Any suggestions for where to invest a small amount of money on a monthly basis?

benjyf

I am currently studying in University, whilst working part - time. I have a student loan, most of which has gone into a savings account. I am now working a bit and like the idea of investing around £20 a month into something slightly more high-risk, high gain than a savings account. Shares don't appear to be an option as the transaction fee is a bit high, similar problem with funds. Any suggestions welcome?

MrMicawber_2

As far as I know you might struggle a bit with £20. Investment Trusts let you go as low as £30 regular saving or £250 cash but this will vary from trust to trust.

You might be able to have a word with a company like Hargreaves Lansdown. The minimum they normally insist on is £50 per month but as you are a prospective long term customer they might at a push take £20 per month until you start earning more. Nothing venture nothing gain.

Otherwise suggest you put your money in the highest interest account you can get then when you have a lump sum go for an S&S ISA with a discount broker (e.g. H-L again). I take it you register R85's against your savings accounts?

dunstonh

Fund supermarkets typically kick in at £50pm but Invesco Perpetual and M&G will do £20pm

benjyf

Thanks for both of your replies.
Sorry, I am a complete novice as you might have noticed. I did look at invesco's site before I posted, but there were all different funds and I didn't really understand the difference.
Which one will allow me to spend £20 a month? Can I have a direct debit setup for this? Also, if I stretch my budget to £50, does this give me a much bigger choice? Is this worth it? i.e. Are any of the funds accepting £50 that much better? Currently it all goes in to a savings account and although i'm happy with the interest, I like the idea of risking a bit of the money for the risk I might make a lot more. If funds do very well, does this mean I get a high return? I here lots of double or even triple digit returns from funds, but what does this actually mean?
Thanks for your help and I look forward to reading some more.