Expert Tips on the Best Cautious Last Minute ISA Lump Sum Investments
As we keep saying, the ISA deadline is looming and we now have around two weeks to go until the annual £20,000 tax haven allowance is reset and any unused portion lost. The SIPP deadline is the
If you are a more conservative investor and your priority is preserving your savings rather than growing them, the stock market can still be an option. Adrian Lowcock, who works for fund platform Architas, suggests more conservative UK equity income funds. Income stocks that this kind of fund invests in are usually in sectors such as consumer staples, telecoms and utilities. These stocks don’t typically see strong capital gains when markets are buoyant but are also resilient during a downturn because even in a weak
Another option is absolute income funds, that spread their holdings across asset classes such as income equities, property and bonds. These focus on global macro trends and aim to deliver the same returns every year regardless of market conditions. This does mean returns are modest as the focus is capital preservation but should still be better than the interest rates offered by cash ISAs. He offers up JPM Global Macro Opportunities as a good example of this kind of fund.
Chase de Vere financial advisor Patrick Connolly’s tips for capital preservation focused funds are Troy Trojan and Investec Cautious Managed. The former invests in internationally diversified defensive equities, index-linked government bonds, gold and cash. The latter is a little more adventurous and invests half its capital under management in assets it believes offer the potential for gains and the other half in those that offer protection in the event of a downturn.
Bonds are also
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