what funds/prods are people us for clients looking for small growth but with hardly any risk ?
Thedagger
Member
cash obviously paying nothing, guaranteed funds a bit complex and unflexible
what else are people using?
what else are people using?
Comments
The obvious one that sticks out as an asset class is absolute return funds, but then you have to really understand what is under the bonnet and whether it is a long/short fund (essentially a hedge fund) or an 'ideas' fund as they like to call themselves, or something totally different. I've found too many don't really understand the fund they are recommending.
Others will run a mile from fixed interest but that is the textbook low risk option - short dated corporate bonds are probably the go to area at the moment.
Product wise, you're probably looking at either structured deposits that are asset backed, or an NS&I product but the likelihood is that these will lose the clients money in real terms if the market continues to rise and inflation along with it.
Small growth and no risk - an index linked annuity!
Hope this helps.