Taking On Board Some Sound Tips for the Cautious Investor
Not everyone wants to jump in at the deep end. If you’re a cautious investor and you think the time is right, you may want to try one or some of the following:
A bond fund. Your money goes into fixed-interest securities tied either to governments or companies.
A mixed fund. This type of fund focuses on a mix of lower-risk shares, bonds, cash and property.
A targeted absolute return fund. The idea here is to achieve a steady return from a variety of assets, whatever financial market conditions might be. The ‘target’ is the percentage the fund’s managers attempt to produce above the interest you could get in a typical bank account.
A tracker fund. This type of fund follows a stock market index such as the FTSE 100 – or the Footsie – up and down. This option is good if you want to invest in shares but have no idea which ones to buy or which fund manager to back. But don’t forget: an index can be all over the place!