Strategy for Investment for 5 years for £100,000

[veeCodger1]

My HYP, like many peoples, is currently down in capital value by about 15% from April 2019 and dividends are slashed. I am not massively keen on adding to the HYP as I see little positive news for the typical HYP shares.

I was pondering where I would invest a lump sum of £100,000 for 5 years for capital growth? No immediate income is required and it can be left untouched for 5 years, possibly more.

My first thoughts are:
Vanguard LifeStrategy 80%
World Tracker e.g. VWRL
S&P500 tracker
Vanguard Targeted Retirement Pension fund for 2030 (this fund moves progressively into bonds)
Government bonds
FTSE100 tracker
ITs Basket of Seven or ITs Basket of Eight: as both of these offer income and growth
HYP shares

Or a combination of the above.

Which has the best for potential growth? Any suggestions?

[dealtn]

Which has the best for potential growth? Any suggestions?

It's not the most frequented Board (perhaps as questions such as this aren't asked there particularly) but there is a Growth Strategies Board. It might be worth asking there, and reading any existing threads too.

https://lemonfool.co.uk/viewforum.php?f=96

[veeCodger1]

Thank you.

I have posted there and a little surprised at the lack of posts on that board.

[Dod101]

I would be very much inclined to put your £100,000 into the Growth10 which can be found on the Growth Strategies Board. They seem to me to be a good range of ITs, at least a couple of which I hold (Scottish Mortgage and Alliance)

I do not know all of the others but Luni is usually on the ball.

Dod

[AlumniLawn]

Almost any of the Baillie Gifford funds are worth a look. Their performance has been spectacular and their philosophy will not change. Can we expect more of the same though?
Look at:
American B*
Long Term Global Growth*
Positive Change
Global Stewardship
Scottish Mortgage (IT)*
Edinburgh Worldwide Trust (IT)*

Three highly rated and very successful global funds are Fundsmith*, Lindsell Train Global* and Blue Whale.

And if you like trackers then Vanguard VWRL (inc) or VWRP (acc) are FTSE Global ETF's (3,600 holdings) or IWFM* which is an iShares global momentum tracker with 360 holdings.

There are a lot of funds and IT's that dont get a mention here and it is worth doing some digging but these are a good place to start.

* I hold these funds

[veeCodger1]

Thank you for feedback.

The performance of many of the above exceed my HYP in terms of dividend (or drawdown) and capital performance. Off course no one knows if it will continue.

I think I have been blinkered into the "UK shares only" HYP and index tracker approach.

I may be selling part of the HYP and investing in some of the above. I note that some American performance has been amazing and I suspect technology advances will continue in the US.

I cannot see my HYP performing better than a S&P500 tracker, in terms of total return or drawdown vs dividend. Good to have both as part of a balanced approach.

[TUK020]

Risk: 5 years is a relatively short horizon to be investing in equity. Things could go badly wrong in terms of market valuations, and not recover fully in this sort of period. Therefore I would suggest that you think about an asset allocation that includes some cash, and some gold.

For a portion of the equity chunk, you might want to take a look at L&G Global 100, exposure to US & tech stocks. Low costs.