Where should I invest for the long term?

Q I would like to open an investment vessel to pay off my mortgage of ?80,000 in l7 years time. But I don't know what to choose.

I am married with two children, earn ?20,000 and my wife earns ?l2,000. I would be grateful if you could point me in the right direction. I would consider myself to be a medium risk investor.

SM

A I would suggest putting as much as you can afford into an individual savings account (Isa) on a monthly basis.

You can take advantage of the tax-free benefits, which will help boost growth, and you are not locked in, although it should be viewed as a long-term investment.

In spite of the recent falls in share markets, l still believe that shares will provide the best return over the long-term and monthly saving reduces the risk.

You are basically aiming to earn ?4,600 a year but the amount you contribute annually can be a lot less than that, allowing for compound growth over the years. Personally l favour investment trust savings scheme because the charges are so low.

Alternatively you could play safer by investing in a corporate bond unit trust (reinvesting the income earned), but with shares at such a low level, it seems a good time to buy taking the long-term view.