself - could invest.

(here)

Take a look at all the ones which mature in, say, the next 3 years i.e. before end of August 2019. Do you think it's worth setting up an exchange traded fund with the sole objective of investing in that portfolio?

"Hey guys, come and put your money in my fund. Only half a percent management fee plus all the operating and listing costs. What do you mean it seems like a sham!?! You get great exposure to the entire universe of qualifying assets within this collective scheme - it's tracking our custom index of all UK index-linked gilts maturing in the next three years! And internal rebalancing costs between all the gilts are negligible. How can we say that? Well, because the whole index is one gilt."