Ask HN: how do you invest?

4 points·amuresan··7 comments

Hello,

I have a sum of money that I am considering investing (in the order of 10 000€), but I don't have a background in finance, so no solid idea of where / how to invest.

How do you invest relatively small amounts of money? Is the stock market a good idea if you have a few companies in mind?

As a side note, I do understand the risk/reward mechanism and its implications. Thanks!

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What do you want it to do for you? Help fund a car (just put it into a savings account)? Help purchase a home (put it into fixed income, bonds or CDs)? Or keep you comfortable when you retire (put it into a good mutual fund)?

Generally speaking, mutual funds are a good balance for novice investors if you don't need the funds for a few years. I've had good results (>10% compounded annually) with funds that have a good track record and fund manager over 10 years. Best performers for me are HFCSX and BGRFX.

A little more modern, and I'm not sure what the offerings are in Euros, are peer lending sites like Lending Club.

Thank you for the advice. Basically this is what I was looking for: possible usage directions with different risks and rewards.

Since your using Euros, check out equity crowdfunding. Crowdcube.com lets you invest in startups. My recommendation is you take that 10k and put into into 10 different investments and hope that one is a banger.

thanks for this!

hi and thanks for this. One question, this seems to be oriented towards people living and working in the UK (the SEIS program and the fact that they're using pounds everywhere). Do you know if this platform also works for people outside the UK?

Buy an index tracker fund.

Sounds interesting after a first read, I am considering it. Do you have any resources / advice here?

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