Cash-Deposits“Funding for lending”, a scheme that the government invented to encourage more cash into the system for businesses and home owners, has further slashed the rates available on deposit.

For those that are not willing to take any capital risk, deposits will still need to be the cornerstone of their investment strategy but in a world where inflation seems to be a certainty,  and other investments are uncertain, the options available are diminished.

At the time of writing I’m unable to find any rates above 3% (which in turn is lower than the current annual increases in the retail price index), unless you’re willing to look at an investment period of over three years.

Investing in many risky investments does not look appealling either, the UK stock market (FTSE) has grown nearly 12% in one year, but comparisons with the past are dangerous; firstly because it can give a false sense of security (this trend will almost certainly not be repeated over the next twelve months) and secondly it leads to less sophisticated investors to consider the stock market, without advice, who are easily panicked when it inevitably ceases its current run.

The short term performance of investment markets index should be irrelevant in the context of an individual’s long-term investment strategy. We specialise in helping individuals to think about what they need, financially, over the course of their life and follow a diverse, balanced investment strategy that gives them a realistic chance to achieve these wishes. Holding cash has its own risks, but UK equities are likely to only represent the minority of most people’s investment strategy.

Wingate can help build an appropriate plan, coupled with a coherent strategy that help you to achieve what is important to you.

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