I have £2000 to invest. What can i use it for?

Question

Recently, my car was written off and I was awarded £2000 from insurance. I have bought a small run around car for less than £250 and want to use the £2000 to provide the funding for a car that ill buy in about a years time. I am looking for something that can double or even triple (or quadruple??!) my investment in 12 months or so.

I have already opened a savings account and stuck the dough in there but 5% apr is rubbish on a modestly small amount of cash. Any ideas?

No, i wont put £2k on red at the local casino - though i did think about it...! Would be sooo sweet...

Anyway any other ideas?

Answer 1

Attempting to double or triple ones investment in the short term involves substantial risk to the principle. Granted, we all hear of stories where someone has done so. We even receive lots of spam 'guaranteeing' such opportunities.

The old adage applies that if it's too good to be true, it probably is.

For a short term investment, either say with the savings account or consider investing in a broadly diversified mutual fund such as one of the larger cap, mutual funds. Find a no-load fund, i.e. no entry or exit fees and fair management charges. Check www.morningstar.com as well as the fund itself.

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