Q: Hello Team, I am currently sitting on cash in my FHSA, I would most likely be looking to use these funds in the next 5 years. What is your recommendation?
5i Research Answer:
Five years is a decent time, but not a huge timeframe. Keep in mind any equity exposure will carry some risks. We would play it conservatively, with a mix of cash (HISA, CASH) and some balanced exposure through an ETF such as VBAL, which owns both stocks and bonds. A conservative ETF such as ZUT could also be added. The proportion of cash should depend on one's risk profile: the key here is not HAVING to take money out if the market takes a dip.