Help with investing 3K in passive manage funds

Bombinogandy

Just wanted to take some advise. 

I have saved up £3000 in a regular savers account which is maturing next month. The plan was to use this money to pay credit card balance. The balance on credit card is on not percent for another 14 months so not paying interest on the balance.  

I was thinking if I could invest this money in an index fund or ETF for a year. I understand the value of my investments can go down as well as up, so I may get back less than I invest, but I would rather take this risk of investing in an LS index fund or S&P 500 ETF and see what return I get after a year. 

Just wondering if investing in either of the two would be a good approach to invest for a year to get some return on investment?

Alistair31

Not wise, IMHO.

george4064

If you need any of that money within the next 5 years I would strongly advise you against investing any of that money.

Bombinogandy

Thanks guys, is there any other investment that can be secure and get some return after a year?

eskbanker

Bombinogandy said:

Thanks guys, is there any other investment that can be secure and get some return after a year?

Just drip feed into another regular saver....

Albermarle

Bombinogandy said:

Thanks guys, is there any other investment that can be secure and get some return after a year?

https://moneyfacts.co.uk/savings-accounts/1-year-fixed-rate-bonds/

dunstonh

I was thinking if I could invest this money in an index fund or ETF for a year.

An economic cycle is around 10-12 years.  You would be investing for 1/10th of that.   That is almost like playing Russian Roulette.   Are you going to get loss 50% of your money in that period?  could do.

Thanks guys, is there any other investment that can be secure and get some return after a year?

Savings accounts.

steampowered

Statistically, the chance of making a loss over a 1 year investment horizon with an equity tracker is about 20%.

A 80% chance of a profit, versus a 20% chance of a loss, may well be a risk that you are happy to take. Though if you did fall within the 20% category it is possible that the loss could be substantial.

Source: https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/.

Thrugelmir

Could you not use the money to fund another regular saver? Any excess pay down the credit card now.