Where to invest £5K for growth?

aubergine99

Hi. I've got £5K to invest for approx. 10 years or more. I already have LS80 and Fundsmith ISAs and a higher interest paying savings account. I was thinking of either an emerging market or small caps fund but open to suggestions. Already sorted with DB Pension, and state pension due in 3 years so can tolerate some volatility. Can anyone recommend anything pls?

masonic

How much do you already have invested? Is there any reason not to invest this sum in your existing investments?

aubergine99

Masonic: I have £28K in VLS80 and £13K in FS. I could invest in existing funds but my inclination is to go for something different and to diversify. I'm waiting to get some ideas from you and others on this board.:)

El_Torro

VLS80 and (to a lesser extent) Fundsmith are already pretty diversified. You might want to invest in other funds if you feel that certain areas are under represented in what you already have. For example:

Emerging Markets and / or Frontier markets
Small companies
Commodities
Property


Will any of the above outperform the funds you already have? We don't know. You might be better off simply adding the £5k to your VLS80.

You specifically mention Emerging Markets and Small Companies. Either is fine, though I wouldn't have too much in either. 5% of your investments in either (or each) sounds about right to me, though opinions on this will vary.

Alexland

I am a bit unclear if you have the VLS and Fundsmith in the same S&S ISA (eg iWeb) or directly in a Vanguard Investor and Fundsmith ISA wrapper. Either way you can only contribute to one S&S ISA per tax year.

If the question is just about funds then I echo the suggestion to consider adding more to your VLS80 which is already well diversified.

Alex

aubergine99

Alexland: The funds are held in the same ISA and the £5K is from a recent S&S ISA transfer.