Best way to invest

Clownfish68

Hi guys,
I'm due some money due to personal injury potentially in the region of £60k. Due to Covid how can I invest this. I'm generally risk adverse and do not want to loose my capital investment. During the last finacial crisis I invested in premium bonds which I am considering again although I know this is pretty much a gamble with no guarantee of returns but I made more money than other investment options that time which was obviously due to luck. 

What are my other options though since interest rates dont appear to look that great at the moment due to covid. This is the reason I'm considering bonds again until better interest rates become available.

Thanks

John

dunstonh

I'm generally risk adverse and do not want to loose my capital investment.

Which risks are you averse to?

You say you dont want to lose your capital but inflation will be eroding it unless you make more than inflation.  

During the last finacial crisis I invested in premium bonds which I am considering again although I know this is pretty much a gamble with no guarantee of returns but I made more money than other investment options that time which was obviously due to luck. 

So, you will be losing money in real terms.

Every option has some risks.  There is no such thing as risk free.

eskbanker

dunstonh said:

I'm generally risk adverse and do not want to loose my capital investment.

Which risks are you averse to?

You say you dont want to lose your capital but inflation will be eroding it unless you make more than inflation.  

During the last finacial crisis I invested in premium bonds which I am considering again although I know this is pretty much a gamble with no guarantee of returns but I made more money than other investment options that time which was obviously due to luck. 

So, you will be losing money in real terms.

While the overall message is obviously true, the 'average luck' PB return has been above CPI since the start of the pandemic, so the (median) average PB holder will have kept ahead of (that measure of) inflation over that timeframe, although clearly there is no guarantee that this will continue....

Albermarle

You mention 'investing' but what you are really talking about is saving in risk free products . In this case you will always get low returns .
Investing means risk based products such as share funds etc .which is really the only way to beat inflation.
Do you have a pension? , that can often be a good place to invest , depending on what type it is . 

cricidmuslibale

eskbanker said:

dunstonh said:

I'm generally risk adverse and do not want to loose my capital investment.

Which risks are you averse to?

You say you dont want to lose your capital but inflation will be eroding it unless you make more than inflation.  

During the last finacial crisis I invested in premium bonds which I am considering again although I know this is pretty much a gamble with no guarantee of returns but I made more money than other investment options that time which was obviously due to luck. 

So, you will be losing money in real terms.

While the overall message is obviously true, the 'average luck' PB return has been above CPI since the start of the pandemic, so the (median) average PB holder will have kept ahead of (that measure of) inflation over that timeframe, although clearly there is no guarantee that this will continue....

Except for the fact that any prize money won cannot be added to a maximum holding of £50,000 of course, consequently the £50,000 cannot ever grow even for a very short time period at a higher rate than inflation because it always remains at £50k. Naturally some of us are fortunate at the moment (but very probably not for much longer) to have a separate savings account paying more than CPI inflation to place accumulated prize money won in, if that is what we wish to do with our winnings, but that account will definitely not be with NS&I!

eskbanker

cricidmuslibale said:

eskbanker said:

dunstonh said:

I'm generally risk adverse and do not want to loose my capital investment.

Which risks are you averse to?

You say you dont want to lose your capital but inflation will be eroding it unless you make more than inflation.  

During the last finacial crisis I invested in premium bonds which I am considering again although I know this is pretty much a gamble with no guarantee of returns but I made more money than other investment options that time which was obviously due to luck. 

So, you will be losing money in real terms.

While the overall message is obviously true, the 'average luck' PB return has been above CPI since the start of the pandemic, so the (median) average PB holder will have kept ahead of (that measure of) inflation over that timeframe, although clearly there is no guarantee that this will continue....

Except for the fact that any prize money won cannot be added to a maximum holding of £50,000 of course, consequently the £50,000 cannot ever grow even for a very short time period at a higher rate than inflation because it always remains at £50k.

The point still stands that, even with £50K, the 'average luck' PB return currently outperforms CPI - the fact that this can't be reinvested to achieve compounded growth doesn't actually negate that.