Quora Answer: What Should I Do with £10,000 Saved at 25 Years of Age?

The following is my answer to a Quora question: “At age 25, and with no business idea, what would you do with the £10,000 you had saved?”

If you have no business idea, the most logical thing to do with that money would be to invest that money.  In that, you have options, from investment-linked insurance plans to collective investment schemes of various sorts.  In whatever you do, be cognisant of your investment horizon and risk tolerance.  As a beginner, try to put around 40% in debt instruments such as sovereign bonds, and the other 60% in equity.  Make sure you diversify across industries, regions, and types of instruments.  Make sure that your basic return is at least above the annual inflation rate.  You may need the professional advise of a financial advisor.  As you gain in experience, and knowledge, you may consider riskier or more esoteric instruments.