Best way to invest £1500

foxybabe

I have got £1500 to invest for my eleven year old which is currently sitting in a childs savings account earning 5.6%. My thoughts were to put it into some kind of bond and tie it up till he is 21. But have been told by the halifax that it is not really enough money to do this and it is best where it is!!!!!
Any advice would be appreciated.

Thanks in advance.

dunstonh

But have been told by the halifax that it is not really enough money to do this and it is best where it is!!!!!

Halifax are only authorised to discuss and recommend their own products (which are mostly rubbish). So, it is no surprise you got that response.

If you are looking to invest rather than save, then an investment trust or unit trust is probably the simplest option and can be designated to the child. i.e. your name re child name. Minimum investment is typically £500 with many providers but some are £1000. Either way, its not a problem for your amount.

foxybabe

Where is the best place to look for an investment/unit trust?

thanks

dunstonh

I'm sure Hargreaves Lansdown will do this on their DIY fund platform if you take a look there. That will give you a selection of around 1000 funds to pick. If you need advice, then an IFA would be the next best option. However, the size of investment is a tad low for a lot of IFAs.

radioguinness

Hi dunstonh. What if someone where to go to the Hargreaves Lansdown site - but still be non the wiser about how to invest a modest amount of money for the longer term (£1000 for 18 - 20 years in my case)?

What would you suggest as a simple, safe alternative to an ISA?

dunstonh

Hi dunstonh. What if someone where to go to the Hargreaves Lansdown site - but still be non the wiser about how to invest a modest amount of money for the longer term (£1000 for 18 - 20 years in my case)?

You could see an IFA but £1000 is going to find most IFAs say thank you but no thanks (even on maximum commission its £30 income for them which isnt worth the time required). A family IFA that looks after other family members and other needs would do it but as a single one off it isnt likely.

What would you suggest as a simple, safe alternative to an ISA?

You wouldnt use an ISA in this case. ISAs are a personal allowance for yourself and not a child. ISAs also carry no risk. They are just a tax wrapper. A container for investments. The investments carry the risk which can range from very little to very high.

Risk also reduces with timescale. Using a savings account for 18 years would be wasteful in my opinion. A high yielding fixed interest fund with income reinvested would be a good option for someone really cautious or £500 in stockmarket and £500 in fixed interest funds to get a bit of both.

I would still stick to unit trust or investment trust. Personally, I use unit trusts for my children.

cheerfulcat

foxybabe wrote: »

Where is the best place to look for an investment/unit trust?

thanks

For investment trusts, the AIC website.

Aegis

For unit trusts, https://www.citywire.co.uk usually works well for me. https://www.trustnet.com is also supposed to be quite good.