Multi asset funds

bostonerimus

If you have a definite spending plan for the money in 5 years time then I would not use equities. I'd put it into a 5 years savings bond or maybe a 5 year savings bond ladder if you want a bit of flexibility. Preservation of capital, rather than growth, is the most important thing with money that is earmarked for near term spending.

Bluenose123

Thanks seems asset funds not a great idea in my position. Any suggestions on best bonds for 5 years . Also would appreciate any advice on p2p , appreciate they come with a risk but it does seem quite low risk and higher rates achievable

masonic

Bluenose123 wrote: »

Thanks seems asset funds not a great idea in my position. Any suggestions on best bonds for 5 years . Also would appreciate any advice on p2p , appreciate they come with a risk but it does seem quite low risk and higher rates achievable

The best savings accounts are summarised here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
You might be better off fixing for less than 5 years in case interest rates rise sharply (it seems unlikely but it is a risk). A 2 year fix offers a happy medium, while allowing you to potentially fix at a higher rate at maturity.

Like stockmarket investments, P2P may appear low risk at the moment because we have been in a growth part of the economic cycle, but P2P is medium-high risk and could lock up your money for a few years longer than you intended. It's not really suitable for money you want to use to buy a house in 5 years.

Bluenose123

Bonds it is then unless of course I can find a cheap buy to let that I would be happy to live in , in five years time

Aminatidi

Bluenose123 wrote: »

Thanks seems asset funds not a great idea in my position. Any suggestions on best bonds for 5 years . Also would appreciate any advice on p2p , appreciate they come with a risk but it does seem quite low risk and higher rates achievable

I was tempted by P2P until someone pointed out the bleedin obvious which is that unlike NS&I where you may get 2% but 100% of your savings are guaranteed, with P2P you may get 5-6% but none of your investment is guaranteed.

Would you risk £100K for 4% - I know I wouldn't.

You've stated you want to know that there is a minimum of £100K there in 5 years.

To me that means only savings products are suitable.