Are blue-chips better for long term investments and not for the short term?

would it be wise to invest 拢10,000 in blue chips for one year or are blue chips better for long term investment??

There are two ways to invest in equities (blue chip or not).

1) Long term: You can expect a reasonable return on your money over and above inflation. Your capital will fluctuate and you need to time your exit carefully.

2) Short term: For everyone who makes a quick gain, there's someone who makes a quick loss. If hedge funds can go bust, so can you.

In financial markets, "Short term" equity investments are nothing but for pure speculation.

You'd be better off investing in an OEIC or Unit Trust for a wide spread in these current financial climates as 拢10,000 isn't nearly enough to achieve a spread of investments that would offer suitable diversification.

You need to be able to put your money aside for a minimum of five years. Funds supermarkets (like "Fidelity") offer funds that have achieved over the past 25 years, an average return of some 20%. Fidelity's Special Situations Fund has done just that - but that's a rarity, and was managed by Anthony Boulton who retires this year.

Nevertheless, without knowing more about your situation, it's difficult to give you more information.

Use up your ISA Allowance in a stocks and shares ISA (Remember 拢7000 this year, and 拢7200 come april 6th) so allowance of 拢14,000 in 2008 alone)) and if you've done that or don't want to invest for a minimum of 5 years you could consider savings certificates, or notice accounts. For money your size it may be worth speaking to an advisor over the phone or in person.

Remember, that advice itself will cost you nothing - and most advisors don't even charge for an initial consultation.