Banking on a safe bet

Equity markets have risen sharply since March 2003 when the bear market of the previous three years ended. But the steep falls in global stock markets toward the end of February has reinforced the message that piling into equities is not a one way bet. Cautious investors, who are not prepared to stomach the rollercoaster ride, would likely find appeal in an investment strategy that provides stable, non-volatile returns over the longer term. The only true way to have smooth returns without putting capital at risk is via cash accounts, but with the Bank of England interest rate at 5.25%, ...