Short-term investment strategy

[Holts]

I’m popping in here with something I know next to nothing about , for the same reason as others I guess , what to do with short term cash .

I have looked at Vanguard Sterling Short-Term Money Market Fund.

The yield shown is trailing and from what I understand is currently greater than 3.5 per cent , there is the possibility of some capital loss but this seems on very rare occasions and can be ridden out .

Any views on this type of instrument ?

[kempiejon]

what to do with short term cash .

I like cash for all short term holdings a year or so and any planned expenditure. If you're buying an investment then there's spread, charges and market risk. Cash has none of them, premium bonds offer around 3% and enough cash savings account with similar amounts exist https://www.moneysavingexpert.com/savin ... -interest/
Perhaps if I needed to handle a few million for a few moths I'd have a different view.

[Holts]

Perhaps if I needed to handle a few million for a few moths I'd have a different view.[/quote]

I have bought a small amount as an experiment .

[makemakeolaf]

I'm not completely sure about the rules regarding holding cash in an S&S ISA, but if you can't find anything definitive, liquidating and waiting may be your best option. As for investment strategies, there are some low-risk options like government bonds or high-yield savings accounts that may be worth looking into.

[Degsy67]

I’m popping in here with something I know next to nothing about , for the same reason as others I guess , what to do with short term cash .

I have looked at Vanguard Sterling Short-Term Money Market Fund.

The yield shown is trailing and from what I understand is currently greater than 3.5 per cent , there is the possibility of some capital loss but this seems on very rare occasions and can be ridden out .

Any views on this type of instrument ?

I suggest you take a look at an accumulating Money Market Fund ETF which tracks the SONIA interbank rate. Something like Lyxor Smart Overnight Return (CSH2).

For 1 year returns see: https://www.google.com/finance/quote/CS ... &window=1Y

For a good video covering the options see: https://youtu.be/qMTkreV2CRU

Degsy

[Charlottesquare]

I'm not completely sure about the rules regarding holding cash in an S&S ISA, but if you can't find anything definitive, liquidating and waiting may be your best option. As for investment strategies, there are some low-risk options like government bonds or high-yield savings accounts that may be worth looking into.

Gov bonds may be low risk re default risk but if reasonable term left and bouncing interest rate setting in the UK the only capital certainty is holding to redemption, which may be longer than one wishes to hold, any redemption price earlier is at the whim of the market and may accordingly not be that low risk.

[Holts]

For a good video covering the options see: https://youtu.be/qMTkreV2CRU

Degsy[/quote]


Thanks for suggestion and link .