UK Investing: how I’d deploy £1,000 in shares today

Rupert Hargreaves highlights the UK investing champions he’d acquire for his portfolio with a lump sum of £1,000 today.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

If I had a lump sum of £1,000 to invest today, I’d concentrate my resources on UK investing champions. By this, I mean blue-chip stocks shares and investment funds. 

Indeed, investing can be risky. Times of economic turbulence can be incredibly stressful for investors. As such, investors should never put more into the market than they can afford to lose.

I keep at least six months of spending in a savings account as a backup fund. This helps me invest without having to worry about market volatility. And by targeting UK investing champions, I can increase my chances of building a large financial nest egg. 

Investing £1,000

Sticking with blue-chip stocks and funds does by no means guaranteed investment success. However, I think it had can help me avoid some of the more significant risks investors may face. These include minimising the chances of being exposed to a fraudulent company and businesses that may be in a troubling financial position.

Blue-chip companies can and do sometimes collapse due to fraud and lack of funds. But with checks and balances in place, which are designed to minimise these risks, means they’re usually discovered before they become terminal. That’s not necessarily the case with smaller businesses. 

UK investing champions 

The kind of companies I’d acquire with a lump sum investment of £1,000 are the sorts of businesses I already own. 

These include consumer goods giants Unilever and Reckitt Benckiser. I like to own shares in companies that produce products I know and use. I can think of at least several products in my home  that feature in Unilever’s portfolio, including legendary brands such as Marmite. The same is true of Reckitt. 

While these may not be the most exciting corporations, they produce products that billions of people worldwide use every day. Unilever estimates that 2.5bn people a day use at least one of its products.

But these qualities don’t guarantee success. Both companies face — and will continue to face — increasing competition, which means they have to stay on their toes. That’s something I’m going to keep an eye on going forward.

Nevertheless, as long as these groups continue to invest in developing their product and remain relevant with consumers, I’ll continue to own these two UK investing champions in my portfolio

These aren’t the only businesses I’d buy with a lump sum of £1,000. Concentrating my assets in just two stocks could be an incredibly risky strategy. So I’d diversify. A great way is to buy an investment trust, such as the City of London investment trust.

This investment trust owns a portfolio of 85 stocks. That provides a high level of diversification, in my opinion. Companies such as Unilever feature alongside firms in other sectors, such as finance and healthcare. This doesn’t guarantee good returns, although it does reduce the risk that one bad investment in the portfolio will hurt the City of London’s performance.

Investment trusts may not be for everyone however. Investors need to place a great deal of confidence in managers. And if these managers don’t live up to expectations, there can be significant losses. Still, I believe it’s a solid business and an excellent way to acquire a diversified portfolio. 

Meanwhile, this UK investing champion also offers a dividend yield of 5.1%. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves owns shares in Unilever and Reckitt Benckiser. The Motley Fool UK has recommended Unilever. 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.

More on Investing Articles

Santa Clara offices of NVIDIA
Investing Articles

The Nvidia share price hit an all-time high this week. But could it still be a bargain?

The Nvidia share price has soared 1,466% in just five years. This writer reckons the best may yet be to…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

How much does someone need to invest to target a second income of £15k – or £150k?

A second income from dividend shares? It's a well-worn path -- and this writer sees some attractions to the approach.…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Could the stock market crash in the second half of 2025?

As the FTSE 100 hits a new high, could a stock market crash be coming? Our writer thinks there's a…

Read more »

Man hanging in the balance over a log at seaside in Scotland
Investing Articles

Start investing this summer with a spare £250? Here’s how!

Christopher Ruane explains how an investor with a few hundred pounds to spare and no prior experience could look to…

Read more »

Young female analyst working at her desk in the office
Investing Articles

Is Palantir stock the new Nvidia? Why UK investors should (or shouldn’t) care

Palantir stock’s the top performer on the S&P 500 this year. Should UK investors consider it amid a blistering AI-fuelled…

Read more »

Investing Articles

3 FTSE 100 shares I think look undervalued

The FTSE 100 may be hitting record highs but there are still bargains to be had on the index. I…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing Articles

£20,000 in savings? Here’s how to target £841 of passive income each month

Passive income plans don't need to be complicated. Our writer explains how someone could target a sizeable second income buying…

Read more »

Happy couple showing relief at news
Investing Articles

3 passive income strategies I like to try to double the State Pension with just £100 a month

Investing consistently, with diligence, and patience can lead to an impressive stock market income that puts the State Pension to…

Read more »