Which type of investment for stability

BLB53

I mean sure it's free money but the money you'd be maxing them out with could be invested for much better returns.

You cannot have it all...either you have savings and v. low return or invest for the probability (but no guarantee) of better return in which case there will inevitable be more risk on a month by month or year by year basis because equities, bonds, commodities, gilts etc. all fluctuate and are subject to the global markets.

As I suggested, one of the lower risk options for a better return would be the Vanguard LS 20 but as you probably know, you need to be invested for a minimum of 5 yrs to have a good chance of a better return than cash.

Good luck with your decision!

Pincher

If it was the 1980s, I would have said go With Profits with Equitable Life.

And I DID :eek:

Safe bets are just white swans before they fly through a smog.

jimjames

Glen_Clark wrote: »

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

I think some of the investment trusts paying that are pretty stable. Downside is that they don't go up as much either.

redpete

- where can I get the most stable return
- cash in current accounts
- but I can't put enough in those
- yes you can
- but the returns are too low
- try equity/bond/property funds
- but they're too volatile

- try the moon on a stick.

Dird

IGN wrote: »

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.

You asked for 3-4% returns without volatility*, you were offered 3-4% returns. How much money do you actually have to save/invest? Over £100k?

IGN wrote: »

Henderson UK Property Feeder Class I - Accumulator (GBP)
With the exception of brexit (which was a major event) it is incredibly Stable.

A stable -0.14% annual loss over the last 10 years

george4064

IGN wrote: »

I mean there are so many different types of funds.

Index trackers, equities, bonds and guilts, property etc. For example equities may be more volatile than bonds, but equities offer greater returns and losses.

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

Safest fund type with the most stable rate of return (albeit a low return) would be a cash fund. L&G Cash and BlackRock Cash are a few I know off the top of my head, they will generally return about +0.2% year on year.

dunstonh

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

Not just brexit. Credit crunch and just about every recession and property value drop for the last 50 years.

IGN

Dird wrote: »

A stable -0.14% annual loss over the last 10 years

How has that fund lost 0.14% over the last 10 years? From the performance chart I looked at, the returns were:

2011/12 - 1.96%
2012/13 - 8.32%
2013/14 - 11.92%
2014/15 - 10.70%
2015/16 - -5.5%

Where are you seeing this -0.14%? If you're including the 2008 market crash that's a little unfair as pretty much everything lost value. Those huge catastrophic events skew to true value of a stock / fund.

Freecall

IGN wrote: »

Those huge catastrophic events skew to true value of a stock / fund.

I think that you really need to explain that comment.

Having invested over the years through multiple 'huge catastrophic events' as you put it, they are all ultimately embedded in my total returns.

There could be such an event this week (today even). How would the 'true' value my investments not be affected by such market events?

dunstonh

IGN wrote: »

How has that fund lost 0.14% over the last 10 years? From the performance chart I looked at, the returns were:

2011/12 - 1.96%
2012/13 - 8.32%
2013/14 - 11.92%
2014/15 - 10.70%
2015/16 - -5.5%

Where are you seeing this -0.14%? If you're including the 2008 market crash that's a little unfair as pretty much everything lost value. Those huge catastrophic events skew to true value of a stock / fund.

You dont just look at mostly growth periods to decide the volatility of the fund. You have to include negative periods as well. You have failed to include any notable negative periods.