20k spoilt for choice

joesan

hi ppl!!!
I got 20k lying in my ING account. I was planning using currencies direct to transfer it to my canadian account but with exchange rates so low at the moment its not in my interest i think. So what should i do with it?? I already got my maxi isa for 2005. I dont mind putting the money in for the long haul and i dont mind high risk investments.

Currently i am looking into guarenteed funds, forgot what exactly you call them. the ones where you invest for like 6 years and it offers some guarentee on capital. The only problem with these is im not sure if theres much value in them anymore. A few years back when i did invest into these the payback was amazing compared to now. so I am kinda put off by it at the moment.

The other thing i am looking into are unit trust/funds. I already hold about 12 funds so i guess i could increase my holdings or buy new ones?

Premium bonds also crossed my mind bt again i see little value in them, although i do have 3k worth of them.

any other ideas??

dunstonh

Currently i am looking into guarenteed funds, forgot what exactly you call them. the ones where you invest for like 6 years and it offers some guarentee on capital. The only problem with these is im not sure if theres much value in them anymore. A few years back when i did invest into these the payback was amazing compared to now. so I am kinda put off by it at the moment.

GEBs may have done well during the boomb periods of the 90s. However, direct equity holdings in unit trusts/ITs would have done better. If you already accept the risk associated with equity investments, you should look at those.

Basically you are offering a conflict: "Currently i am looking into guarenteed funds" and " I dont mind putting the money in for the long haul and i dont mind high risk investments."

GEBs are the lower risk way of getting access to stockmarket performance. However, because of those guarantees, you do not get the full returns you would have got on unit trusts/OEICS/ITs.

I diversified portfolio covering a range of sectors which averages out to your personal risk profile would be a more sensible approach.

joesan

thanks for feedback... some of the GEB that i have purchased are very good.... well at least say better then any trackers 200% of the ftse rise with no maximum and 50% downside protection. there are some which are not as good obviously... recently i invested into a commodities GEB which also returns 200% of the rise in each commodity with no up limit. you are right to a certain extent in which some individual funds would and will perform better then these GEB but you have to know that the majority probably wont. If you look back a few years when the bear market was in full swing any kind of guarantee on equity was a bonus...

What funds and sectors would you recommend?

Kerry_o'keefe

My wife is about to get an inheritance of 40K. Initially putting it into account paying 5ish % (curently she does not work). Then thinking of putting some into ISA (currently have Perpetual High Income and Jupiter Income - more of the same ) AS the some of the money will be used for daughters university fees etc (if she goes - not for 4 years though). What can we do to maximise investments etc - whilst balancing off against other options - daughter,pay more off mortgage,retirement planning etc. Any advice much appreciated.

Kerry