Investing ideas???

alirob12

Hi I wonder if anyone has any good suggestions, how to invest some money/ I have decided to put some money away every month and do something with it. Idea behind it is to invest it somehow to make some extra money on top of it, then invest again and again. (it is not a large amount – only £50-£100) but thought if I can get some return on it every month etc – it may be fun and quite educating.
So any ideas anyone??

Many thanks:beer:

a7man

A S&S ISA is the place to start if you are a tax payer. Choose funds that relate to how much risk you want to take and good luck. You make it sound easy - at the moment I would only consider long term investing as everything is volatile but should produce good growth in a few years if you choose correctly.

Lokolo

You can go for an income fund within a stocks and shares ISA, however, you must think of this as longterm, so 5 years plus. Would you be willing to wait that long for a decent return?

If not a savings account maybe best.

LongTermLurker

alir!!!2 wrote: »

Hi I wonder if anyone has any good suggestions, how to invest some money/ I have decided to put some money away every month and do something with it. Idea behind it is to invest it somehow to make some extra money on top of it, then invest again and again. (it is not a large amount – only £50-£100) but thought if I can get some return on it every month etc – it may be fun and quite educating.
So any ideas anyone??

Many thanks:beer:

Take care - you are unlikely to see a positive return every month, whatever you invest in; if you invest, you must be prepared to see the value drop at times - how far it drops depends on the risk level you buy into, but if you read dunstonh's view, he says 10-15% drop is acceptable on a "low risk" investment.

Remember one thing, Low Risk is not No Risk, and High Risk could see you losing 50-100%. The only way you'd guarantee seeing a constant increase is in a deposit account.

dunstonh

but if you read dunstonh's view, he says 20% drop is acceptable on a "low risk" investment.

I'm not sure I would say 20% is low risk but 10-15% certainly is. It does no harm to assume a 20% loss potential.

It also depends on what scale you use. The problem with using words like low or cautious is that they show no baseline. One persons low is another persons high. I prefer a number based system as at least you know risk 1 is cash. However, the best way of looking at it is from the loss perspective. Forget growth for the moment, look at what could go wrong. How much loss can you afford to have and how much loss are you comfortable with before you call it a day. You should always look at the negative before the positive. Unfortunately, a lot of new investors do it the other way round and get into medium/high risk investments when they shouldnt be.