Where to invest?

poppy8

My two sons, ages 17 and 20, have been left £5000 each. Any suggestions where they should invest it. They are both students but seem to manage on what they have at the moment. Also they are not bothered if it has to be invested for 5 years or so. Hope someone can give some advice. Thanks

al_yrpal

We aren't allowed to give specific advice on this board, its prohibited. An IFA probably won't be interested giving advice on such small sums. Investment carries some risk, whereas a savings account has practically no risk.

If you are still interested in investment, my advice is buy 'Fundology' a new and very up to date short read, which will clue you up on all the basics. It is written by the Fund manager of the UK's best performing Fund of Funds. Then you will be in a better position to choose a good investment.

ReportInvestor

poppy8 wrote:

They are both students but seem to manage on what they have at the moment.

Tell them to write to the finance section of a national newspaper on how they manage to cope and they could earn some extra money for an article .

dunstonh

An IFA probably won't be interested giving advice on such small sums. Investment carries some risk, whereas a savings account has practically no risk.

Although some wouldn't (salesforce or employed IFAs where journeytimes and commission share make it uneconomical to deal with small amounts), smaller local IFA firms wouldnt have a problem. Also, where a family relationship already exists with an IFA, there would be no problem.

£5000 is a fairly easy answer for someone that age. ISAs normally appear top of the list (unless the children are quite wealthy already ). What type would be another issue.