Where to invest £5000

Mrs_pbradley936

I have £5000 to invest. I do not need to get to it for at least five years and I have been looking at the Barclays FTSE plan.

Is there somewhere better? I could probably invest more than that (about £15k more) but my mind will not let me! I currently have the money in Premium Bonds I have had them for years and every now and then win £50 or £100. Well I have been reading what Martin says about them and know I should invest elsewhere but somehow I remain attached to them in my mind.
I think it is quite common - my husband and son both want me to cash the lot in.

dunstonh

I have been looking at the Barclays FTSE plan.

Eek. What an awful product. I wouldnt touch it with a bargepole.

You obviously are willing to take on investment risk but what level of investment risk? What would be your tolerance to loss? (i.e. how much would it have to drop before you panic and pull out?)

jamtart6

i would probably open an isa, and put £3000 in a year, and also open a high interest regular saver and transfer the maximum amount each month that you can into the high interest,

they are my only 2 suggestions because i dont know what the rest are!

prudryden

PB-
Dun - yet again- is correct. If this is the guaranteed 5 yr plan, they just never seem to make money. Fees is just one reason. In its simplest form, the guarantee is supported by a 5 year zero coupon bond, which matures at par (100% of face value). A good chunk of your money is invested in this, the remainder in the martket, so a large percentage of your investment is not even in the market.

These funds are aimed at the small and unsophicated investors.

Ask Barclays to send you the prospectus (0800 234 6021) and read the bits on how they do their hedging and, especially, the fees involved.

I agree, because of the size of the investment, a fund is the way to go. It is too small to effectively buy individual equities. Which fund you choose is a matter of personal choice of what markets you want to be in AND, as Dun says, your risk tolerance on £5,000.

For some investors, £5,000 is a small portion of their investable assets and, therefore, want to take more risk, and even buy into a commodity fund.