Advice for an absolute novice please.

Hercules_Grytpype-Thynne

About 12 years ago I invested in a stock market ISA and did very well with a return of nearly double my money in 5 years, and now I would like to do that again (I know – probably impossible in this climate!), but I thought that as the markets were low (here I go talking about something I know little about!) right now, my money (£5,000) might be worth say 50% more in 3 years time (?) when the markets pick up and when I then retire.


So, should I do the above again or invest in a Cash ISA this time? I will not need to get at the money for three years at least.

I know there are probably answers to this in this forum, but I’ve read and read various missives and eventually nothing goes in! The financial world is a complete mystery to me and I feel sure (and hope!) that someone can help me, please.

I’ve read somewhere that Cazenove Multi Manager Diversity or AXA Framlingham UK Select Opportunities or JP Morgan Emerging Markets are good bets – Yes?

Linton

The problem is that the stock market is very volatile so you need to be invested in for sufficient time for any underlying growth to become larger than the fluctuations. 3-5 years is too short, you need to be thinking about 10 years. Even that in the past decade could have been risky unless you had a well structured range of investments.

12 years ago we were in the middle of a bubble when the market rose continually. You were very lucky, you just happened to chose the right time period and the right investment. Circumstances are rather different now.

If you have only got £5K and are prepared to leave it for 5-10 years I would suggest a fund where the manager chooses a wide range of investments. The Cazenove fund is one such, though whether it is a good one I dont know.

The EM fund is highly focussed and could go up say 50% in 3-5 years, but also could well fall in value. Buying a volatile fund for a short time period is closer to gambling than investing.

Hercules_Grytpype-Thynne

..........it was what I, with my limited knowledge of investments, expected to hear.

Should I just stick with a Cash ISA then within my bank Barclays where the money is at the moment and play safe?