Pension Question

[Sasha13]

I have around �1000 to transfer from an old pension fund, into my present company fund. I am 28 years old. I have been asked how I want my �1000 invested. The choices are all Clerical Medical and are between Balanced Managed Fund, Ethical Fund, UK Equity Fund, With-Profits Fund and Cash Fund. I don't want to pay out for an IFA when the amount is this small. I would like my �1000 to be fairly low risk and know that that means fairly low reward - that's fine. I think I should put it into the Cash Fund or Balanced Managed Fund. Am I correct? Thank you very much for any help.

[PrinceRainie]

You have hit the nail on the head. If you were prepared to accept a higher risk stratergy and "larger" fluctuations over time, then the Equity Fund would be te favoured option. A with-profit based fund would not be a first choice due to any potential future MVR (exit charges) there may be. Cash Funds are usually ok when you have only a few years left till your intended retirement age. Aas you are only 28, I would advise against a Cash Fund. A balanced fund would follow a generally Medium risk stratergy as they are usually balanced between equities (stocks and shares) and fixed interest or property type investments. I would go for the balanced fund as then you are giving it a reasonable chance to grow over the next 30 odd years until retirement.
An equity fund would be my first choice as it is only �1k, adn if you arent going to add to it...then what have you got to lose...equities have out perfomed any other asset over the last 20 years....including property......

[Sasha13]

Thank you very much for your help.