Trustnet Magazine 73 May 2021 | Page 10

PERFORMANCE OF INDEX VS CASH AND INFLATION OVER 18YRS
Cover story
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“ Your daughter has a 16-year timeframe , but you may not and may want to dip into your ISA to buy a car or a house . You need to think about this and invest accordingly ”

risk off the table by adding bonds and alternatives to the portfolio . Fortunately , we have time on our side , so I can afford to take on some of the volatility associated with equities . By comparison , the approach I take with my own ISA differs because my time horizon is shorter .
“ Your daughter has a 16-year timeframe , but you may not ,” explains Peter Sleep , a senior investment manager at 7IM . “ You may want to dip into your ISA to buy a car or a house . You need to think about this and invest accordingly .”

PERFORMANCE OF INDEX VS CASH AND INFLATION OVER 18YRS

FTSE All Share
Bank of England Base
UK Consumer Price
( 296.84 %)
Rate ( 37.19 %)
Index ( 44.9 %)
350 %
300 %
250 %
200 %
150 %
100 %
50 %
0 %
-50 %
May03
May05
May07
May09
May11
May13
May15
May17
May19
Source : FE Analytics
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