Investment ideas for £2,000

Lola888

My daughter (who is only 13 mths) has £2,000 from various relatives. Where is the best place to invest this for her future? I won't be paying anything into it monthly.

I have already set up a children's regular saver with Halifax which I pay £100 into every month, plus I am paying £25 into a child pension with Virgin. When the regular saver is full after 1 yr I might put it with the £2,000, but not sure yet.

Any ideas for investing? Thanks

jimjames

This should give some ideas

https://forums.moneysavingexpert.com/discussion/4564599

but instead of £22 per month you'd put it in at the start which should give even better compounded returns.

xylophone

Have you opened a JISA for her? https://www.gov.uk/junior-individual-savings-accounts/overviewhttp://www.halifax.co.uk/savings/accounts/cash-isas/junior-cash-isa/

Be careful of the £100 rule if a parent saving for a child outside tax privileged schemes like JISA.
http://www.halifax.co.uk/savings/accounts/branch-accounts/#kidsregularsaver

You might prefer to save in stocks and shares in view of the long time frame.http://www.hl.co.uk/investment-services/junior-isa

mucgoo

Just stick it in a world equity tracker ETF using a JISA. Be careful of any fixed platform fees as they'll demolish £2,000.

donniej

stokaze's post is spam.

A couple of things to look out for:
* with a £2000 investment, you'll want to be especially careful of fixed fees - not just account fees, but also buying and selling fees. For instance, if you pay £12.50 to buy a share, that's a 0.6% charge to buy the share.
* if you are looking at shares, a couple of places are much cheaper than the others (x-o.co.uk, and I'm afraid I don't remember the other - both charge £5.95/deal rather than the usual £10-15 range.)
* you probably should look at collectives though (e.g. ETFs, funds, or investments trusts.) With ETFs and investments trusts, you pay a fee to buy or sell. With funds, this is free at most places, but the ongoing charges are usually higher (0.3%-2%, rather than 0.1-0.7%)

My summary would be:
* look at collectives over individual shares. Most likely funds first, then ETFs then ITs.
* be careful of fees. Look for a platform/broker that doesn't have any ongoing fees.