Investing a lump sum can yield better returns than keeping it in a savings account, especially if you won't need the money for several years. According to the Financial Conduct Authority, around seven million UK adults have £10,000 or more but aren't investing it.

Why Choose a Global Tracker Fund?

A global tracker fund is a straightforward and cost-effective way to start investing. It tracks thousands of companies worldwide, mirroring the performance of a chosen index like the FTSE 100 or S&P 500. This approach keeps costs low while providing broad market exposure.

Expert-Recommended Funds

For Balanced Investors

Holly Mackay, founder of investing website Boring Money, recommends the iShares Core MSCI World UCITS ETF as an excellent starting point. This fund offers diversification across global markets with minimal fees.

For Risk-Takers

Those willing to take on more risk might consider the Scottish Mortgage investment trust. This fund focuses on innovative businesses that are disrupting their industries, offering the potential for higher returns.

For Cautious Investors

For those prioritizing capital preservation, the Troy Trojan Fund is a highly rated choice. It aims to protect wealth from inflation while still providing growth opportunities.

Other Highly Rated Options

Another well-regarded fund is the Fidelity Index World Fund, which provides broad market exposure with a focus on long-term growth.

By starting with a global tracker fund and considering these expert-recommended options, you can begin your investment journey with confidence.