Peter Grant, portfolio manager at Waverton Investment Management, said: 

Investing for the first time can be daunting in the most benign of environments, nevermind during the recent choppy stock market we have experienced.

While it is true that premium bonds offer protection and pay a modest income, in this case 1pc, risks can still manifest in other guises. With inflation as high as 4.8pc over the 12 months to December, the purchasing power of Mr Evans’ £70,000 has fallen significantly.

However, he should take a relatively low-risk strategy, as it is still unclear when his children will buy their first properties. It is better to gradually increase risk (and returns), rather than taking on too much and panicking when markets get choppy.

I would look to begin with around 60pc in funds that invest in stocks, with a balance between long-term ‘growth’ styles which target the businesses of tomorrow, and ‘value’ funds that look for bargains in areas such as the banking sector. He could try pairing Fundsmith Equity alongside Man GLG Undervalued Assets.

I would then invest 20pc in alternative assets (anything that isn’t stocks and bonds), focusing on ones that pay an income that rises in line with inflation. Real estate investment trusts, such as the Supermarket Income Reit and Urban Logistics Reit, are good options. They have both returned 13pc and 28pc in the past three years.

Mr Evans should also consider investing around 15pc of the portfolio in bonds, although that would not be without risk as interest rates are increasing in many economies. The value of bonds that won’t mature for several years generally fall as rates rise. This is because investors sell them and buy newly issued bonds that offer a higher income.

Buying funds that own bonds that will mature in the next 1-4 years is a better choice, although they yield less. Some funds will have ‘Short Duration’ in their name. The TwentyFour Dynamic Bond Fund has bonds 3.8 years away from maturity, on average, and is less exposed to interest rate hikes. It yields 4pc

I would advise that he keeps the rest in cash as it can act as a ballast in times of stress.