Where I’d start investing £8,000 in April 2024

If I were lucky enough to have £8,000 burning a hole in my pocket today, I’d start investing in the stock market. That’s because history has long shown its wealth-creating powers. For instance, an average 10% return per year would transform my £8,000 investment into approximately £33,417 after 15 years. However, if I invested another £500 a month, assuming the same 10% return, that £8,000 would grow into a huge £232,790 after 15 years. That’s due to the power of compound returns (interest upon interest). Here are two areas of the stock market that I’d consider investing in right now to get the compound snowball rolling. First up are investment trusts. These are closed-end funds that are listed like stocks. Interestingly, this means they can trade at what are known as discounts or premiums. This refers to the difference between the market price of the investment trust’s shares and its net asset value (NAV) per share. If the share price is lower than the NAV, it’s trading at a discount, and vice versa. Right now, the whole sector has been marked down and is trading at a discount. But I don’t think it will always be this way. Indeed, these...

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