£35000 to invest, please help.

savingmachine

Hi all

I am a new member so excuse the new post if such a/ similiar topic has already be discussed.

I have £35,000 to invest and feel lost to where i will achieve the best returns. I am looking to save the money (no withdrawls) for a yr or 2 before i will need to dip into it. At present, Kaupthing edges fixed 7.15% rate bond (1 yr) appeals to me but i am also interested in investing in mutual funds (Emerging markets/Natural resources/Latin America).

i have invested my £3,600 Cash ISA allowance for the yr with IceSave so i was thinking in investing the remainder in a stocks and shares ISA (i.e related to mutual funds). Is that possible?

I am currently thinking along the lines of:
investing £31,400 with Kaupthing (7.15%-fixed for 1 yr)
investing £3,600 (as the rest of my isa allowance) in a fund (emerging markets-no timescale-i am willing to leave the money in there for the long term)

I would GREATLY appreciate any advice where i can achieve the best returns and keep my money safe (the bulk of my savings anyway)

Thanks in advance

dunstonh

but i am also interested in investing in mutual funds (Emerging markets/Natural resources/Latin America).

Fashion investing at the highest end of the risk scale with those choices.


The ISA for stocks and shares can take £3600 but you can still invest unwrapped in unit trusts for any amount above that. However, I do suggest you research investing more if you plan to go DIY as fashion investing rarely ends well.

mr-mad_2

What if the investment sum would be £100-£120 K, Any options?

dunstonh

mr-mad wrote: »

What if the investment sum would be £100-£120 K, Any options?

About 50,000 options. Far too many to list.

a7man

I would say its worth investing in some equities via an ISA. Emerging markets are v high risk so choose the funds wisely! Latin America funds have performed amazingly over the past 5 years but have been dropping off recently.

Have you considered an investment bond for the bulk of it, you will get yearly withdrawals of 5% tax free if this covers your requirements.

jem16

a7man wrote: »

Have you considered an investment bond for the bulk of it, you will get yearly withdrawals of 5% tax free if this covers your requirements.

Who are you replying to?

If the OP it would be a very bad idea to suggest an investment bond with a timescale of 1 to 2 years and only £31,400.

If it's mr-mad at least it's a more likely amount but there is nothing in his post to suggest he falls into the suitable category of those who need an investment bond.

a7man

I wasnt suggesting a timescale of 1-2 years, I was asking whether 5%/ yr would be enough for his needs.

jem16

a7man wrote: »

I wasnt suggesting a timescale of 1-2 years, I was asking whether 5%/ yr would be enough for his needs.

Even if it was £31,400 would not be enough to warrant an investment bond.

dunstonh

£31400 is almost certainly wasted in an investment bond. By the time you ISA up and do bed & ISA each year it would be more tax efficient in an OEIC. (especially if you put the higher yield funds in the ISA and the no/low yield funds in the unit trust/oeic).

6022tivo

With the markets apparently looking a little crap, isn't any fund that links to them a little risky at the moment...

Would it not be wise to just stick it in a decent interest savings account???

Vectra

Stick it in Kaupthing

Hreidar Már Sigurdsson, CEO
"Kaupthing continues to perform well. Return on equity for the first half of 2008 was 20% and it is satisfying to see the Bank meet its ROE target in the face of the upheaval on the financial markets. Our main achievement has been to successfully protect our equity and liquidity positions. The Bank's equity hedge and indexed assets have protected the Bank against the turmoil in the Icelandic economy. We have made excellent progress in recent months in raising deposits, which are up 28% in the second quarter, and we are confident that the Bank will reach its goal of a 50% deposit/loan ratio by the end of the year. The Bank is therefore well funded and liquidity remains solid. Kaupthing is susceptible to the turbulence on the international markets like other banks, and this is underlined by the lower financial income and higher impairment on loans. However, Kaupthing's business is well diversified geographically, risk management is robust and the quality of assets remains good. We therefore believe our asset portfolio is well able to contend with the continuing market unrest."