David Miller, executive director at wealth manager Quilter Cheviot, explains how to allocate investments in your Isa portfolio.
Investing is built around a simple premise. You put your money in an investable asset in the hope that it provides inflation-beating growth, or attractive income payments.
But that’s where the simplicity ends. Everyday investors face a minefield of jargon, risk and choices, not to mention the stress of thinking you’ll make a bad decision with your investments and see your hard-earned savings shrink in value.
You may have just made use of your Isa allowance for the previous tax year, or opened a stocks and shares Isa for the first time and be wondering, how on earth do I decide how to allocate my investments between equities (shares), alternatives (commercial property, commodities, private equity), fixed interest (corporate and government bonds) and cash?