are gilts a good alternative investment?
Aren’t gilts supposed to come good when interest rates are low? Mike Holliday, Colchester Essex Gilts have had a good run recently. For example, the City Financial Gilt Fund has returned over 16% in the last two years. There may be more to come but you might like to consider index-linked gilts or corporate bonds as an alternative. Be careful with corporate bonds as all funds will carry a varying degree of risk and the return of your capital is not always guaranteed. The stock market drop has had a major effect on most types of savings and investments. I have some Distribution Bonds which show a substantial “paper” loss. My independent financial adviser advises me to “sit tight” and ride out the credit crunch storm? Is he right? Albert Bogle, Bridge of Cally, Scotland It depends on what you want from your investment. Generally, Distribution Bonds are conservatively managed and carry a fair degree of fixed interest investments such as gilts which have done well recently. If you don’t nee
