Investment for £500

aj3001

What would be the best investment for around £500, upto 5 years investment period time, in which I would not need to withdraw it, I have no debts (no mortgage etc)?

One consideration at the moment is in the stock market, I would prefere a low risk, I was thinking maybe a FTSE tracker account?

dunstonh

Stockmarket is not low risk. Indeed, a FTSE tracker would be closer to medium/high risk. More cautious equity funds do exist though.

If I was to use a crude 1-10 scale (1 no risk-10 max risk), a FTSE Tracker, depending on which FTSE index, would be around 6-7 on that scale. UK stockmarket funds do start around 5 though with some UK Equity Income funds. However, those too are not suitable for a low risk individual. Low risk would be corporate bonds/gilts (not particulary desirable at the moment) and commercial property funds, global bonds or other bonds.

You do have a further limitation that £500 is below what many providers will accept as a minimum contribution. Even if they did you would be limited to just one area so would be exposing yourself totally to that area.