best investment

adrian2

Hi i want to invest £120 pounds per month over 10 years what is and who is the best investment or company to go with.
regards
adrian2

Aegis

Are you looking to invest in funds or shares? Are you looking for income or growth? Are you looking for low risk or high risk? (or, another way, how much of your value would you be prepared to lose in a bad year?)

At the moment you have literally tens of thousands of investment options, if not more. You might need to be a little more specific, and thinking about the questions above will help you decide where to look next!

adrian2

Hi Thanks for the advise

i am looking for low risk but a good return over the 10 years so need a bit of direction really.

Aegis

Well, first of all the bad news... in general risk is linked to return, so with low risk you're not likely to get a good return. As such, don't be disappointed when people offer you suggestions that don't seem to be much better than standard cash accounts.

The first bit of good news: with 120 invested every month for 10 years you'll have put away £14400 without earning any interest on it. Go you!!

The second bit of good news: 10 years is a long time to invest for, long enouhg to benefit from the long-term upward trends of stock market type investments without worrying as much about short term market trends.

The third bit of good news: because you're saving £120 per month, you will benefit from something called pound cost averaging, which will work to smooth out the downturns by buying more units/shares/widgits when the price is temporarily low.

All in all, you can afford to look into some low risk investments, possibly some unit trusts that invest cautiously in low-risk sectors. Investing in those via a stocks and shares ISA has the potential to net you some reasonably good long term growth without the turbulance that accompanies the higher risk (but higher reward usually) sectors.

Have a browse around the ISA forum, specifically the "how do I choose a S+S ISA" thread, as it talks about risk levels and what to look for in an investment in quite a lot of depth.

white.wizard

You can choose a mutual fond with low risk. Let's say you can get 10% per year.
In 10 years for 120 invested every month you can get almost 24000 £

dunstonh

You would choose more than one. £120 would typically allow 2 funds although some fund supermarkets allow smaller amounts per fund.

Single fund investing results in lower returns in the long run as you are putting all your eggs into one sector. As the fund values increase over the years you can diversify further by fund switching.

purch

...unless of course you choose a 'generalist' fund or Investment Trust which will spread your risk over different sectors.

It could be the best way to get diversification, unless you are willing to split your £120 pm into 7 or 8 different sectors which is pretty much impossible

wombat42_2

purch wrote: »

...unless of course you choose a 'generalist' fund or Investment Trust which will spread your risk over different sectors.

It could be the best way to get diversification, unless you are willing to split your £120 pm into 7 or 8 different sectors which is pretty much impossible

I think you mean Global fund :eek:

I know a good one.

MrMicawber_2

If you are investing that amount of money i.e. over 14k it would probably be a good idea to have at least two funds - probably 3 or 4. Loads of really good funds around but nothing like spreading risk a bit.