Hello all,

I live in the UK and I have approx £10,000 which I would like to invest.

I have been reading many posts and here are the options which I have seen:

1. Develop land / property
2. Develop my skills to better myself
3. Set up a company
4. Place this money in a bank

What I want to do is invest this money to get a decent enough
return on it. I would be willing to start up a company, but one which
would require little maintenance as I am still studying.

Can any one tell me what the best thing to do with this money is?

Thanks

Hi! If you want high returns on your money why dont you consider
option of investing the money in capital markets. You can not only
invest in UK but also think of investing in booming Asian Economies.

Hi,

Thanks for your reply.

Could you please show me some more information on this topic.

Also how safe is this method? Is it similar to the stock market?

Thanks

Dear momal,

Investment in capital market and stock market is one and the same thing. 

If you are looking out for safer options you can always invest in some
of the very good Mutual Funds in India which have track record of
giving returns atleast upto 14%. If you have a high risk appetite you
can go for investments in Indian Stock market where in last year
return was around 60%.

You can also look out for Venture Capital options for Investments but
that is the most risky way and your amount is small for that option.

Few more safe options I see is investing in Fixed Deposits in India or
other Asian countries where interest rates are still more than 9%
(atleast for residents).(These all are just advice, no claims can be
made on suffered losses :-) )

All these suggestion does not include a option considered by you to
set up an company because in my frank opinion it's difficult to
dedicate 100% to business while one is studying and both the things
might be done half heartedly which is totally undesirable.

Best Regards,

Also what is the duration in which you would like to keep your money
tied? 1 year / 2 year and so on...

What are your skills now?  What skills would you like to have?  What
would your company do?

Hi,

Im currently doing a computing degree so the skills would be computer related.

I am unsure about the company, but it would have to be wuite low
maintenance, eg setting up a nursery for plants, where you just spend
some time at the begining planting them and just wait till they grow.

As for the period of investment, i was thinkin maybe in the region of
3 years, but if this was a company/land/housing development it would
be longer.

Thanks for your comments so far

If you have an investment horizon of 3 years I see capital markets as best option.

I have tried several kinds of investments over the past 50 years in
the USA. The only one I tried in raw land was a disaster. There were
no buyers. I doubled my money in one mutual fund, but 4 others were
disappointing, partly because they had a high up front load. You need
to choose a mutual fund that has few costs, especialy the first year
of ownership as you may decide to sell before the second year There is
some risk in all investments, even the bank. Diversifing makes sence,
but most investments have a penilty if you are investing less than
several thousand pounds.
 Investment councellors can be great if you expect to have a large
income next year, as they will put you in something good in hopes of
earning big commissions next year. Typical councelors will put you in
something that will earn a big imediate commission for them, as
repesat business from you is unlikely and you likely have few wealthy
freinds. Big commission for the councellor rarely equals either safety
or good yield for you.
 You really need to learn a lot about investments to avoid getting
ripped off, In the meantime the bank is likely the safest. Avoid the
slick talking, high pressure type investment councellors.   Neil