I have a large lump sum I wish to invest. What has the higest return with minimal risk?

Or alternatively, a good investment with a risk worth making? I would consider stocks and shares if only I knew where to start with it...

There is not enough information to answer your question.

How much is a large lump sum?
What is a good investment?

The highest return is always the highest risk
The minimal risk is always the lowest return (Goverment Bonds get you 4% a year with minimum risk)

You can start by opening a brokerage account at ameritrade.com

Drop me a line if you need detailed information about investments in the stock market.

I would suggest you to learn as much as you can first about finance, stock markets, business in a general way, and then look for an advisor or broker, that has worked before with any collegue, or friend of yours, and obviously has made them money, that way you can trust the advisor or broker, personally I would suggest you to start with FUNDS in short term, funds they have low risk, and low returns, so I think that's the best first step, then when you have more experience you can start investing with stocks, of course making your own researches about the companies, and then taking your risks, based on what you have done with your research.

I use to work at Franklin Templeton Investments鈥?and I can tell you right off. Never trust a broker or any financial planner who gets a percentage of anything you buy or sell. For about $100 to $150 you can see a real financial planner who will help you figure out your tax base, where you are, where you want to go, and how long it will take you to get there. The Stock market is still flat since the fall in 2000. Nobody with 鈥渞eal鈥?money is buying in the US stock market. All the movement you see is industry traders (Mutual Funds, Pension Funds, Bulk IRA鈥檚 that type of thing.)
The places to be right now are Canada and Australia companies that sell commodities. Why? Because China is buying raw materials like crazy and it would be unAmerican to sell to communist.
If you want safe money. Invest in loans. Again go International. And never settle for less than 12% on personal notes.
The US has been living on barrowed money for too long. Pretty soon they are going to have to start paying it back and if the average US citizen spends $1.07 for every $1.00 they make鈥?Hard times are coming and coming fast.
One of the myths of the great depression is that it was caused by the stock market crash of 1929. That鈥檚 garbage. The stock market does not cause the economy to crash. The economy causes the stock market to crash. People (farmers) not able to pay real estate loans cause the stock market crash and the depression. And anyone who does not think it will happen again just does not know the fact. Sorry, but it鈥檚 true.

Ask yourself what it is you want to do with the money, then YOU can workout where to put your money. Are you going to use the money for a downpayment for a house? For retirement? For a vacation? Once you know what, then you can work out when. Anything less than 10years - consider savings accounts, CDs - nice and safe - no huge return - but your money will be there when you need it. Longer than 10 years - consider stocks and bonds - but be prepared to ride the markets ups and downs. Take the time you need, and anyone that rushes you 'because you'll miss the boat' get up and walk out - Don't be afraid to say 'NO Thanyou!' If an investment is good at $20, it's still good at $22 or even $25, otherwise it's not an investment - it's a trade - where you get in and get out - don't get involved in those either - trading - buying and selling frequently - will always cost you money. Good Luck

start here.......... bobbrinker.com and learn ...........go here for some safe alternatives. ... vanguard.com or ...... treasurydirect.gov for IBONDS


never mind, i see you are across the pond.

I love Wades answer....but....

With the limited information you give there is no good answer. You looking for long or short term investments? Do we have tax liabilities (where did this lump sum come from...retirement buyout?)

I was fortunate to have a tax preparer/CPA who also had a financial advisor in her office. When I retired I had $600k to invest, and they walked me through everything.

So I won't even try giving you any guidance. Talk to an advisor before you do anything.

As for the stock market crash...once of the things that hurt many folks was this: They borrowed huge amounts of money to invest in the stock market. When the markets crashed, they lost all their money (and income needed to pay off their loans), and they lost everything.

i would recommend a diversified mutual fund. with many mutual funds you're accepting 'market risk', which is less risky than investing in a single stock or bond.

There is no such highest return with minimal risk.

There are two things that you should ask:
(1) What is the highest return with certain-level of risk?
(2) What is the minimal risk to yield at least a target value of expected return?

There are a number of mathematic models for these kinds of question (e.g., Markovitz portfolio optimization).

Finally, it depends on how long that you would like to get the returns. Stock markets will give you higher returns on the average, but it takes longer.

Bond markets will give you some returns with minimal risk. Just be aware of the terms. Luckily, the short-term bonds (called bills) have the same yield of mid-term/long-term bond (called notes, and bonds) recently.