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Where to invest 130K for 1 - 2 years

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  • 29-05-2007 11:35am
    #1
    ncit9933
    Registered Users Posts: 140 ✭✭


    I have 130K to invest for 1 - 2 years.
    Where is the safest and best place to do it?

    It there any place that would give me near 10% of a return if I guarenteed not to withdraw it for a certain time limit?


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    #2
    Diarmuid
    Registered Users Posts: 3,981 ✭✭✭Diarmuid


    ncit9933 wrote:
    I have 130K to invest for 1 - 2 years.
    Where is the safest and best place to do it?

    It there any place that would give me near 10% of a return if I guarenteed not to withdraw it for a certain time limit?
    10% pa?! Not a chance.

    Your best bet is Anglo Irish Bank 30 day saver ( 4.25%pa.) or Northern Rock. (not sure)


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    #3
    ncit9933
    Registered Users Posts: 140 ✭✭ncit9933


    what are fund accounts and what's the risk with them and average return?


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    #4
    Diarmuid
    Registered Users Posts: 3,981 ✭✭✭Diarmuid


    ncit9933 wrote:
    what are fund accounts and what's the risk with them and average return?
    It's where the account manager invests the money you put in your account in a fund. That fund could be based on anything from bonds (lower risk) to big cap US/EU equities (higher risk) to emerging market equities (v high risk) and various combinations.

    Generally risk and return are related and varies as I mentioned.

    Eg the average for the S&P500 (biggest 500 companies in the US) since 1975 has been 9.9% annualised with a standard deviation of 14.9. (This means that 68% of the time your return will be between -5% and +25%)


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    #5
    ressem
    Registered Users Posts: 2,426 ✭✭✭ressem


    If it's only for one or two years then something like one of Rabo's investment funds might be suitable.

    None of the returns are guaranteed, but due to the low entry and exit fees (0.75%) which makes a large difference especially over a short term, and perhaps by spreading your money across a few funds you should be able to beat the 4% savings plan rates.
    http://www.rabodirect.ie/investments/fund_details/selection_growth.asp


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    #6
    Diarmuid
    Registered Users Posts: 3,981 ✭✭✭Diarmuid


    ressem wrote:
    If it's only for one or two years then something like one of Rabo's investment funds might be suitable.

    It might return more than 4% but also it might not. As I stated above there is quite a spread on a relatively "safe" equity investment in 1 year.
    If you cannot face losing any of your capital, steer clear of equity funds.


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