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Non cash ISA for short-term safety

I'm planning to sell my holding in Fidelity's China Focus fund shortly, in order to lock in profits following a year or two of stellar growth (the signs of a bubble forming are just too pronounced for my liking now) It seems I can't transfer the value of the ISA to a cash ISA, due to HMRC regulations, so am looking for something which can provide a similar short-term safe haven while I consider where to invest in next.

I'm looking for something that will protect the capital to a *similar* degree as cash, in the event of a downturn, low (ideally zero) initial and exit charges and low management charges. However I'm not especially looking for income in the meantime as my driver is capital growth. The bonds I've looked at so far seem to be losing value (albeit to a small degree) in order to produce income.

Any tips?

J
Reply to
google
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The best that you can do is to invest in a short-dated Gilt (but not less than 5 years to go to redemption) which is standing below par. You will get the interest on the nominal value, and stand to make a capital gain if interest rates fall. If Fidelity will not let you invest directly in gilts, then transfer to a self-select ISA with low or zero changes, and invest there. Alliance Trust might suit you.

Reply to
Terry Harper

possible

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Thanks again Terry. On the subject of: -

As I am into my second year of investing in this fund on a monthly basis, presumably I could transfer the 2006-07 investment into one of the funds you suggest, leaving this year's where it is for the time being? At least that would reduce my exposure to China by a reasonably amount...?

TIA Jeremy

Reply to
google

I believe that it is possible, but you should ask Fidelity. They may consider it to be a single ISA.

Reply to
Terry Harper

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