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Recession proof unit trusts

edited 30 November -1 at 1:00AM in Savings & Investments
7 replies 1.1K views
gnvqsosgnvqsos Forumite
291 Posts
edited 30 November -1 at 1:00AM in Savings & Investments
I wish to invest in some unit trusts but I am apprehensive given current volatilty of market.I have a cash balance which I want to reinvest to retain taxfree status(ISA).I am inclined to the more ethical trusts but these are often sensitive to recession as firms become less sensitive in such circumstances .Any advice out there-I do not have very much faith in IFAs etc. as most are commission driven even when nominally free.

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  • dunstonhdunstonh Forumite
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    Any advice out there-I do not have very much faith in IFAs etc
    Yes. Far better to get advice from the internet from people you dont know and offer no consumer protection.
    as most are commission driven even when nominally free.

    Obviously ignoring the fact that charges on ISAs are explicit and not commission and that most funds pay the same fund based trail and the trail is influenced by the returns. The better the returns the more the IFA gets. Therefore their interests are aligned with yours.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cheerfulcatcheerfulcat Forumite
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    If you are going DIY you will have to DYOR ( do your own research ) as well. Have a look at incademy for a set of excellent basic investment courses. The bookshop there is a good source of reading material as well. The Motley Fool has some decent info in its sadly defunct Fool School, and the forums there are well worth a look too.
  • gnvqsosgnvqsos Forumite
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    I am sorry if I offend any IFAs.However allegedly many IFAs have advised people to make equity based investments rather than cash based ISAs which are not rewarded by commission.I am sure there are many who are very good;it is the system which is at fault rather than the IFAs.
  • gnvqsosgnvqsos Forumite
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    Many thanks to the bouyant feline for direct advice.
  • i strongly recommend that you educate yourself about investing rather than rely on IFAs. to do this you need time, which is of course the most valuable currency.

    ps. there is no such thing as a recession-proof unit trust.
  • cheerfulcatcheerfulcat Forumite
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    gnvqsos ( hope I spelled that correctly! ), if you are aiming to keep cash in your stocks and shares ISA without paying tax on the interest, you might like to look at gilts. That's assuming that you have a self-select ISA.

    Having said that, if you are making regular investments, it's not a bad idea over the long term to " buy on the dips ".
  • jamesdjamesd Forumite
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    Cash is an option in some S&S ISAs, but is subject to 20% tax on the interest in a S&S ISA.

    Gilts, corporate bonds, absolute return funds and zeros are some possibilities. You could also buy into very highly depressed sectors hoping that they may have done most of the possible falling. Diversification across sectors and countries is also something you should look for, choosing a range of investments so that one problem one won't be the whole picture.
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