Any ideas as to which fund/where I might invest to get good returns?
14 March 2022
Question by Danny
I am 67. I have £150k to invest and I want good returns. Any ideas as to which fund/where I might invest?
Answered by Andrew Neligan
An important starting point is to define for yourself what 'good returns' look like and how long you are investing for. If you want to have higher longer-term returns you need to accept the chance of higher losses in the short-term (anything up to 50% in a year if you are fully invested in the stock markets). If you don't think you could stomach short-term losses then you have to give up some long-term growth.
In terms of where to invest a diversified portfolio will invest in the main global stock markets and bonds of global governments. A balanced portfolio would be somewhere in the region of 60% bonds: 40% shares to 40% bonds : 60% shares.
All the evidence shows that higher fund charges do not equate to higher returns so keeping fund charges as low as possible is a good principle to remember. Fund managers such as Vanguard, HSBC and L&G all have a range of low cost index funds. Vanguard's Life Strategies range is popular with investors who want to keep things simple.
I hope this helps.
Chartered & Certified Financial Planner
Typically, I work with individuals and couples who have got to the point in their lives that they have important questions about money they want answering. They may be thinking about retirement in the next 5 to 10 years but they are worried they won’t have enough so they want to make sensible decisions now. Or, they really want to retire sooner, but either they don’t know if they can afford to, or they are afraid they will make decisions that they may later regret.