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  • FIRST POST
    • Ballie12
    • By Ballie12 8th Sep 17, 9:34 AM
    • 1Posts
    • 0Thanks
    Ballie12
    Max return over 11 years advice please
    • #1
    • 8th Sep 17, 9:34 AM
    Max return over 11 years advice please 8th Sep 17 at 9:34 AM
    Morning everyone,
    I am looking to invest approx £500 a month over this period and looking for advice as i find the range of options quite mind-blowing and overwhelming.!!! I am looking for very low risk as am not an experienced investor.any advice greatly appreciated thanks Carole x
Page 1
    • xylophone
    • By xylophone 8th Sep 17, 9:57 AM
    • 22,876 Posts
    • 13,232 Thanks
    xylophone
    • #2
    • 8th Sep 17, 9:57 AM
    • #2
    • 8th Sep 17, 9:57 AM
    If by very low risk you mean that you cannot tolerate the prospect of capital loss, then you save rather than invest - but the risk here is of the effects of inflation on your buying power if interest rates do not keep up with inflation.

    You might consider opening a couple of current accounts with associated regular savers - say Nationwide Flex accounts/First Direct.

    Otherwise, you might open a stocks and shares ISA and invest £500 a month.

    Example

    http://monevator.com/investing-for-beginners-the-global-stock-market/

    https://www.vanguardinvestor.co.uk/

    Or you might use a combination of both.
    • A_T
    • By A_T 8th Sep 17, 9:59 AM
    • 181 Posts
    • 85 Thanks
    A_T
    • #3
    • 8th Sep 17, 9:59 AM
    • #3
    • 8th Sep 17, 9:59 AM
    I guess the lowest risk would be something from National Savings. But any growth may well lag inflation.
    • BLB53
    • By BLB53 8th Sep 17, 10:37 AM
    • 1,106 Posts
    • 890 Thanks
    BLB53
    • #4
    • 8th Sep 17, 10:37 AM
    • #4
    • 8th Sep 17, 10:37 AM
    Over the next 10 years Investments are likely to give a better return than cash. I would be looking at Vanguard Lifestrategy 40 (40% equities/60% bonds) as a possibility via Vanguard Investor platform which charges 0.15% p.a.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • bostonerimus
    • By bostonerimus 8th Sep 17, 12:33 PM
    • 861 Posts
    • 435 Thanks
    bostonerimus
    • #5
    • 8th Sep 17, 12:33 PM
    • #5
    • 8th Sep 17, 12:33 PM
    What do you mean by very low risk? Do you want a guaranteed return of say 1% or would you be willing to risk losing money if there was a good possibility of you getting 5%?
    Misanthrope in search of similar for mutual loathing
    • Audaxer
    • By Audaxer 8th Sep 17, 2:43 PM
    • 407 Posts
    • 168 Thanks
    Audaxer
    • #6
    • 8th Sep 17, 2:43 PM
    • #6
    • 8th Sep 17, 2:43 PM
    What do you mean by very low risk? Do you want a guaranteed return of say 1% or would you be willing to risk losing money if there was a good possibility of you getting 5%?
    Originally posted by bostonerimus
    If the OP was to look into DIY investing and invest long term in a low cost passive globally diverse fund with a fairly cautious equity/bond mix, I would think there is a very good possibility of decent returns, and the risk of losing money is pretty low unless she panics and sells when prices fall a lot as they will at various times during an 11 year period.
    • steampowered
    • By steampowered 8th Sep 17, 3:27 PM
    • 1,685 Posts
    • 1,611 Thanks
    steampowered
    • #7
    • 8th Sep 17, 3:27 PM
    • #7
    • 8th Sep 17, 3:27 PM
    "Max Return" OR "Low Risk".

    These are contradictory. You need to choose.

    As you are investing over the long term, I would simply put the money into a Stocks & Shares ISA. In that ISA buy an investment fund (such as a tracker) to put in that ISA. There are lots of different types of fund to suit different risk appetites. The risk of losing money over a 11 year time frame is very low.
    • dunstonh
    • By dunstonh 8th Sep 17, 4:31 PM
    • 89,484 Posts
    • 54,949 Thanks
    dunstonh
    • #8
    • 8th Sep 17, 4:31 PM
    • #8
    • 8th Sep 17, 4:31 PM
    I am looking to invest approx £500 a month over this period and looking for advice as i find the range of options quite mind-blowing and overwhelming.!!!
    about 30,000 single options and a near infinite number of variations.

    I am looking for very low risk as am not an experienced investor.
    One person's very low risk is another person's high risk. So, context is needed on what you mean by risk. Especially as your thread title does not seem to match what you are saying in your post.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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