To be a lazy investor...

fimonkey

I like the idea of 'funds' as these appear to be somewhere you put your money and someone else manages it (ie moves it in and out of various stocks and shares etc).Am I right?

In that case, If I have 3K to invest for 3 years, and I want a higher return than just having it sat in a savings account, and once I've invested it I don't want to think about it until the 3 years are up.... IS a 'fund' the right place for it?

Also, can I get a higher return than in a savings account but still be 'safe'? (I suppose my risk profile would be cautious, but willing to take a punt with 3K).

In particular, i'm thinking of the top three funds as recommended by various broadsheets.

1. Invesco perpetual income (or high income, what's the difference please)?
2. Jupiter Income
3. One other (any suggestions? Or perhaps both Invesco funds)

Aegis

fimonkey wrote: »

I like the idea of 'funds' as these appear to be somewhere you put your money and someone else manages it (ie moves it in and out of various stocks and shares etc).Am I right?

In that case, If I have 3K to invest for 3 years, and I want a higher return than just having it sat in a savings account, and once I've invested it I don't want to think about it until the 3 years are up.... IS a 'fund' the right place for it?

Not really, no. Investments like this usually have a minimum timescale of 5 years. You might be better off looking at something like NS&I index-linked saving certificates.

dunstonh

In that case, If I have 3K to invest for 3 years

Investing is 5-10 years not 3 years. That is unless you are a high risk investor who understands the consequences and can afford to take short term losses.

I suppose my risk profile would be cautious....

1. Invesco perpetual income (or high income, what's the difference please)?
2. Jupiter Income
3. One other (any suggestions? Or perhaps both Invesco funds)

The two funds you list are medium/high risk. Dont exactly fit with your cautious profile.

Stick to cash/deposit based savings.

fimonkey

Ah boo, I keep hearing about how ppl have done so much more with their savings than just keeping it in a savings account, almost makes me feel guilty. Plus the media are constantly harping on about the greatness of such funds....

1.OK so if I 'invest' 3K for 5-10 years, would a fund be my best option (in terms of just putting the money there upfront and letting someone else take care of it?),
2.Would it beat the top savings account (currently 6.5% A&L e-saver) but keep with my cautious approach?
3. Or do I need to take the plunge and be more medium risk to beat the top savings account returns? (I'm a BR tax payer).

I want to take the plunge, but the more I read about investing the more confusing it gets... I would just like to have the opportunity to see more growth than interest rates (which after tax barely beat inflation on the RPI index), hence my need to be able to let someone else take care of it.

Ideas, or am I just dreaming?

Thanks again in advance

motiv4

im in a similar boat to you at the moment, the more i read the more confused i also get. but after a while you start to form ur own kind of image of what you want.
if i were you i would put the 3k into a high interest savings account.