Turning £500 into £5000
May 6, 2011 7:24 AM Subscribe
I've been challenged to turn £500 GBP into £5000 (or more) within the next six months. I know NOTHING about investing, stock markets or investment markets. Any good resources to start this challenge with? Ideas on best strategies for this sort of speedy growth? Any good books / online communities / articles to read? Do you think it's even possible?
posted by philsi to Work & Money (50 answers total) 8 users marked this as a favorite
My parents have set my sister and I the challenge to turn £500 into £5000 (or more) within six months (by 4th November 2011), on which they'll match the money. For one of us, but not both. They've never been keen on just giving us money, we've had to earn it, which has always provided some "interesting" challenges. Having this would mean I can pay off my student loans, so I'm quite keen to take it seriously.
How would you advise is the best method to do this? I know next to NOTHING about the stockmarket, (other than a first-year-university class on economics and the mechanics of the stock exchange which I've mostly forgotten) and don't have time to spend hours every day watching tickers and making decisions. I've briefly considered some investment funds, but the market is massive, and where to start is a bit of a challenge. Also, with the fees structure that many of them use (charges to pay money in, annual fees, charges to withdraw money) I'm a bit concerned that they may end up taking more in "fees" than I make in interest / growth.
Other alternatives (such as investing in a business, property etc) I've initially thought would be too risky for such a short term return - and with only £500 to start, it'd be tricky.
I'm based in the UK, have a very limited income to risk (no more than £25- £50 a month spare). Any and all suggestions welcome - even if it's just to tell me that it can't be done without years of training / sheer luck and to stop wasting my time!