BESt way to make money off my 10000 pounds

ray1234

HI could someone plz help iv got 10000 pounds saved what's the best thing to do with it or how to invest it to make a quick profit on it ? im not to good in the field of investment...

dunstonh

ok. The quicker the potential for profit, the greater for loss. So, how much loss are you willing to accept on that money?

ray1234

id be willing to loose up to 2000 pounds if the chance for gain was high

Aegis

How long are you looking at saving or investing for? You say "a quick profit", which to me screams that you should steer clear of investments, which tend to be for good profits over the long term (5 years or more) rather than anything short term.

Primrose

You admit you're not very clever in the investment field, so I would play safe. If you're a taxpayer, make use of your £3000 cash ISA allowance this year and stick the rest in ICESAVE. Then in the next tax year, withdraw £3000 and stick it the one of the best performing Cash ISAs around that time. And in the next tax year after that, take out another Cash ISA. You won't make a fortune but at least your money will be safe, although of course, in time, inflation will have an effect on it. The stock market is very volatile at the moment. I'd give it a wide berth.

ray1234

yeh i was thinking more of a quick profit any ideas on what to do with the money

dunstonh

Your risk level is fairly low so there are not going to be any quick profit ideas that match your risk.

ray1234

How high would the risk need to be?

gil13

buy some shares, such as RBS, you will get a 10p interim dividend if you purchase before they go ex-dividend in they next week or so. the share price is looking a bit sick and could get a bick sicker equally you could get a 15% increase in the share price once the ABN bid situation becomes clearer. the dividend yield is about 5.7% and forecast yield over 6% next year, so this gives some comfort if the share price goes down. there are quite a few companies on the stock market in a similar situation. risky enough for you?

jamesd

To make a fairly predictable 7-8% with a chance at a million and no chance of a significant loss you might consider:

100 of premium bonds
The rest in a high interest savings account
Learn about regular saver accounts and start enough of them to fully use the 9900 a year from now.

For more risk of loss but with more gain potential, put just 6900 in the savings account and regular savers and buy 1,000 each of funds investing in Latin America, Emerging Europe and Asia Pacific. These could fall or rise by 50% to 75% in a year. If they fell 75% the average drop between them and the savings accounts would be about 19%. If they rose by 75% the average gain would be about 26%.

To learn how you can put together a set of investments that could grow or fall by 40% I suggest that you read Ok then - How do I choose a S&S ISA to get an idea of what a sector allocation is and see the risk level 9 example there.

Aegis

jamesd wrote: »

To make a fairly predictable 7-8% with a chance at a million and no chance of a significant loss you might consider:

100 of premium bonds
The rest in a high interest savings account
Learn about regular saver accounts and start enough of them to fully use the 9900 a year from now.

Fair enough idea, though I'd personally lose the premium bonds (as per Martin's article ) and invest £3k into an ISA with the rest in high interest savings.

For more risk of loss but with more gain potential, put just 6900 in the savings account and regular savers and buy 1,000 each of funds investing in Latin America, Emerging Europe and Asia Pacific. These could fall or rise by 50% to 75% in a year. If they fell 75% the average drop between them and the savings accounts would be about 19%. If they rose by 75% the average gain would be about 26%.

Wow, talk about jumping in at the deep end! You know there's a level of risk between "almost none" and "ultra high", right? Instead of having cash savings and one of the highest-risk investment portfolios ever, you could balance it a little more and have maybe one high risk fund mixed with a couple of lower-risk ones in, for example, UK Equities and other similar risk-levels. That way the potential for growth is still there but with a much more balanced portfolio that should spread the risk and give a nice platform for getting into further investments in the long term.

However, before investing in anything, it might be worthwhile for the OP to either speak to an IFA (might not be worth it for an investment of a couple of thousand... dunstonh might have a comment about that though!) or learn a fair bit about investing itself. Personally I would never invest solely in emerging markets, that's way outside my risk profile, and I consider myself to be a high-risk investor!

To learn how you can put together a set of investments that could grow or fall by 40% I suggest that you read Ok then - How do I choose a S&S ISA to get an idea of what a sector allocation is and see the risk level 9 example there.

With all your investments in emerging markets you could probably get an overall fall of more than 40% if something disrupted all 3 countries (like if the US economy goes into a bit of a recession)