How to invest £500 in better way

crvs

All,

I have opened ISA for my little one. I was thinking whether to invest in index tracker fund or mutual fund. Even though passive investing is good but for small amount £500 , I dont think it is beneficial. On the other hand mutual funds will eat the investment with TER.



Any other option for me to invest £500 efficiently?

Vidhya

jimjames

What have you invested in already? Or is the money still as cash awaiting investment - assuming you mean you've opened a S&S ISA - which platform?

The TER is a percentage so will have the same relative impact on £500 as on £50,000, it won't eat £500 up any faster unless you choose an ISA with fixed annual fees which isn't a good idea for £500.

A general fund such as Vanguard LS100 would give a balanced portfolio in a single fund without needing lots of funds and has low charges.

crvs

Jim,

I havent invested the cash yet. Its sitting in Junior ISA. I will look in to Vanguard LS100

Vidhya