FTSE Tracker or something else.....

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I'm looking for somewhere to invest a lump sum amount. It's long term (10 years) but I will need to be able to dip in and out so It needs to be reasonably accessible (so no fixed term deposits). It needs to be low/medium risk, ideally generating something like RPI+2%.

Options that I'm considering are a FTSE Tracker like vanguard, or a Corporate Bonds fund. What's putting me off is...

Are equities overvalued?
Are bonds going to get a kicking if interest rates go up?

Thanks for any advice in advance.

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Thanks both.

As i suspected, no hard and fast answers really....I think VUKE is going to be the least risky option.

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NickCQ said:

You get that on the FTSE 100 anyway. I'd be tempted add some global equity exposure, if only because I am generally pessimistic about Brexit.

Wouldn't FTSE100 effectively be global exposure?

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JulianPH said:

Perhaps the OP should consider a well diversified managed portfolio that spreads investments across many asset classes - depending upon attitude to risk - using low cost ETFs.

A cautious managed portfolio (or balanced now moving to cautious) would appear to meet the conflicting requirements and they are available in abundance. Perhaps even a 10 year target dated portfolio?

Edited by JulianPH on Sunday 23 July 16:25

Cheers - that sounds good to me

Any recommendations for low cost ETFs? Again I assume a Vanguard product would probably be the best....?

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Jon39 said:

We have gone away from the topic somewhat, so here is my direct answer to the OP's original question.
FTSE Tracker or something else?

As you can see from the chart, my answer is clearly, 'something else'.
Long-term stakes in selected, non-cyclical, defensive, global FTSE 100 businesses.

Thanks Jon39.

Ratesetter is currently paying 3% with 1 month access so I'm going to stick some more in there. With the rest it's definitely going to be a tracker/basket/fund of some kind. I have relatively low risk appetite with this bit of money and i think selecting specific stocks is going to present more risk than going for a basket of funds.

Thanks all

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So, dynamic impulsive individual that I am, I have narrowed it down to the following 3 funds

Vanguard FTSE100 (VUKE)
Vanguard FTSE250 (VMID)
Vanguard European excl UK (VERX)

At the moment my preference is for VUKE/VERX, 50% in each and then top up at regular intervals. VUKE because of the global exposure and diversification, and VERX because I think the European economies are past the worst, and it allows a bit more diversification. I'm probably going to avoid VMID actually.

Any view/comments/suggestions? Basically I'd be happy with 4% plus a bit of capital growth.....