How to Invest £20,000 | Investing your first 20K (2024)

FAQs

How to Invest £20,000 | Investing your first 20K? ›

If you're unsure when or if you'll need the money, you might opt for low- or no-risk options such as a high-yield savings account or government bonds. You might also be interested in investing $20,000 in companies that reflect your values, such as Black-owned businesses, halal assets or sustainable energy companies.

If you're unsure when or if you'll need the money, you might opt for low- or no-risk options such as a high-yield savings account or government bonds. You might also be interested in investing $20,000 in companies that reflect your values, such as Black-owned businesses, halal assets or sustainable energy companies.

Invest in stocks and shares

If you have no immediate need to access your £20k and you're prepared to accept a degree of risk, you could consider investing in the stock market. This minimum investment timeframe for investing in stocks and shares is at least five years.

Invest with a brokerage account

A sum of $20K is more than enough to get started with most online brokers.

The recommended amount to save varies from person to person, as everyone's financial situation differs. But for many people, $20,000 is a sizable emergency fund goal that will go far. If you have a large chunk of savings set aside, make sure you keep it in a bank account that earns interest.

Stocks, bonds, high-yield savings accounts and retirement accounts are various choices to consider. You should determine your financial goals and risk tolerance first. This clarity will help to guide your investments.

How many stocks should I own with 20k? ›

Since owning individual stocks increases your portfolio's exposure to the performances of individual companies, it's a good idea to diversify your stock holdings by investing in at least 10 to 15 stocks to start. With $20,000 to invest, that works out to about $1,500 to $2,000 per company.

“Saving $20,000 per year is about $1,667 per month or about $385 per week,” she said. “Thinking about it in smaller terms makes it less daunting of a goal.”

£20,000 is a great amount to invest and – if you make the right choices – can make a real difference to your future financial security. Get the lowdown on how to invest £20,000 in 2024 to make sure you make the right decisions for you.

A monthly SIP of Rs 20,000 in Quant Small Cap Fund would have grown to Rs 1.04 crore in the last 10 years. The scheme gave an XIRR of 27.73% in the same period. Quant ELSS Tax Saver Fund would have turned a monthly SIP of Rs 20,000 into Rs 95.38 lakh with an XIRR of 26.04% in the last 10 years.

The classic approach of doubling your money involves investing in a diversified portfolio of stocks and bonds and is probably the one that applies to most investors.