Best place to invest £10 k

[Grant76]

Hi all, was hoping you could point me in the right direction.

I have around £10,000 to invest, don't mind a long term at all.

Many thanks

[66comanche]

Premium bonds - your 10k guaranteed safe with chances at £1m, £100k, £50k, £25k, £10k..........etc

On average other vessels will return more % but it's a shot at a lot more, a 3% return leaves me cold.

[nomisesor]

66comanche said:

Premium bonds - your 10k guaranteed safe with chances at £1m, £100k, £50k, £25k, £10k..........etc

On average other vessels will return more % but it's a shot at a lot more, a 3% return leaves me cold.

Premium bonds return (on average) 1.5% at present and the chances of winning are 24000:1 per bond, so each month 10000 bonds have just under a 50% chance of winning, = ~ 6 times a year. The lowest prize, won by about 1.7M people each month is £25, and if you won, say 6 x a year = £150 = 1.5% tax-free. You don't as someone has to win the £1M and smaller prizes. That could be you, but with 3.5bn bonds / 10000 = 350000:1 chance = once in 29000 years. Put it another way, £1 in the national lottery has a 14M:1 chance of ?£2-3M, whereas £1 in PB has a 3500M:1 chance of £1M. The difference, of course is that you get your £1 back from PB, albeit, with RPI at 5%+, worth only 95p at the end of a year, or 96.5p if you win at the expected frequency. Unfortunately NS&I index-linked tax-free are no longer available or you could earn, at current RPI, 5.4 + 0.5 = 5.9% tax-free. Where else to put it? Depends on your risk tolerance and circumstances. If you're game, I'd go for Dogs of the FTSE in a cheap self-select ISA wrapper.

DOI. I have PBs - and since the reduction in prize fund to 1.5% far less frequent envelopes from them with £25 (down from £50) prizes. Also equities - a torrid ride recently.

[robstvr]

Thomas Cook....oh, wait...

Take a good long look at MXP shares, for 15% of your money, and put the other 85% in something absolutely solid.

[66comanche]

nomisesor said:

66comanche said:

Premium bonds - your 10k guaranteed safe with chances at £1m, £100k, £50k, £25k, £10k..........etc

On average other vessels will return more % but it's a shot at a lot more, a 3% return leaves me cold.

Premium bonds return (on average) 1.5% at present and the chances of winning are 24000:1 per bond, so each month 10000 bonds have just under a 50% chance of winning, = ~ 6 times a year. The lowest prize, won by about 1.7M people each month is £25, and if you won, say 6 x a year = £150 = 1.5% tax-free. You don't as someone has to win the £1M and smaller prizes. That could be you, but with 3.5bn bonds / 10000 = 350000:1 chance = once in 29000 years. Put it another way, £1 in the national lottery has a 14M:1 chance of ?£2-3M, whereas £1 in PB has a 3500M:1 chance of £1M. The difference, of course is that you get your £1 back from PB, albeit, with RPI at 5%+, worth only 95p at the end of a year, or 96.5p if you win at the expected frequency. Unfortunately NS&I index-linked tax-free are no longer available or you could earn, at current RPI, 5.4 + 0.5 = 5.9% tax-free. Where else to put it? Depends on your risk tolerance and circumstances. If you're game, I'd go for Dogs of the FTSE in a cheap self-select ISA wrapper.

DOI. I have PBs - and since the reduction in prize fund to 1.5% far less frequent envelopes from them with £25 (down from £50) prizes. Also equities - a torrid ride recently.

Indeed, all true but the second part focusing on the £1m prize makes it sound worse than it is (full list below) - I understand that on average you can get a consistent higher return elsewhere, but the point of PB's is the gambling element, which appeals to some. After all, a £5k or £10k win is worth many years of interest.

£1,000,000
£100,000
£50,000
£25,000
£10,000
£5,000
£1,000
£500
£100
£50
£25

[ringram]

http://paceperformance.com/i-6255294-12498827-572-...



HTH

[RichyBoy]

Wouldn't it be better to stick it in a stocks and shares isa with some large cap shares?

[nomisesor]

66comanche said:

Indeed, all true but the second part focusing on the £1m prize makes it sound worse than it is (full list below) - I understand that on average you can get a consistent higher return elsewhere, but the point of PB's is the gambling element, which appeals to some. After all, a £5k or £10k win is worth many years of interest.

£1,000,000
£100,000
£50,000
£25,000
£10,000
£5,000
£1,000
£500
£100
£50
£25

Prize value

Number of prizes

Higher value (6% of prize fund)

£1 million 1 prize
£100,000 4 prizes
£50,000 10
£25,000 17
£10,000 43
£5,000 87
Medium value (5% of prize fund)
£1,000 1,064
£500 3,192
Lower value (89% of prize fund)
£100 31,259
£50 31,259
£25 1,706,155

Total value for June 2011
£53.2 million 1,773,091

Well, you're 130 times more likely to get a £5k or £10k prize - with 10000 bonds once in 230 years vs once in 29000 years. Having said that, I won £500 in the 1980s on a £5 bond bought in '66 and my father had £2000 in '64 - that was one of the big prizes in those days.

As in the post above and in mine - large caps in an ISA - Dogs of the FTSE for me. You still get the gambling element - remember BP a while ago!?

[BoRED S2upid]

MK1 Escort.

[Grant76]

Thanks very much for the responses guys, really appreciate it.