I am considering investing in an index tracker ISA. I'm aware of the conventional wisdom that they are almost guaranteed to out-perform a savings account. For example, from a recent thread;
This is how the FTSE all-share index has performed since 2000:-
So in seven years it has basically gone nowhere. Unless you'd invested at the right time, eg. early 2003, you have probably got a worse return than in a savings account. If you'd invested in early 2000, three years later you'd have lost 50% of your money (on paper).
What do people here think of index trackers - to me they seem quite high risk.
Pug said:Tax Free ISA.
Cash ISA is the easiest, most guaranteed return, but will make the least.
Bonds are "safe as houses" but dont offer a great earning.
All share trackers (through an ISA) (track the market, not companies) are ALMOST guaranteed to turn a decent profit - but the investement needs to be 3-5 years.
This is how the FTSE all-share index has performed since 2000:-
So in seven years it has basically gone nowhere. Unless you'd invested at the right time, eg. early 2003, you have probably got a worse return than in a savings account. If you'd invested in early 2000, three years later you'd have lost 50% of your money (on paper).
What do people here think of index trackers - to me they seem quite high risk.