Starting out - where to put £2.5k?

brad_drum

I've put aside £2.5k that I can afford to take some risk with - to be specific, I don't want to simply gamble it all away or I'd go down to the bookies! But if it was to drop quite significantly due to poor decisions, it wouldn't be the end of the world. Don't need access to the cash. What would be your recommendation?

born_again

Define risk & time scales.

justwhat

If you are nearing pension age , then put it in there.

Cash ISA is not risky at all. 

You don't say what you financial or employment situation is. 
What about  Help to Save if you are on low income?

El_Torro

Do you have a suitable emergency fund? This is usually between 3 and 6 months worth of expenditure to cover unforeseen events. If not then this money should stay in cash until you do have a suitable emergency fund. 

If you already have enough in cash then your pension or a Stocks & Shares ISA are both good ideas. Depends on your circumstances (which we don't know). 

boingy

Pension or Stocks and Shares ISA. Then just forget about it.

FlorayG

It's not a lot in the scale of investments. If you can afford to lose it all and prepared for the risk I would probably put it into bitcoin

Albermarle

ETF's and S&S ISA are not mutually exclusive. You can hold ETF's within a S&S ISA. 

Eyeful

Need more info:

1.Your Age

2.Do you have an emergency fund (how big is it)

3. Do you have a pension

4. How long time frame is this for.

5. What experience do you have in investing

6. If investing do you just want a buy & forget approach or something more hands on? 

brad_drum

I'm in my 40's, decent annual salary (over £100k), a couple of decent pensions - 16 years in a private sector final salary scheme and 6 years (to date) in the NHS pension scheme paying in maximum contributions. Also have £11k ish set aside for emergencies.

Money wise, I'm comfortable, but I want to start investing some of my earnings rather than squandering it on holidays, cars, food/drink, etc! The £2.5k is just to dip my toe in the water, but I don't have enough spare time to be too hands on monitoring stocks and shares etc, so it needs to be relatively light touch. No need to withdraw the money, I'd rather see how it grows and/or reinvest.

Thanks again.

brad_drum

...And just for info, I'm probably leaning towards stocks and shares ISA (I think).

Eyeful

1. First watch is:  https://www.kroijer.com/

2. Then consider
(a) Low cost passive Global Index Fund or ETF
Examples: VWRP, HMWO
https://monevator.com/best-global-tracker-funds/
(b) Low cost passive Global Multi Asset Fund
Example: https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced
https://monevator.com/passive-fund-of-funds-the-rivals/
(c) Target Day Funds
https://www.vanguardinvestor.co.uk/investing-explained/what-are-target-retirement-funds
https://www.ii.co.uk/ii-accounts/sipp/sipp-investment-ideas/target-retirement-funds

3. Remember
Investments should be held for the long term (say at least 10 years). 
Do not jump ship just because the market crashes (classic newbie reaction)
 
Hope this helps.