first_img Harvey Jones | Tuesday, 28th January, 2020 This is where I’d invest £1k right now Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Let’s say you’re lucky enough to have £1,000 at your disposal. Don’t just blow it, instead you should aim to put it to work. So what should you do with it?Reduce debt firstIf you’ve got expensive debts, such as a credit card charging 20% a year, a store card charging 30%, or heaven forbid, a payday loan, the answer is easy. Use your £1k to pay that down, because you will struggle to generate that level of return.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…If your debts are under control, you should look to invest your money somewhere that will increase its value over time.What you shouldn’t do is leave your money in a savings account or Cash ISA for the longer term, as these days you will get a near-zero return. In real terms, it will fall in value, after inflation. Instead, I would recommend investing it in the stock market, using your annual tax-free Stocks and Shares ISA allowance. That way you can take all your capital growth and dividend income free of tax, for life.Go for stocks and shares The simplest way to invest £1,000 is to buy a low-cost exchange traded fund (ETF) tracking one of the UK’s main indices, such as the FTSE 100 or FTSE 250. ETF providers iShares and Vanguard both offer low-cost options, or you could try an ETF tracking the FTSE All-Share, to give you the widest possible exposure to UK listed shares.The attraction of index-tracking funds is that you do not have to worry about stock selection or market timing, you simply invest your money, and leave it there for years or decades. The low charges, which can be as little as 0.07% a year, mean you get to keep more of the share price growth and dividend income for yourself.Trackers are a good building block for your portfolio, but you shouldn’t just invest in the UK. Over time, you could add to these funds, by investing in the US via an ETF tracking the S&P 500, for example. Or by an actively managed fund that puts money into a global pool of stocks and shares, such as Scottish Mortgage Investment Trust, or maybe Fundsmith Equity, run by the country’s most popular fund manager, Terry Smith.Turn your tiny acorn into big moneyYour £1,000 should only be the start. You should add to it if you can, investing it in a spread of funds and individual equities as well.Buying individual stocks can really turbo-charge your returns. There are five top UK stocks to consider, listed at the bottom of this article. Invest using an online broker to save money, as these have the lowest charges on the market, and there are several good ones to choose from.As you get used to investing, and comfortable placing your own stock trades, you can start to build serious money. Over time, you could even build a £1m portfolio. Your £1k is only the start.center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Harvey Joneslast_img read more