Low Risk AJ Bell Funds/Investments with minimal charging

IAMIAM

Are there any? Want to put 10-15k into my S&S ISA but want something with minimal charging and low risk so I can withdraw it over the next year or two in a couple of smaller lump sums....I don't mind paying the odd couple of pounds to access. Don't want to open another instant access savings account elsewhere you see. 

eskbanker

If it's money that you want to withdraw "over the next year or two" then investing it doesn't seem the obvious route - that's not to say that an instant access account is the answer, but fixed term and/or notice deposit accounts are likely to be more applicable than investments, unless you can stomach some potential capital loss?

Linton

There  are no investments that are certain not to decrease in value in £ terms, never mind real ones, over a period of 1-2 years .  Some form of savings account is your only option.

IAMIAM

So there are no bonds that are 99% full proof to not loose major value over the next year or two

grumiofoundation

IAMIAM said:

So there are no bonds that are 99% full proof to not loose major value over the next year or two

By bonds presume you mean investment (rather than savings bonds).


As with any investment, no, not guaranteed not to lose value.

wmb194

IAMIAM said:

So there are no bonds that are 99% full proof to not loose major value over the next year or two

*lose.  Yes, gilts, in nominal terms anyway, but you'll find the rates unattractive plus there will be a dealing commission to buy them and AJ Bell account fees, though no dealing commission on redemption if you hold them to maturity. You'd probably be better off finding a fixed rate savings bond with an appropriate term and/or keep the money in instant access accounts and chase the best rates.

https://markets.ft.com/data/bonds

masonic

IAMIAM said:

So there are no bonds that are 99% full proof to not loose major value over the next year or two

A few options to illustrate the sort of risk and returns you might see in the lower risk end of the bond fund spectrum:

Remember that you'll be paying a platform fee which will eat into any returns you do get.

The question is, will you get returns like Feb 2014-2016, Feb 2017-2019, or a continuation of the recent trend.

george4064

You could look to buy some UK government gilts, but ones maturing in 1 to 2 years won't give you much return overall.

wmb194

george4064 said:

You could look to buy some UK government gilts, but ones maturing in 1 to 2 years won't give you much return overall.

Yes, see my post above, c.2% for the two year benchmark at the moment.

older_and_no_wiser

For such a short duration (1-2 years), you may be better just going for a fixed rate savings account. That's a guaranteed 3% return with Ford Money as an example. Anything investment based isn't guaranteed and could be risky over less than 5 years.