The best way to invest £100,000

kenshaz

short term yes,but historically this has never happened,2 years is short term,but it depends,do you need the money to be always on hand

HC_2

We could tie it up for max 2 years only. Are you saying there would be little risk over that short period?

I guess equities pay interest (or whatever it's called with these things) only at term? Is that right? Sorry to be so ignorant.

kenshaz

dividends decided by the company,better to reinvest these,and you get the share value increase can go up and down,2 years is probably to short,but I no crystal ball,you are spreading the risk with a tracker fund

ReportInvestor

HC, you mentioned that you wanted a guaranteed return over 2 years. That requires a cash investment, not equities.

Equity "investment" over 2 years is more like trading the market and comes close to gambling.

You should search for a two year bond or the best instant access account and not spend the next two years worrying if you are going to lose money.

HC wrote:

We could tie it up for max 2 years only. Are you saying there would be little risk over that short period?.

Your lack of knowledge about the stock market suggests to me that if there was a strong market "correction" (i.e. drop in 2006) then you are likely to panic.

cheerfulcat

Just to back up ReportInvestor's point; there *will* come a time when the whole market drops. If that happens just before you need the money, you will be well up the creek with no paddle. Keep your money in cash, or near cash ( Premium Bonds , if you want a flutter ).

I shall certainly investigate the Virgin tracker.

While index tracking funds are a great introduction to the stock market, they are best used for either regular investments or lump sums which are not the whole of the capital available. You could put a small portion of the 100k into a tracker, in the hope that it returns a bit more than the cash portion, but to be honest this is not a course of action I would recommend to a stock market newbie.