Which type of investment for stability

IGN

Glen_Clark wrote: »

What are these darn stable funds that offer 3% - 4% per year ?

Henderson UK Property Feeder Class I - Accumulator (GBP) Can't post links, you'll have to google it.

With the exception of brexit (which was a major event) it is incredibly Stable.

You'll see the rate of return is slow and steady, like a staircase, rather than jumping and swinging all over the place.

BLB53

So I'm asking what the "safest" fund type is in terms of most stable rate of return.

For lower volatility combined with a reasonable return, I would suggest Vanguard Lifestrategy 20 or 40 which hold more bonds than equities.

The average return over the past 5 years is around 7% p.a however I have underlined the important point as there will be some years when returns are negative.

IGN

BLB53 wrote: »

For lower volatility combined with a reasonable return, I would suggest Vanguard Lifestrategy 20 or 40 which hold more bonds than equities.

The average return over the past 5 years is around 7% p.a however I have underlined the important point as there will be some years when returns are negative.

Thanks. I just had a quick look and the average return might be around 7% but looking at the performance history it's still very choppy. Dips of up to 20% sometimes.

As I said in my first post I'm looking for a fund that is stable, even if the returns are only a few percent. Essentially I'm looking for a glorified savings account, naturally with some risk though as you'd just tell me to put it in a savings account.

Pincher

IGN wrote: »

So do you mean investing in a single property or investing into a property investment fund? I should have mentioned it but I meant safest investment fund types.

Property generates income, while the price of the building yoyos.
If you are not selling, it doesn't really matter what price it is.

My properties went through the 30% drop around 2009, but kept paying rent, and now have more than recovered the 30%.

Going through funds doesn't make it more risky. On the contrary, you are spreading the risk across a lot more properties than you can possibly cover yourself.

This one is rather stable, and high yielding.

http://www.hl.co.uk/shares/shares-search-results/s/standard-life-property-inc-trust-ord-1p

Commercial properties, not domestic. Missed the Brexit dip, so I'm hoping to jump in when there's a big recession, so commercial properties tank. It's a company share, not a fund.

tacpot12

The F&C Short Duration Bond Fund is the best performing "zero risk" fund on TrustNet (The SEDOL is B1W6XS1)

The return will be positive, if held in a low cost platform, but you can't get 1% from an investment with no volatility at present.

Broken_Biscuits

IGN wrote: »

Hi everyone, just curious as to which type of investments are considered the most stable. So they may only may 3% - 4% per year or some but they're pretty darn stable. I know nothing is guaranteed but gaining 3% or 4% each year is more favourable to me than potentially gaining or losing 15%.

So what type of investment generally speaking, offers the most stable returns?

Thanks.

What type of investments?
All of them.
As in all of them at once.. when somethings go up the others may go down, ideally making a stable return.

Try googling "balanced portfolio" or "asset allocation".


Although reading some of your later replies, it seems you want no volatility whatsoever. You may want to look at zopa or ratesetter, once you have filled the high interest current accounts.

enthusiasticsaver

I am not sure you could call any investment stable and completely safe. I have a vanguard ls60 which goes up and down but the movements don't matter in the short term as I don't need to sell. The only really stable asset is cash.

Eco_Miser

IGN wrote: »

Yes but these types of accounts give you 3% or 5% but only up to a small amount like £2000 or £3000 which is tiny. Plus they often require you to make regular large deposits into the accounts so it's hard to have 4 or 5 of these accounts active at the same time.

I agree the amount in each is tiny, (except the £20k in Santander) but you can total over £50k in them. The regular large deposits (£1500 max, many much less) don't have to be single payments, and don't have to stay in the account (except some regular savers, which are designed for saving from income), and the transfers can be automated, so funding them is not hard at all.

IGN

Eco_Miser wrote: »

I agree the amount in each is tiny, (except the £20k in Santander) but you can total over £50k in them. The regular large deposits (£1500 max, many much less) don't have to be single payments, and don't have to stay in the account (except some regular savers, which are designed for saving from income), and the transfers can be automated, so funding them is not hard at all.

Yes but the interest is only up to the max of £3000 or so. Even if you have like 4 or 5 high interest current accounts and maxed them out, you'd probably only get about £800 interest a year. I mean sure it's free money but the money you'd be maxing them out with could be invested for much better returns.

bigadaj

IGN wrote: »

Yes but the interest is only up to the max of £3000 or so. Even if you have like 4 or 5 high interest current accounts and maxed them out, you'd probably only get about £800 interest a year. I mean sure it's free money but the money you'd be maxing them out with could be invested for much better returns.

But you say you want no risk?

These accounts are worthwhile for your emergency funds, beyond that you need to take on risk, for higher returns at least, and invest in shares, funds, bonds, p2p, property, commodities, etc etc