Want to buy breakfast with gold? Millions what is the good way to invest money British Gas price hike: Energy bills for dual fuel customers will increase by an average of 5. 1,000 that I’d like to invest: How should I do it and what are the best options?
1,000 in spare cash which I’d like to invest. How should I invest the sum and what are the best options? 1,000 is a good chunk of money to your average John or Jane Doe, but it is considered a modest amount in investing terms. At this level it is unlikely to be cost effective paying for financial advice to help you decide where and how to invest, so people will most likely head down the route of being a DIY investor. 1,000 you can still invest to make some money if you know where to look and think long-term. But before making any investments, it is important to consider how long you plan on keeping your money invested for.
You should also figure out how much of a risk taker you are. After all, the value of any investment can fall – but those at the highest risk of a tumble typically offer an appetising reward if all goes as planned. Is now the time to bag a stock market bargain? It is also worth thinking about how engaged you want to be.
Do you want to cherry-pick shares yourself, or do you want a professional fund manager to do it for you? Alternatively, you may prefer to sign up to an online investment service, typically called a robo-adviser, that assesses your risk and chooses an investment portfolio for you. In addition, don’t forget about the price tag your investments come with. Passive investments – those that simply track a given index like the FTSE 100 – are generally cheaper than actively-managed funds, where a manager aims to beat the market benchmark. You should also aim to avoid fads. Jumping on a bandwagon because you think you will make quick money is not an investment it is a gamble.