I am of European origin and I live in the U.K, studying for my Doctorate. I have managed to save an amount of money, around 5,000 pounds. I would like to ask what people here think is the best (and safest) way to invest this in order to gain some profit. I am not necessarily interested in profiting in a very small time period. I want to mention that I do not have something particular in mind, and no previous experience or education in economics or finance; it is just an idea I had and thought I might try to get some guidance.

Thanks for any help.


First I assume you are resident for tax purposes in the UK?

1 Put 2000 in a cash ISA as an emergency fund.

2 Buy shares in 2 or 3 of the big generalist Investment trusts as they have low charges and long track records – unless your a higher rate tax payer don’t buy the shares inside the ISA its not worth it

You could use FTSE 100 tracker ETF's or iShares instead of Investment Trusts.

  • Thanks. But unfortunately I do not understand anything of what you said hah First of all, no, I do not pay any taxes, I am classified as a student. And what is ISA? Is it a website where I buy shares? And which are the "big generalist investment trusts"? FTSE 100? ETF? I really feel so stupid. Sep 14 '14 at 14:46
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    @MarioBenedict31 en.wikipedia.org/wiki/Individual_Savings_Account and en.wikipedia.org/wiki/Individual_Savings_Account Don't take this the wrong way but you might want to stick to a savings account if your so unsure about stocks and shares
    – Pepone
    Sep 14 '14 at 14:52
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    @MarioBenedict31, in the UK being a student doesn't exempt you from paying tax - it's to do with your income level. Not that the income on a £5k investment will put you over the personal (tax-free) allowance, but just to correct that misconception you had.
    – Vicky
    Sep 15 '14 at 9:06

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