Small, short term investment advice

[CAA]

We received EUR 5,000 in wedding gift money that has been sitting in a bank account for one year doing nothing for us. I'd like to make that money grow over the next 2 years and eventually use it toward furnishing a home (whenever we can find one!). I thought shares would be a good option, but from reading the key posts it appears they are not a good buy in the short term. Can anyone suggest other options for a bit of extra short term growth on this money?

Thanks for your help.

CAA

 

[Dave Vanian]

Any option that has the potential to give you a higher return than deposits carries the risk that the value may fall from time to time. If you're prepared to accept that the value of your investment may have fallen in two years time when you need it, shares or other Managed Funds (without early exit penalties) are an option.

If you're not, look for the deposits section in the Best Buys on Askaboutmoney.

 

[JR Rizzo]

you dont appear to know much about shares or the risks/time horizon's
associated with investing.

unless you are prepared to invest your time in continual education, dont
bother with shares.

also dont bother with any investment "managed funds" that all the big boys advertise,
as well as the fact that these investment fund managers dont have your interests
as priority, they should also be seen as needing same risk/time horizon as shares
(cause they basically are shares!)

Just play it safe and put on high interest deposit for approx 5%,
ie irish nationwide, anglo-irish, etc
which should keep close to inflation.

if there was something that gave better return with same/less risk
we'd all be doing it

JR

 

[moondance]

I'd just put it in Rabodirect or some other savings account with a competitive interest rate and try adding to it on a monthly basis and you'll be surprised on how you can build it up without risk.

 

[Madangan]

This may sound crazy but I know friends who had about €10,000 and knew they would need it in about a year or so...they put it all into Prize Bonds....logic was at worst there was no risk..would get back exactly what they paid and and would make so little money in any risk free investment that really they would not lose out and at best they might win something in the monthly draws... I think they did have some small wins so they were happy..

A bit off the wall but just a suggestion