Advice for complete beginner - Investment related

redrabbit29

Hello Everyone,

Bit of background - I have a very stable job with about £400-£600 spare money per month (it varies between these two figures). I am currently saving for a deposit for a house, so I can buy in about 2 years time.

I put every spare penny (of the 400-600) at the end of the month into my savings account which is a Halifax ISA. However, I feel there may be more beneficial and better rewards to be had by investing.

The problem is I haven't got a clue about Shares at all, so have a few questions:

1) I wouldn't mind investing maybe about £100 per month into the shares

2) I can't take too big a risk and can't afford to lose all the money I invest, what are the chances of this happening, e.g. I end up investing £1000 and I lose it all? Could that happen?

3) Is it worth investing this money or should I just stick with my trusty savings account which pays 5% net profit and is sitting comfortably in the bank.

My total savings so far are only about £3600 so not much. I get paid in a few days time and will have a bit more money coming in so may have a lump sum of £1000 to play about with.

Any suggestions?

I realise these are beginner questions so please refer me to articles if required, I have looked but really not sure where to begin. Thank you!

Lokolo

£100 a month is fine. Thats an ok investment.

However, investments are typically 5-10 years, so investing for your house deposit isn't a good idea. It takes a few years for the bumps and bruises to iron out before any return is really made.

Chances of losing all the money is slim yes, but it depends on your risk factor. There are different risk levels of funds, the higher risk, the more likely you would lose it all. Of course, even with low risk, there is still that chance.

How much have you put in your ISA since April 6th 2008?

redrabbit29

Lokolo wrote: »

How much have you put in your ISA since April 6th 2008?

About £1500, plus the £1000 from this month as I'm being paid a bit more, total of about £2000 eventually.

It would have been more, but there were a few expensive months around April-September time that were unexpected.

Lokolo

Ok well to be quite honest, its not worth investing at the moment. Fill up your ISA first. Max of £3600 this tax year. Wait to see what housing market is like, if you wait you can save more.

Once you have secured mortgage etc. then maybe start thinking about longterm and investing.