The Student Room Group

How would you invest £1000?

In order to make the most money as possible while minimising risk
Reply 1
Have a look here for general guidance on investing (rather than what to actually invest in):

https://www.moneysavingexpert.com/savings/investment-beginners/
(edited 3 years ago)
Original post by LoveAmore
In order to make the most money as possible while minimising risk

Right now I'd steer clear of equities as in my opinion the multiples they are trading at are frankly unsupportable, especially for blue chips/large caps, partially due to yield suppression and lower for longer rates. Personally I'm 60% allocated to sub investment grade debt (Schroder High Yield Opportunities fund) with the rest of my portfolio being quite opportunistic and high risk - a couple of growth oriented small caps, a US small cap fund and some special sits type trades (Premier Oil bonds for example).

To answer your question, high yield/sub investment grade bonds haven't seen quite the same valuation madness as equities and are relatively lower risk compared to equities (which feels wrong consisting annual returns around the 6% mark) - especially as a lot is subordinated bank debt which is fairly safe and debt that's priced at a discount due to COVID related rating actions. The other asset class worth a look is infrastructure, specifically social/economic infrastructure rather than renewables, funds like HICL, INPP and BBGI yield well, provide a partial inflation hedge and are less risky than equities though not without risk.

(Usual disclaimer applies r.e. not professional advice/investment advice and purely personal views, not to be relied upon when making investment decisions etc.)

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