Invest in Gilts or Equities?

its about risk and reward and ( gilts = income, equities = capital change and dividend payment)

equities - stocks can rise or fall significantly in price so giving large capital rise or fall - the hope is rise - but as we all know at the moment its a bit doom and gloom now and values have dropped which many people are very uncomfortable with

gilts - are backed by the government so will not fail - but there is little chance of any large capital increase in value - you just get a steady income - and if you have less than 50k now you might as well get it into high interest bank or building society accounts paying a decent fixed rate - start with cash isa's

Gilts are safe, income generating. You have to think about inflation though. Equities, in the main give growth. Equities are the thing to be in now (for the long term) but 1. you have to be really selective and 2.Where are markets heading in the short term?

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