What do other traders do with cash that is sitting in their ISAs, SIPPs and other trading accounts? Brokers pay trivial interest rates, but where's the best place to invest it until it is needed for equity purchases?
.JPG)
40 years experience in the software industry. Former Deloitte & Touche consultancy partner.
I've been thinking about this myself, and have been looking at using Bonds / Gilts via an ETF so I have quicker access. I don't know enough about them to make a decision yet, but that's where my research is focussed.
Ta
I have put a lot into ISHARES ? IND-LINKED GILTS UCITS ETF (LON:INXG) ,an index-linked gilt ETF that has served me well this year. I'd welcome other's advice and experiences.
I opted for the Morgan Stanley Sterling Corporate Bond fund this morning. Acceptably lower risk that shares, better performance than cash and pretty low fees.
Thanks for the heads up re the ISHARES ETF. Will look into that.
The iShares £ Index-Linked Gilts UCITS ETF (LON:INXG) is up 17% YTD according to the iShares website. Impressive performance.......will look into this too. Has a TER (Total Expense Ratio) of 0.25%.
I've been putting a bit of money into precious metals ETCs with low expense ratios - passive ETCs that hold the underlying metal.I actually hold shares in Platinum,Palladium and Rhodium ETCs.I do not hold shares in Gold and Silver ETCs because I have exposure to those through mining and mining royalty shares.
In my opinion, the return on cash is irrelevant. There are always opportunities to make good returns on equities, or shorts, so I just see cash as a temporary parking place and don't need any return from it at all. It's more important to avoid losses I think, by being wrong about something.
Just a personal view, feel free to shoot me down in flames!
Regards, PP.
