Vanguard Wellesley fund (VWINX) for short-term investment
I have recently used personalcapital.com, which suggested me that i have too much money sitting in online savings account (150K) (1.3% yield) and i should consider stock market. I already have a 3-fund portfolio of 40K in vanguard other than this money) but based on this suggestion, i’m planning to put 100K of 150K to Vanguard Wellesley (VWINX). This fund is 60/40 bond/stock, ER is 0.22%, average return is 7%, and it is not very volatile (dropped only 10% in 2008, and performed comparable to vtsax last 10 years overall). Is this a good idea, has anyone used this fund? I’m planning to use this 150K for buying a house in 2-3 years, so low volatility is important, but the returns seem to be high for a fund that is not too volatile. Do you think this is a good short-term investment method, instead of using an online savings account (which returns 1.3% with no risk)?