£10k to invest......

funkyfin2000

Hi All,

I've been umming and arring what to do with £10k we've got to do something with. It's probably best in Stocks and Shares ISA and was thinking that Vanguard looked like a good area to put it in, but not really sure what portfolio.

I have my sons Childrens ISA S+S's in a BMO fund and it's gained very well over the past 10 years to nearly £18k.....

We won't want the money immediately, but just want to pop it in somewhere where we can take some risk with it to grow (hopefully!) over the next 5-10 years. 

Any suggestions appreciated please.

Rich

cattie

What kind of investor would you say you were, cautious & would panic if fund dropped in price, or a balanced investor prepared to take a little risk to get a better return ? If the investment is only for 5-10 yrs you wouldn't want an adventurous fund where the returns could be better but more chance of losses & you'd need enough time to ride out any dips until there's an upturn.

One of the Vanguard funds should be ideal. Look at the Life strategy funds, I have money in the 60/40 fund as I can cope with dips & troughs the stock market may go through. The beauty of these funds is that you can invest & forget about it, no need really for any imput from you. Or HSBC have a similar range & I'm also invested in the balanced version of their fund.

JohnWinder

If you only need to hope it grows, and can live with it losing after 8 years, then you've a lot more options with the potential for more gain.

If you don't have any idea of the type of growth or whatever the opposite of that is you can expect from different types of investment, have a look at some long term trends; and also look at some different 8 year periods with different starting and finishing dates.

You can do all this at https://www.portfoliovisualizer.com/backtest-asset-class-allocation

Yes, it has a USA focus, but it won't misguide you much. And someone else will suggest one with a UK focus which is just as informative (hopefully).

You'll then have a sense of what type(s) of investments might suit you.

Eyeful

I suggest a Share/bond split that you are comfortable with and will allow you to sleep at night and stay invested, when the markets fall as the sometimes do. We just do not know when. 

Investing for 10 years (or longer) gives you the best odds of winning the investment game.

The Share 60%/bond 40%, could be thought of as a buy and forget option.

funkyfin2000

Thanks all the Vaguard 60/40 fund looks a good one to go for and looking at past performance (no gurantee!) it could be a winner over the next few years: https://www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

Thrugelmir

funkyfin2000 said:

Thanks all the Vaguard 60/40 fund looks a good one to go for and looking at past performance (no gurantee!) it could be a winner over the next few years: 

More importantly. Does the fund meet your risk appetite?  Seeing the value of investments fall isn't a comfortable experience for those experiencing the volatility of markets for the first time.  

Flatulentoldgoat

I'd suggest Crypto, Polkadot is at a good spot/price right now (£24ish) down from it's usual price of closer to £30. Plus, you can stake it @12% APY.

The Crypto is having a massive bull run at the moment, and most of the mainstream offerings blow all the other products out of the water. Just stay wary of pump and dump coins (DOGE I'm looking at you...)

funkyfin2000

Thanks all, I'm comfortable with the volaitility. I've got a BMO Childs Shares investment that we put £100 in a month for one of our children and that's been up and down - at £11k last year at the height of COVID and has now regain to £19k......... It's there for another 9 years so will see how it goes

Thrugelmir

funkyfin2000 said:

Thanks all, I'm comfortable with the volaitility. I've got a BMO Childs Shares investment that we put £100 in a month for one of our children and that's been up and down - at £11k last year at the height of COVID and has now regain to £19k......... It's there for another 9 years so will see how it goes

That was a mere blip. Not a full blown correction.