Safe fund beating savings accounts?

sebtomato

Albermarle said:

I think maybe best to concede that your ambition to get 2% pa, almost risk free, is a lost cause . Same as with your previous attempt to get HL to reduce their platform fee . 

My previous attempt to get HL to reduce their platform fee? Strange way to summarise. I asked them if they would, and I asked other people in here if they had managed to negociate. HL said no, at least I asked. As a result, I did move a large portion of my investments to other platforms.

eskbanker

sebtomato said:

Site likes Trustnet give a risk rating, but it's hard to know what it means.

Explained at https://www2.trustnet.com/learn/learnaboutinvesting/FE-Risk-Scores.html

kinger101

RG2015 said:

kinger101 said:

sebtomato said:

How depressing. So to have a chance to earn 2 or 3% returns per annum nowadays, you need to be willing to have capital going down by 10%??
What's left for investors? 

The headline interest rate isn't that important anyway.  It's the margin between that and the inflation.  While this has been negative in recent times, it quite possible that April's CPI figure might reverse this.  

Have you measured your personal inflation rate? 

Ow, saucy.

I don't think any two years would have the same "basket of goods" to be honest, but at the moment, my spending patterns have changed enormously re. the current situation.  

RG2015

kinger101 said:

RG2015 said:

kinger101 said:

sebtomato said:

How depressing. So to have a chance to earn 2 or 3% returns per annum nowadays, you need to be willing to have capital going down by 10%??
What's left for investors? 

The headline interest rate isn't that important anyway.  It's the margin between that and the inflation.  While this has been negative in recent times, it quite possible that April's CPI figure might reverse this.  

Have you measured your personal inflation rate? 

Ow, saucy.

I don't think any two years would have the same "basket of goods" to be honest, but at the moment, my spending patterns have changed enormously re. the current situation.  

Oops, but they do say that size isn't everything. 

It did get me thinking though so I started another thread.

https://forums.moneysavingexpert.com/discussion/6149195/erosion-of-savings-by-inflation#latest

Prism

If you were ok that you might end up with less than you start with, something like a 20% allocation to a global equity fund and 80% in cash would be low(ish) risk. The equities would need to make in the region of 10% per year though.

Sailtheworld

If the OP is willing to take more risk but can't tolerate any year with negative returns there isn't really a solution.

There's always the mortgage.....

kinger101

There's always student accommodation, fine wines and airport carparks muddy fields 30 miles from the nearest airport.
I'll get my coat.....

sebtomato

eskbanker said:

sebtomato said:

Site likes Trustnet give a risk rating, but it's hard to know what it means.

Explained at https://www2.trustnet.com/learn/learnaboutinvesting/FE-Risk-Scores.html

Thanks, but not sure it means much to the average person likes me.
FE Risk score is relative to the volatility of leading 100 shares in the UK, so the FTSE100 would have a score of 100...
A score of 30 would therefore indicate a volatility 30% of the FTSE100.
Score is calculated of course on past performance (3 year rolling average).
Doesn't really translate well into actual risks to end customers like me...

sebtomato

RG2015 said:

kinger101 said:

sebtomato said:

How depressing. So to have a chance to earn 2 or 3% returns per annum nowadays, you need to be willing to have capital going down by 10%??
What's left for investors? 

The headline interest rate isn't that important anyway.  It's the margin between that and the inflation.  While this has been negative in recent times, it quite possible that April's CPI figure might reverse this.  

Have you measured your personal inflation rate? The chances are that it will differ from CPI, CPIH, RPI or any other generalised measure.

I guess your point is that everybody has an actual different inflation rate based on their consumption patterns. How do you measure it anyway?

RG2015

sebtomato said:

RG2015 said:

kinger101 said:

sebtomato said:

How depressing. So to have a chance to earn 2 or 3% returns per annum nowadays, you need to be willing to have capital going down by 10%??
What's left for investors? 

The headline interest rate isn't that important anyway.  It's the margin between that and the inflation.  While this has been negative in recent times, it quite possible that April's CPI figure might reverse this.  

Have you measured your personal inflation rate? The chances are that it will differ from CPI, CPIH, RPI or any other generalised measure.

I guess your point is that everybody has an actual different inflation rate based on their consumption patterns. How do you measure it anyway?

See my link a few posts back.